Living payment to be cut

The Abbott Government introduced legislation this week to abolish the Income Support Bonus, a tax-free payment which came into effect earlier this year to help people prepare for unexpected living costs.

If the legislation is passed, over 50s on the Newstart Allowance will lose the payment.

The Income Support Bonus provides $210 extra a year for single people and $350 extra a year for couples, to assist them in meeting unforeseen costs like medical expenses or car repairs.

National Seniors will keep its members informed of the legislation.

The scrapping of the income support bonus was announced as part of the Minerals Resource Rent Tax (MRRT) Repeal Bill.

Note: The Clean Energy Supplement (the compensation payment through the Carbon Tax) is not affected by the changes to the Income Support Bonus. People will continue to receive the Clean Energy Supplement payment through their pension or other income support payment.

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