Boost for pensioners’ pockets
September’s increase will help seniors playing catch up with cost-of-living increases.
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National Seniors Australia has long advocated for a better deal for pensioners.
Under our Fix Pension Poverty campaign, we are calling for an increase to the Commonwealth Rent allowance, a dedicated seniors dental scheme, and a targeted Pensioner+ concession card.
Our Fairness in Retirement Income recommendations include the Let Pensioners Work campaign, focusing on the aged-care sector, and our call for a universal basic pension, doing away with means testing, deeming, and taper rates, which complicate the retirement planning of millions of Australians.
The September 2024 pension adjustment is expected to lift the Age Pension by $28.10 a fortnight for singles and $42.40 for couples.
This will come as some relief for pensioners who have been struggling through the cost-of-living crisis.
The Age Pension, Carer Payment and Disability Pension go up in March and September each year, with the usual practice of applying the higher of the Pensioner and Beneficiary Living Cost Index and the Consumer Price Index (CPI).
The pension is therefore likely to reflect the 2.6% increase in the PBLCI over the past six months, rather than the 2% increase in the CPI.
The new amounts are expected to be:
Single or couple separated due to ill health
- Current maximum fortnightly payment: $1,116.30
- Expected maximum rate from September: $1,144.40
- Increase: $28.10 a fortnight
Couple combined rate
- Current maximum fortnightly payment: $1,682.80
- Expected maximum rate from September: $1,725.20
- Increase: $42.40 a fortnight
While the new rate comes into effect on 20 September, the way the payments are calculated and paid means that the first payment after this date may not reflect the full increase.
A CPSA spokesperson told The Senior, “This is a definite improvement on the 1.8% increase we saw in March 2024, but unfortunately the higher number reflects increases in the cost of living.
“As things are, those who rely on income support payments are forever playing catch-up with inflation as indexation only occurs once every six months, based on price increases that have already happened.”
The pension rise follows changes in the income test which put a little more money in some pensioners’ pockets in July. Details on the test, which allow earnings of $212 a fortnight for singles and $372 a fortnight for couples without affecting the pension, are here.
While this increase is yet to be confirmed, it is likely to be followed by similar boosts in March and September next year, given the Royal Bank of Australia has indicated its inflation target for the foreseeable future will remain in the 2-3% range.
Related reading: CPSA, The Senior, Services Australia
