This article is written by YourLifeChoices Founder Kaye Fallick
I’m thrilled to have been invited to once again report on matters financial for all YourLifeChoices members. Some of you may remember me from ‘back in the day’ – and I’m hoping those who don’t will soon become new friends.
Today I’m covering last night’s Federal Budget (2025-2026), or to be precise, just the items that older Australians need-to-know. The good news is that I’ve slogged through all the petty detail on your behalf and organised what matters most into five categories:
Health
The main announcement in health was made a few weeks back – and immediately matched by the Federal Opposition. This relates to an 8.5 Billion expansion of bulk billing and nearly $700 million to reduce the cost of most of the medicines on the Pharmaceutical Benefits Scheme by about $6 per script. Retirees with concession cards have script prices frozen at $7.70 already.
Wealth
Whilst not announced, there is widespread reporting of a further 12-months freeze on the deeming rates, the method with which Centrelink assesses your financial assets for eligibility for an Age Pension. These rates were frozen during the Covid Pandemic and remain at an all-time low for a year longer now. Assuming this is correct, it is a ‘biggie’ as, with rates at 0.25% (lower) and 2.25% (higher), most Age pensioners are ‘deemed’ to earn much less than they actually do on shares, savings and super balances.
Housing
While not aimed specifically at retirees, the expanded ‘Help to Buy’ Scheme could help older Australians who struggle to achieve enough for a deposit for their own home.
Energy
A universal $150 discount will be paid quarterly until end 2025. And the good news is that you don’t have to do anything to get this rebate , your supplier applies this discount to your bill. But it’s worth keeping an eye on your energy statements to ensure that this does happen.
Aged Care
Pay rises for Aged Care workers (as previously determined by the Fair Work Commission) will be delivered, providing more capacity to our under-pressure aged care system.
Most of the above measures were selectively released to the general media in the weeks prior to the 25 March Budget announcements. But there was one sneaky surprise that Treasurer Jim Chalmers saved for his big night. This was a modest tax cut for all workers. If you are still working and don’t need the extra dollars, using this money to salary sacrifice more into your super could be a smart idea.
Is this a ‘good’ budget overall?
Given Australia has slipped back into deficit, there was never going to be a major pre-election spending splurge. The reported deeming announcement gives some security to the 2.6 million or so Australians who are receiving the Age Pensions. As noted above, the rates remain well below what retirees can actually earn on their financial investments, so it’s a great ‘free kick’.
What would have been helpful, had the spare funds been available, is an increase in the base rate of the Age Pension – a rate which has not been altered since PM Kevin Rudd increased it during the Global Financial Crisis of 2007. That’s a long way back and it’s fair to argue that, despite twice yearly indexation, the value of the full Age Pension has been severely eroded since that time, particularly for renters.
And then there’s the vexed issue of Commonwealth Rent Assistance which, despite yesterday’s planned increase, remains far too low for those on government benefits to find secure and viable accommodation.
Enough from me, over to you…
Which measures in the Budget do you most appreciate?
And which would you give the thumbs-down?
Kaye Fallick is a writer and best-selling author. She is also the founder and former publisher of the YourLifeChoices website, which she believes gave her a 20-year ‘apprenticeship’ in learning the health, money, and life stage dramas and concerns of Australian baby boomers. She’s an advocate for Australians over the age of 60, and we are delighted to have her on board, writing content for you. If you’d like to know more about Kaye, you can visit her website, Staying Connected.
Fallicks figures are not correct regarding the pension increases since Rudd; from memory there were two substantial rises one was $38.90 for singles in 2022? I can’t remember the other one about $23 I thought and they are different than the usual $7 x2 twice a year.
As for the $150 energy relief, too lazy to sort the wheat out from the chaff and a lot will be going to rich people who don’t need it which could have meant double for the poor. And do Queenslanders need it, I believe they are already getting a huge discount on electricity from their govt.
As for the tax cuts for workers, $5 a day, I know every bit helps but this is laughable even worse than the last one.
One last improvement would be to get the 700.000 bludgers off the NDIS, this scheme should be only for severely disabled, not for every second kid on a spectrum or autistic for those there should be special schools.
I think the increases you are referring to were standard indexation increases not actual increases.
The $38.90 increase was due to regular indexation ,( the six mths number was 3.5% at the time). It wasn’t a one off increase, the unemployed and renters both saw one off increases but pensioners increases have only gone up due to indexation.
