Millions of Australians to get pension increase starting March 20
March 7, 2011 3:18 PM EST
Over three million Australians will receive an increase in their pensions to help meet increases in the cost of living, the government has announced.
From 20 March, age, disability and carer pensioners, and veterans’ income support recipients will receive an extra $13.20 a fortnight for singles on the maximum rate, and $19.80 a fortnight for couples combined on the maximum rate. This March pension indexation increase is driven by wages growth in the six months to November 2010.
Following these increases, total pension payments for those on the maximum rate, including the base rate and pension supplement, will be $729.30 a fortnight for singles, and $1,099.40 a fortnight for couples combined.
These pension rises deliver on the Gillard government's commitment to improve support to older Australians, the government said.
In September 2009, the government delivered the most significant reforms to the pension system in its 100 year history. These reforms delivered pension increases, a new pension supplement, a pension Work Bonus and a new indexation system.
These important reforms made the system sustainable for the millions of age and disability pensioners, carers and veterans who depend on it.
Since the reforms began in September 2009, the pension has increased by $128 per fortnight for singles on the maximum rate and $116 for couples combined on the maximum rate.
The rate from September 2009 includes the base pension and Pension Supplement. The rate prior to September 2009 includes the fortnightly value of Pharmaceutical Allowance, Utilities Allowance and Telephone Allowance (at the internet rate).
Under the government’s historic reforms, pensions are indexed twice a year to the highest increase of two measures: the consumer price index (CPI), and the pensioner and beneficiary living cost index (PBLCI).
Pensions are then compared to the male total average weekly earnings (MTAWE) benchmark and are increased if necessary to bring them in line with MTAWE.
The Government's pension reforms also increased the MTAWE benchmark for singles from 25 per cent to around 27.7 per cent of MTAWE.
From 20 March, a further one million Australians will also benefit from increases to income support payments such as Newstart and Parenting Payment. Rent Assistance will also increase.
Pensioners will begin to benefit from the increased pension rates on their first payment date after March 20 this year.
To contact the editor, e-mail:
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
Join the Conversation
- Iran Leader Asks Muslims to Supply Arms to Palestine, Calls Israel ‘Rapacious Wolf’
- El Niño Update: 2014 Threat Easing, ‘Unlikely to be a Strong Event’ – Australia BoM
- “Women should not laugh in public” - Turkish Deputy PM says
- Australia Asked National Media to Suppress Multi-National Corruption Case: WikiLeaks
- Opinion Poll in New Zealand Shows National Party Far Ahead in Popular Support
- Samsung Galaxy S5 Alpha Leaks Online: Release Date, Five Features to Wait for New Smart Phone
- Photos of Motorola Moto X+1 Prototype and Specs Leak Online, Release Date, Four Fresh Features Revealed
- Freshly Leaked Apple iPad Air 2 Cases Confirm Touch ID Sensor; Release Date, Limited Specs and Price Listed
- Sony Xperia Z3: Release Date, Five Features to Expect from New Android Smart Phone
- Moto X Android 4.4.4 KitKat Update Guide: Schedule and How to Install
- Top Surprising Features Of iOS 8
- Top 4 Reasons Why iPhone 6 Will Hit Big Soon After its Sept 2014 Release Date