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Delivering on pension reform

The Government is reforming the pension system to improve pension adequacy, make its operation simpler, and ensure its sustainability into the future.

The global financial crisis is a timely reminder of the importance of an adequate safety net for older Australians.

Australia's pensioners have been instrumental in building our nation through tough times and good. They need and deserve a pension system that provides them with adequate financial support and security.

The Government is delivering on its commitment to reform the pension system, to provide greater financial security to Australia's 3.3 million age, carer, disability, war widow/ers and service pensioners.

The Government's $14.2 billion pension reform package will:

  • ensure that pensioners receive an adequate level of support, with a minimum payment increase for all pensioners and greater ongoing certainty about payments
  • make the pension system simpler to understand and more flexible, so that pensioners can plan and budget more effectively and securely
  • build a pension system that is sustainable, both now and into the future.

The reforms are principally focused on addressing the inadequacy of the single pension. Tough decisions have been necessary to ensure the pension system is sustainable and provides an adequate safety net for all Australians into the future.

The package will also provide additional support of $1.8 billion to Australia's 500,000 carers, recognising the important role they play.

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