Eligibility for NDIS is a touchy issue. It is supposed to be a program designed to allow people with disabilities to lead a “normal life” whatever that is. The higher the level of disability the higher the level of assistance that is avialable.
From detailed knowledge of a person included in NDIS and they are certainly not a bludger (they receive a Centre Link pension and barring a major miracle will remain so for life). However the accountability controls are very weak and I suspect that significant savings could be made by improiving the accountability of expenditures.
👍🏽
Compared to the people trying to survive on Newstart you’re on a pretty good wicket, Todd. And compared to anyone who qualifies through all of the hoops required from the NDIS, you’ve likely lived a life many of them would envy. Your attitude of ‘why are others getting something but I’m not’ does you no credit at all.
What’s in it for pensioners can be summed up in 1 word “nothing”
Correct..
I agree.
I agree with Tood re the amount of money going into the NDIS. Most people applauded it’s introduction thinking it was going to help families with severly disabled family members but there are now so many people on it and there appears to be no controls on how much NSIS providers are allowed to charge for services and equipment.
There is little or nothing in this budget for pensioners. Labor has become like the LNP and has stopped looking after the aged and infirm properly.
The latest indexation rise of about $2 a week to cover price increases over the past six months is a cruel joke on every pensioner because the reality is way different.
Pensioners should all be putting the ALP and LNP last this election. There are a lot of other choices to give your first preference to in most electorates some of whom are actually human.
DOES anyone know of any lobbies who say if they get in they will start to look after the elderly pensioners actually catch up to the true ammount pensioners should have received over the years
if their is one all people over 55 should vote for them that would be over %30 of the votes to start with
The increase in my part pension is really fantastic! I can buy a coffee each week with it – no, not one from a cafe but one from 711 which costs $2. Like I said, a fantastic increase! However I’ll be able to feel good when I see our parliamentarians going to expensive restaurants to spend just a small fraction of their next pay increase. I’ll salivate at the thought of it.
Why do politicians hate pensioners so much, there is absolutely nothing in the budget for pensioners, the increase in the pension will not touch the sides of the increase in cost of living, and yet money is been thrown at other members of the community, this is an election budget, and don’t think the opposition will be any better.
It is shameful Jim..
They don’t rally hate us. They just find us an convenience and probably have an unwritten policy of ensuring pensions become increasingly smaller in real terms while being able to say, “We increased the pension paid,” and hoping we’ll just fade away with increasing poverty.
Deferring the deeming will help and I hope we get another12 months.
My memory is that the Libs altered the rate of pension reduction by 100% for those on a part pension.
That caused considerable hardship.
I worry that the amount of admin under the new Agedcare act is going to overwhelm the Aged care homes
$150 off the energy bill is the extent of this budget for me. However, having had the amazing increase of $3 per fortnight on my pension, my health care fund has just raised my premium by $12.06 per month = $144 per year. So I’m $6 better off for the year. However with food prices increasing almost daily and no guarantee that energy prices won’t go up again in the next 12 months not only am I worse off than three years ago, I’m going to be worse off again over the next three years. HipHipHooray Mr Chalmers Whoopeedo. Time for you to go.
I get the reduction in energy bills. As a self funded retiree I fail the pension test so there is nothing for me.
Why are the electricity rebates for everyone? Labor is meant to be a party that support the working class and most disadvantaged but Albo and the rest are doing nothing, and the libs are no better. My advice to current labor is that they need to get back to their roots and stop playing populist politics and putting themselves first instead of those who put them into office. Disgusting
I just looked up our increase which will be $3.62 each. Thanks but no thanks.
Whilst I understand that deeming rates will effect a % of pensioners, there are many of us who can only dream of an investment that could be ‘deemed’. Those of us in that category can only look at $150 energy supplement, because there’s absolutely nothing else of benefit.
I received $5.40 per fortnight – $4.60 + .80 for rent assistance – what a joke!
My phone bill has just gone up by $10 per month (due to parent company increasing their prices), and then don’t get me started on increases in insurance (car, CTP, Contents, Health), food, fuel, and rent (due in August, and probably going up by around $10-20 per week, and it hasn’t gone up in the past 12 months, so I’m expecting it to now).
I don’t drink alcohol, smoke, or gamble by choice, so how am I supposed to ‘stretch’ my budget any further, with nothing to do it with?
I keep a very tight reign on my spending, and haven’t purchased ‘new’ clothes or shoes for many years just because I can’t afford it, (except underwear). It’s getting to a point now that I have to purchase new clothing as I’ve recently lost a lot of weight, and I’ve had to go from 26 to 22 in pants (thank goodness I had the 22s from the 1990s, and hadn’t worn them, and even they’re ‘falling off me’.
