Pensions increase with inflation rate from 20 March

Nearly five million people will get a small rise in their pensions or government allowances from 20 March as part of the twice-yearly indexation.

Social Services Minister Christian Porter said the 1.3 per cent increase reflected the Consumer Price Index (CPI) over the six months to December 2016.

The Age Pension and Disability Support Pension will lift by $11.20 a fortnight, bringing the maximum single rate to $888.30 a fortnight.

The rate will rise by $16.80 for a couple combined to $1,339.20 (including Pension Supplement and Energy Supplement).

“Adult rates of pensions and allowances are adjusted twice a year, in March and September,” Mr Porter said.

“Pension increases are linked to prices and wages, while allowance increases are linked to the Consumer Price Index. These increases help pensioners and allowance recipients keep up with increases in living costs.”

The maximum partnered rate of pension will increase by $8.40 to $669.60 a fortnight for each member of a pensioner couple.

Recipients of Rent Assistance may also benefit from the indexation increase – with the maximum rate of rent assistance for single income support recipients with no children rising to $132.20 per fortnight.

The maximum rate of Rent Assistance for family payment recipients will increase to $155.26 per fortnight for families with one or two children and to $175.42 for families with three or more children.

Some income and assets limits will also change as result of indexation, including pension assets test limits, up by $3,750 for singles and by $5,500 for couples, meaning recipients can have a higher level of assets before being disqualified from the pension based on the assets test.

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