6 September 2010
Senator for NSW, Ursula Stephens, today said that pensioners across Hume will soon benefit from a boost to their pensions.
Due to indexation, around four million Australians will receive an increase in their pensions and other income support payments from 20 September 2010.
Pension payments will increase by $15.00 per fortnight for singles on the maximum rate, and $22.60 per fortnight for couples combined on the maximum rate.
Following these increases, total pension payments for those on the maximum rate, including the base rate and pension supplement, will be:
- $716.10 per fortnight for singles
- $1079.60 per fortnight for couples combined
Pensioners have received increases of around $115 per fortnight for singles and $97 per fortnight for couples combined in pension payments, as a result of Federal Labor’s major pension reforms delivered in September 2009, and higher indexation in March and September 2010.
During our first term, the Federal Labor Government overhauled the pension to make it adequate and sustainable for the millions of age and disability, carers and veterans who depend on it.
Senator Stephens said that the indexation process continues the government’s commitment to help pensioners meet cost of living pressures.
The September pension rise was driven by movement in the pensioner and beneficiary living cost index in the six months to June 2010.
Pensions are indexed twice a year to the highest increase of three measures: the consumer price index (CPI), the pensioner and beneficiary living cost index (PBLCI), and growth in male total average weekly earnings (MTAWE).
The pensioner living cost index was introduced as an additional indexation mechanism as part of the 2009 pension reforms, and takes into account a basket of goods pensioners buy to better help maintain pensioners’ purchasing power.
Federal Labor’s pension reforms increased the effective benchmark for singles from 25 per cent to 27.7 per cent of MTAWE.
People eligible for the Age Pension, Disability Support Pension (adult rate), Carer Payment, veteran income support payments, Wife Pension, Widow B Pension and Bereavement Allowance will all benefit from the increases.
Parenting Payment and Rent Assistance will also increase on 20 September.
Adult rates of allowances, such as Newstart, and supplementary payments are also indexed on 20 September each year to the CPI increase for the previous six months. Allowance rates for single people (21 or over, without children) will increase by $6.90 per fortnight.
These increases in payments will be accompanied by an increase in the income and assets cut out amounts. This will see an increase in the amount of income, from for example employment or investments, or the total value of assets, a person can have before their benefit is cancelled.
Full details of all indexation amounts are available at www.fahcsia.gov.au
Media inquiries: Senator Stephens office – 02 6277 3333
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