How can I get ‘blood from a stone’ when the stingy federal government – both sides – won’t give me any more to ‘live on’? I have no super (left last full-time job in 1992, have been on the DSP, and now Age pensions since, so no savings to speak of, and certainly no super. Don’t we have the same costs in insurances – going up all the time, even though I don’t drive as far as most, registration (free Services NSW end, but still have to pay for CTP, roadworthy, servicing), food, fuel as other ‘regular’ Australians? Of course we do, but no one will acknowledge that!
I receive per FORTNIGHT approximately 27% of what the Total Average WEEKLY Male Earnings are – how can this be fair? It’s certainly not, and until we can get a ‘proper’ increase in our pensions, we’ll always be ‘on struggle street’.
The National Seniors Australia, in their proposal to the government for the next budget suggested that ALL pensioners receive a $10/15 per day increase in our payments ‘just to keep up with the everyday increases in our expenses’ – where’s any consideration for this? Even a $5/7.50 per day increase would have been something!
Source: NSA-2025-26-Federal-Budget-Submission.pdf, pages 5, 7 & 8.
We live in community housing and our rent relief given to us by the commonwealth government is taken away by the south Australian government. We don’t see a penny of it. But they look after the pensioners they say. I would have to disagree. That extra money would be so helpful.
Exactly, Sue. So many of us are rapidly becoming worse off. Perhaps we should join a religious group such as Morrison’s Hill Song and the good lord above may then provide for us as our government doesn’t. Just joking about that as one has to maintain a sense of humour if nothing else.
There was basically nothing in this budget for pensioners. The basic pension rate is now alarmingly low and the rent assistance support is out of touch with housing prices – I couldn’t afford the rent in a major city.
The other thing that really irks me, as I work part time, is losing 50c in the dollar after the first $300 earnt. I need the money and am now working for $15/hour – pathetic. The government touts the Work Bonus scheme, but this actually the NOT Work Bonus scheme as you only earn credits when not working – seems to be an negative incentive to work.
Tend to agree.
This govt (and the lib opposition) are looking out for themselves and their fat wallets. I like suggestions by the Greens to fix the tax system: currently one in three companies pay NO tax in this country and if that were to be fixed then there would be more money in the budget to adequately fix Medicare (including the possibility of adding dental to it), give those on income support a meaningful increase. Neither party want to tackle the difficult issues – isn’t that why we vote them into office?
The only sure fire way to fix energy prices is to bring them back into govt hands, all these rebates do is nibble at the edges and the power companies get rich off the back of it and push prices higher still. A couple of years ago, the wholesale price for electricity fell by 70% but prices actually went up by 15%; if the assets (for which is an essential service) were in govt hands then they could set the price and not be dependent on external factors but again neither party want to make that tough call.
Time the two party system was dismissed and a third force showed how things should be done. I have high hopes for the Greens because at the moment both parties aren’t looking after those who vote them into office in the first place.
God help us all if ever the Greens got in power.
They won’t, but it would be very good if the 2 major parties would include some of the Green policies in their policies and then we might all be somewhat better off.
Single pension rise $2 extra a week won’t buy a loaf of bread + $150 for energy, already paid for in electricity rising higher rates. What an insult to Pensioners. Politicians want to live in the real world and get their heads out of the sand. Everyone has to pay tax.!!! 🤔
It seems that many have never lived in the real, hard world and those who have experienced some of it usually come to forget as to what it was like.
As I have said before, all companies earning money (Profit) in Australia should be paying their fair share of tax. Thos would bring millions or billions of dollars into the Gov coffers which would then allow the Gov to give pensioners and others a fair share of the dollars to help with their daily struggle of trying to live comfortably.
I Ma a part pensioner and cannot see one item in this budget that will benefit our situation. We are already Bulk Billed. Receive $7.70 prescriptions.
The raising the upper limit does not help me nor the deeming rate hold. We are part Pensioners so racing the lower limit would have been beneficial. Labor has not Improved the Pensioners situation in this country at all in 3 years. The cuts to Electricity are required for Pensioners but who cares when the earn large salaries, that money could have been used for Pensioners or at least reducing the Crippling Debt we are facing. A Big Thumbs Down from me
I agree with a lot of the commentary above. However, the LNP will do even less for us, if that is possible. Pensioners are deemed to be of little to no value to society and when it comes time for many to go into aged care, they become virtually non existent. I visit old folk in aged care each week and 90% of them do not get visitors. Any increases us is silently considered a drain on the public purse.
