The Australian Government is introducing a number of changes to the pension system, as part of the Secure and Sustainable Pension Reforms. Most changes come into effect from the 20th of September 2009.
The full single pension will increase by $65 a fortnight. This includes an increase of $60.00 a fortnight in the base pension and $5.00 a fortnight in the new Pension Supplement.
The pension for couples will rise by $20.30 cents a fortnight, combined, regardless of their income or assets.
Part-rate single pensioners will receive a partial increase, depending on their income and assets.
And the good news is, these increases are in addition to the regular indexation of pensions.
As well as the increase in the pension rate, eligible customers will also begin to receive a new Pension Supplement. I’ve spoken to many people who will be affected by the changes, and I know some people are concerned about this significant change to the way Centrelink pays supplement payments and allowances.
The Pension Supplement is a all-in-one payment which combines the:
• Pharmaceutical Allowance,
• Utilities Allowance,
• GST Supplement, and
• Telephone Allowance, at the higher Internet rate.
The Pension Supplement will be paid fortnightly, and retain the full value of what you receive at the moment plus an increase. It will appear on your Centrelink statement in addition to the fortnightly pension.
In the first payment after the 20th of September 2009, you will receive the final quarterly instalments of Telephone Allowance and Utilities Allowance.
You will also get the first fortnightly instalment of the Pension Supplement. There is a slight overlap, but this is deliberate.
There is also a new Seniors Supplement.
The Seniors Supplement combines the Seniors Concession Allowance and Telephone Allowance (at the higher Internet rate).
The Seniors Supplement will be paid to holders of the Commonwealth Seniors Health Card, and some holders of the Department of Veterans’ Affairs gold card.
The Seniors Supplement will be paid quarterly, with the first payment made from the 20th of December 2009.
There will be no reduction in payments. The full value of all current add-on payments will be retained and increased.
