With the rising cost of living and inflation, the Australian government has announced an increase in various welfare payments, including the Age Pension, Veteran Payment, Disability Support Pension, and Carer Payment. Effective.
These payments will receive a boost through indexation.
Under the new adjustments, the maximum rate of the single Age Pension will rise by $32.70 per fortnight, taking it from $1064 to $1096.70. Similarly, for couples, the combined payment will increase by $49.40 per fortnight, from $1604 to $1653.40.
While this increase is welcomed by those relying on the Age Pension, National Seniors Australia Chief Advocate Ian Henschke highlights that pensioners are still lagging behind, particularly during times of high inflation.
“39 per cent of older renters told us they were experiencing severe cost-of-living impacts compared to only 11 per cent of older homeowners,” he said.
Additionally, several other government payments will also see an increase in line with the announcements made in the May Budget.
Single JobSeeker Payment recipients will now receive a base payment of $749.20 per fortnight, reflecting a $56.10 increase. JobSeeker recipients aged 55-59, who have been unemployed for more than 9 months, will experience a payment increase of $96.10 per fortnight.
One notable change is the 15 per cent increase in Commonwealth Rent Assistance. Single renters will see their maximum rate rise by $27.60 to $184.80 per fortnight, while couples will receive an increase of $26, bringing their rate to $174.
This change is seen as a positive step, although Mr Henschke emphasises that more needs to be done to support renters, citing the financial struggles faced by pensioners paying high rents.
“We recently heard from a couple paying $920 a fortnight in rent. As pensioners, this leaves them with only $907.40 a fortnight to pay for food, fuel, utilities, and other expenses.”
Furthermore, income limits for eligibility for the Commonwealth Seniors Health Card will be raised. Singles can now earn up to $95,400 per annum, an increase of $5,400, while couples can earn up to $152,640, a rise of $8,640. This adjustment, coupled with frozen deeming rates for two years, may result in more self-funded retirees becoming eligible for concessions.
Mr Henschke urges the government to provide additional targeted support for individuals with limited means and to reconsider the income test rules for pensioners who wish to work.
“We want a change to income test rules for pensioners who want to work and work more. This could be achieved by reducing the taper rate from 50c to 32.5c in the dollar to align with the tax system. It’s simple, fair, will help solve critical workforce shortages, and boost the budget bottom line.
“We will continue to fight for a system that improves people’s lives,” he said.