In fact, us Boomers are considered to have amassed great wealth in our lifetime so we don’t need any help…yeah, right. I know a number of grandparents and parents that are regularly handing out to their adult children and some still have them hanging off their financial coat tails well into their adulthood.
We will never be treated fairly so I try not to dwell on the unfairness of the system. These days we live in a society that demands handouts, lots of them, and there are always new additions permanently added to the list, none of which benefits pensioners. The wealthy, who are never satisfied with the number of levers they can pull to add to their overflowing coffers e.g. Negative Gearing, want it all. This is why governments tow the line of populist politics; it is all about being re-elected…nothing more. The one thing I know for certain is that the LNP has not done, and never will do, anything to help the folk who are average income earners or the retired who are not ‘well heeled’ in our population.
And what has Albo and his cronies done for the pensioners. I have just received an email advising that my gas charges will be going up by 30% in July because of their stupid renewables push. I have already compared the “market”, and this is the lowest increase. This is on top of the increases in electricity each year. So, don’t just blame LNP, Labour, Greens and Teals are just as bad.
When it comes to pensioners, as I said, we are not genuinely considered at all and never will be.
I’m self funded so nothing in the budget for me. However, if the government cut back on the middle class welfare payments such as rent assistance for those who have paid a high price, $700,000 and upwards past $1.5m for levies in land lease properties in over 50s resorts there would be a lot more available to those who really need it for genuine rental assistance and more homes for the needy.
Age pensioners (full and part) are condemned by both major parties to become increasingly poor. Any “increase” never even catches up to the increasing prices let along improve our living standards. They do not want pensioners to be comfortable. If only they would ensure that all companies, especially those huge corporations paying no or little tax paid their fare share of taxes, there’d be no problems for paying a decent pension and for many other services for the general population. Australia should be wealthy from the huge amounts of our resources that give the exploitive businesses their enormous and seemingly untaxed profits – we could be just like the rich Middle East countries enjoying the benefits of their oil resources.
The budget was another insult to age pensioners and part pensioners. The so-called paltry increase really represents a decrease in real terms as prices have gone up enormously. We only have to look at insurance costs: house & contents – I have been paying greatly increased premiums each year for the past 3 or 4 years (now about twice more than in 2022); motor vehicle insurance – much the same as with house & contents insurance; Council rates – big increases each year and especially with the “special” rate increase the state allowed our local council to charge – 21% more and thank goodness it wasn’t the 50% the council wanted. Together, these insurances and rates consume about 45% of my total annual part pension. Then comes things such as Extras cover in health insurance – sizeable increases each year (10% of pension); specialists fees with 4 visits to one annually taking up more than a fortnight’s part pension and it is an extra $20 per visit this year being an increase of approx 14%; dental expenses to carry out checks and paying the gap for ever increasing fees for expensive jobs such as fillings or recently a crown replacement; petrol – being out of towners, we avoid going into town except for essentials as petrol costs chew up a lot of our very limited and spiralling downwards funds. To think these are just a few items.
So the increase I’ll be getting will be less than the $4.60 – it won’t buy a cup of coffee in a cafe (not that I ever do) but it will buy me a $2.00 coffee from 711 and perhaps a little left over to put towards the next fortnight’s cup.
What an insult!
Interesting that I couldn’t find one reply saying “thank you” to our government for even providing a pension in the first place! Many countries don’t have this luxury – you work until you die, end of story.
And while we would all like larger increases, at least the pension is indexed twice a year, so we don’t fall as far behind as we would otherwise. Imagine if we still only got the same dollar value as we did 20 years ago! Or even 10 years ago.
Be thankful for small mercies, I say.
Countries who do not have pensions also do not have high taxes. We pay high taxes all our working life to in part cover a pension in retirement as compensation. The value of this is constantly reducing since indexation does not consider many rising costs.
The reason we get treated so badly (pensioners) is because we are not long-term voters.
there is nothing in this Budget for me, I’m a Part Age Pensioner who has just received a small fraction of the paltry increase in the inadequate single Age Pension.
I will also receive approximately $10 per fortnight with the changes in Tax Rates and Brackets.
Putting both of these increases together, they do not compensate me for the out of pocket expenses incurred due to the rise in cost of living over the past 6 months, and definitely will not cover the cost of living increases over the next 6 months.