Largest Increase in Age Pensions in Australia

Overview

The largest payment rise for retirees over age 60 in 12 years. More than 4.7 million Australians will see an increase in their social security benefits starting on September 20.

The rise is anticipated to relieve some of the pressure caused by rising living expenses. The fortnightly increases for the Age Pension, Disability Support Pension, and Carer Payments are $38.90 for singles and $58.80 for couples. With the addition of the Pension Supplement and Energy Supplement, the maximum rate of pension for singles will rise to $1,026.50 per fortnight and to $773.80 for each retiree pair, for a total of $1,547.60 per couple. In line with the most recent headline inflation rate of 6.1%, the biannual increase for a single pensioner represents an increase of 6.1% from the payment made in September 2021. Food and non-alcoholic beverage inflation increased by 5.9% annually, while transportation inflation increased by 9.0%. The highest indexation boost to payouts in more than 30 years for allowances and 12 years for pensions, according to Minister for Social Services Amanda Rishworth.

Minister Rishworth said, “We want to ensure Australia has a strong social security safety net to protect our most disadvantaged. Our guiding principles as a Government are ensuring no one is left behind and no one is held back and this indexation increase will help those on Government payments keep up with the cost of living.”

There will also be an increase in the JobSeeker Payment, Parenting Payment, ABSTUDY, and Rent Assistance. The JobSeeker payment for single adults without children will rise by $25.70 every two weeks to $677.20 with Energy Supplement. The Parenting Payment Single will rise by $35.20 every two weeks, bringing the total to $927.40, including the Pension Supplement and Energy Supplement. The Partnered JobSeeker Payments and Parenting Payment will grow by $23.40 every two weeks, bringing the total to $616.60 with Energy Supplement.

Edwina MacDonald, acting CEO of the Australian Council of Social Service (ACOSS), said, “Young people will somehow have to cope with skyrocketing cost of living on a payment that doesn’t cover average rents let alone everything else. It does not deliver a real increase above inflation, and that is what people on JobSeeker and other payments need to keep a roof over their head and put food on the table.

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The increase in pension benefits was primarily driven by increases in the consumer price index, which outpaced increases in the pensioner and beneficiary living cost index. In order to protect people from unfairness, some income and asset limits will also change as a result of the payment rate indexation; these changes will take effect on September 20. Depending on the demographic, asset restrictions have increased by between $13,000 and $24,500. This occurs at the same time as the Jobs and Skills Summit saw the introduction of a new government policy that would grant senior pensioners a $4,000 one-time income credit.