Delivering a fair go for pensioners and a sustainable system

Supporting seniors, carers and those with disability

The Government is delivering an extra $32.49 per week to full rate single pensioners and $10.14 per week combined to couple pensioners, in conjunction with revised income test arrangements to better target the pension to those most in need.

The new pension package for singles will be two‑thirds of the couple combined package — up from 60 per cent. An increase in the single base pension of $30 per week will achieve a new legislated benchmark for singles of 27.7 per cent of Male Total Average Weekly Earnings, up from 25 per cent. These are both 10 per cent increases.

Simplifying the pension

The Government will combine existing allowances into a new fortnightly Pension Supplement. Singles will also receive an extra $2.49 per week through this new supplement, and couples $10.14 per week combined.

Recognising carers

To provide additional support to carers, the Government will introduce a permanent Carer Supplement of $600 per annum for Carer Payment recipients and $600 per annum for Carer Allowance recipients for each eligible person in their care.

Changes to the income test

To better target the pension to those most in need, from 20 September 2009

the Government will increase the rate at which the pension is withdrawn from 40 to 50 cents for each additional dollar of private income. More than 70 per cent of existing pensioners will be better off immediately under the new arrangements, which include extra assistance for all full‑rate pensioners.

Some part‑rate pensioners will gradually transition to the new arrangements when they provide a better outcome for them. These pensioners will receive an increase in their entitlements of $10.14 per week (singles and couples combined). Their existing payments, plus the $10.14 per week increase, will be maintained in real terms until they are better off under the new arrangements.