Age Pension payment changes
Pension indexation and deeming rate changes from 20 September will see pension payments up, down, and steady depending on your circumstance.
Despite the hubris about the election being a wipeout, it’s critical to understand the context of the recent Labor victory.
It did not come on the back of a popular leader, nor on a popular government, but instead an Opposition mired in the politics of another country. Much like Canada, which saw a reversal of fortunes for a Liberal government that was expected to lose only months prior to its own election, Australian voters backed away from change at a time of global uncertainty, faced with an Opposition that failed to sell itself as an alternative.
The campaign was always one for the Opposition to lose, and unfortunately for them, that’s exactly what happened. The large scale of the defeat has meant that opportunities for increased policy debate, which a hung parliament would have imposed, have been diminished.
Labor’s majority in the lower house will give it the power to pass bills through the House of Representatives. However, because all legislation needs to pass the Senate, there are still opportunities for debate and negotiation. To pass legislation, Labor needs 39 votes of the 76 seats, which it can do via either the Liberal/National Coalition or the Greens.
Projected Senate seats in the next parliament
• Labor – 28
• Liberal / National Coalition – 27
• The Greens – 11
• Minor parties – 10
The question for Labor is whether it is willing to listen and work with civil society organisations, like National Seniors Australia (NSA), to develop policies that have the best interests of voters. We would argue that this is the best way for Labor to pass good legislation, because it will ensure its decisions have buy-in from the electorate. As a peak body, we ensure that our policies are designed to achieve better outcomes for older Australians.
Our hope is that Labor will see the benefits of being more, not less consultative, over the next term of parliament.
Prime Minister Anthony Albanese’s ministerial reshuffle has seen the creation of a Cabinet-level Ageing portfolio and the appointment of a new Minister for Aged Care and Seniors. Existing Health and Aged Care Minister Mark Butler’s role has been adjusted and expanded—he is now the Minister for Health and Ageing, Disability, and the National Disability Insurance Scheme (NDIS). Replacing ‘Aged Care’ with ‘Ageing’ is a subtle but important difference.
National Seniors Australia (NSA) has long called for a Minister for Older Australians and welcomes the recognition of Ageing and the addition of responsibility for Seniors to the Aged Care ministry. “NSA is pleased to see Ageing recognised in Cabinet through the change in Minister Butler’s title to encompass Health and Ageing,” NSA Chief Executive Officer, Chris Grice, said. “We hope this change signifies that government understands the importance and needs of an ageing population.”
“There are many issues facing Australians as they age. Many experience ageism, barriers to mature age employment, elder abuse, poverty, and homelessness, which require government support and intervention.”
In a statement issued after the ministry announcements, Mr Butler said, “Our task is crystal clear: to strengthen Medicare, protect the PBS, deliver generational reform to aged care, and secure the future of the NDIS.”
NSA believes a key focus for Mr Butler should be a full review of the private health system to reduce health insurance premiums and out-of-pocket costs. It should also work with state and territory governments to improve the interface between hospitals and aged care to reduce hospital ramping and speed up access to aged care services.
New Aged Care and Seniors Minister, Sam Rae, is the Member for the seat of Hawke in Victoria. He has replaced Anika Wells, who is now Minister for Communications and Sport. Mr Rae will have a big job managing the introduction of the new Aged Care Act and Support at Home program on 1 July 2025—a timeframe that providers have labelled problematic.
NSA will be calling on the new minister to prioritise reducing wait times for home care services to three months and will continue to scrutinise the reform process, providing advice through our participation in various aged care consultations and working groups.
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First-time Tasmanian MP Rebecca White, the former leader of the Tasmanian Labor Party, will be the Assistant Minister for Health and Aged Care, Indigenous Health, and Women.
Former Environment Minister Tanya Plibersek is now the Minister for Social Services, giving her responsibility for delivering government services, including the Age Pension, through Services Australia. Her first challenge will be the potential end to the freeze on deeming rates from 1 July 2025—a change that could cost pensioners thousands of dollars (click here to find out how much), a move NSA strongly opposes.
With many older people regularly interfacing with Services Australia and Centrelink, NSA will seek to improve and streamline Age Pension systems and processes. Ms Plibersek will be supported by Ged Kearney as the Assistant Minister for Social Services and the Assistant Minister for the Prevention of Family Violence.
Dr Jim Chalmers continues as Treasurer, with Senator Katy Gallagher as Finance Minister, and Dr Daniel Mulino as Assistant Treasurer and Minister for Financial Services.
NSA will continue to pursue its call to protect superannuation and improve the retirement income system, including a continued freeze on pension deeming rates and the establishment of an Australia Post Bank.
We will also be closely watching the implementation of the cash mandate, which is due to come into effect on 1 January 2026, as part of our Keep Cashcampaign.
Dr Andrew Leigh is now the Assistant Minister for Productivity, Competition, Charities and Treasury. NSA will continue to advocate for the Productivity Commission to pursue urgent reform of private health insurance to lower premiums and reduce health care costs for older Australians.
Matt Keogh will continue in his role as Minister for Veterans’ Affairs and Defence Personnel.
The Liberal Party has elected Sussan Ley as leader, with Ted O’Brien as her deputy. Ms Ley, the Member for Farrer in southern New South Wales, becomes the first woman to lead the Liberals since the party’s inception in 1944. David Littleproud remains Nationals leader after an unsuccessful challenge from Senator Matt Canavan.
Parliamentary Friends of Seniors co-chairs Dr Mike Freelander (Labor) and Rebekha Sharkie (Centre Alliance) were both re-elected, as was Bob Katter (Katter’s Australia Party), who turned 80 on 22 May and remains Father of the House. Another friend of seniors, Senator Richard Colbeck, also retained his seat.
NSA looks forward to working with the Federal Government, Opposition, Greens, and all MPs and senators as we continue our advocacy on behalf of older Australians, including those involved with the Parliamentary Friends of Seniors.
This article is featured in National Seniors Australia’s quarterly member magazine, Our Generation.
Become a member today and receive a yearly subscription to Our Generation digital magazine as part of your membership, along with exclusive discounts, competitions, branch access and more!
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