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Indexation delivers increase to Pensions and other Income Support Payments
02/09/2008
Almost four million Australians will receive an increase in their pensions and other income support payments and allowances from 20 September.
Indexation will deliver an increase of $15.30 a fortnight in the maximum single pension and $12.70 in the maximum partnered rate for each member of a pensioner couple.
The third instalment (now $128.50) of the increased Utilities Allowance and the Seniors Concession Allowance (now $514 per annum) will also be paid from 20 September.
With the cost of food, electricity, gas and petrol going up, it's getting harder for people on pensions or allowances to pay the bills.
These measures will provide some assistance to pensioners who are finding it hard to make ends meet.
Adult rates of pensions, allowances and some family and supplementary payments are indexed on 20 September each year, based on the Consumer Price Index (CPI) percentage increase for the previous six months.
This year payments will rise in line with a 2.8 per cent increase in the CPI for the six months to June 2008. This exceeds the 25 per cent of male total average weekly earnings benchmark.
This increase will assist two million Age Pensioners, and others receiving the Wife Pension, Carer Payment, Special Benefit, Disability Support Pension and Veterans Service Pension.
A further one million people receiving payments such as Newstart Allowance, Parenting Payment (Partnered and Single), Sickness Allowance, Partner Allowance, Mature Age Allowance and Widow Allowance will also receive an increase.
Other payments to increase in line with the CPI are the Maternity Immunisation Allowance, the maximum rates of Rent Assistance, Pension Bonus Scheme and certain Concessional Allowances, such as Utilities Allowance, Telephone Allowance and Seniors Concession Allowance.
These increases in income support payments will be accompanied by an increase in the income and assets cut out amounts for these entitlements.
The Rudd Government paid a $500 seniors bonus, a $1000 bonus to recipients of Carer Payment and a $600 bonus to recipients of Carer Allowance in June.
We have also started a comprehensive review into the pension system. The review will report no later than February 2009 and the Government will respond quickly.
The pension increase rate table is attached.
Pensions |
20 September 2008 |
||||
| Adult Pension Basic Rates - per fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
|---|---|---|---|---|---|
| Single | base | $528.00 |
$542.80 |
$14.80 |
|
| supplement | $18.80 |
$19.30 |
$0.50 |
||
| Total | $546.80 |
$562.10 |
$15.30 |
||
| Couple | base | $441.00 |
$453.30 |
$12.30 |
|
| supplement | $15.80 |
$16.20 |
$0.40 |
||
| Total | $456.80 |
$469.50 |
$12.70 |
||
| Pension Disqualifying Income Limits*- per fortnight Family Situation |
|||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single | $1,519.50 |
$1,557.75 |
$38.25 |
||
| Single + 1 child | $1,544.10 |
$1,582.35 |
$38.25 |
||
| Couple (combined) | $2,538.50 |
$2,602.00 |
$63.50 |
||
| For each Additional Child add | $24.60 |
$24.60 |
$ - |
||
| Illness Separated couple (combined) | $3,003.00 |
$3,079.50 |
$76.50 |
||
| * Disqualifying Income Limits include consideration for Pharmaceutical Allowance | |||||
| Pension Disqualifying Asset Limits * Family Situation |
|||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single, homeowner | $540,250 |
$550,500 |
$10,250 |
||
| Single, non-homeowner | $664,750 |
$675,000 |
$10,250 |
||
| Partnered, homeowner (combined) | $856,500 |
$873,500 |
$17,000 |
||
| Partnered, non-homeowner (combined) | $981,000 |
$998,000 |
$17,000 |
||
| One partner eligible, homeowner | $856,500 |
$873,500 |
$17,000 |
||
| One partner eligible, non-homeowner | $981,000 |
$998,000 |
$17,000 |
||
| Illness separated couple, homeowner | $980,500 |
$1,001,000 |
$20,500 |
||
| Illness separated couple, non-homeowner | $1,105,000 |
$1,125,500 |
$20,500 |
||
| * Disqualifying Asset Limits include consideration for Pharmaceutical Allowance | |||||
| Pension Bonus Scheme |
|||||
| Single | |||||
| Years (Bonus Periods) | Previous Amount |
20 Sept 2008 |
increase |
||
1 |
$1,336.40 |
$1,373.80 |
$37.40 |
||
2 |
$5,345.50 |
$5,495.10 |
$149.60 |
||
3 |
$12,027.40 |
$12,364.00 |
$336.60 |
||
4 |
$21,382.10 |
$21,980.40 |
$598.30 |
||
5 |
$33,409.50 |
$34,344.30 |
$934.80 |
||
| Partnered (each) | |||||
| Years (Bonus Periods) | Previous Amount |
20 Sept 2008 |
increase |
||
1 |
$1,116.40 |
$1,147.50 |
$31.10 |
||
2 |
$4,465.70 |
$4,589.80 |
$124.10 |
||
3 |
$10,047.80 |
$10,327.10 |
$279.30 |
||
4 |
$17,862.70 |
$18,359.30 |
$496.60 |
||
5 |
$27,910.50 |
$28,686.50 |
$776.00 |
||
Allowances |
|||||
| Allowance Rates (NSA, WA, PA, SA & MAA) - per fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single, 21 or over, no children | $437.10 |
$449.30 |
$12.20 |
||
| Single, 21 or over, with children | $472.80 |
$486.00 |
$13.20 |
||
| Single, 60 or over, after 9 months (PhA) | $478.60 |
$491.80 |
$13.20 |
||
| Partnered (each) | $394.40 |
$405.40 |
$11.00 |
||
| Single, principle carer of child, exempt from activity test | $546.80 |
$562.10 |
$15.30 |
||
| Income Test Cutoffs for NSA, WA, PA, SA & MAA - per fortnight Family Situation |
|||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single, 21 or over, no children | $821.84 |
$842.17 |
$20.33 |
||
| Single, 21 or over, with children | $881.34 |
$903.34 |
$22.00 |
||
| Single, 60 or over, after 9 months (PhA) | $891.00 |
$913.00 |
$22.00 |
||
| Partnered (each) | $750.67 |
$769.00 |
$18.33 |
||
| Single, principle carer of child, exempt from activity test | $1,004.67 |
$1,030.17 |
$25.50 |
||
| Youth Allowance Rates - per fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single, principle child carer with exemption | $546.80 |
$562.10 |
$15.30 |
||
Families |
|||||
| Parenting Payment Basic Rates - per fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Sole Parents | $546.80 |
$562.10 |
$15.30 |
||
| Partnered Parents | $394.40 |
$405.40 |
$11.00 |
||
| Income Test for Parenting Payment - per fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Partner's Free Area | $751.00 |
$769.00 |
$18.00 |
||
| For part payment of additional rate all of the following conditions must be met: | |||||
| - customer's income must be less than | $750.67 |
$769.00 |
$18.33 |
||
| - partner's income must be less than | $1,408.33 |
$1,444.67 |
$36.33 |
||
| - combined income must be less than | $1,501.67 |
$1,538.00 |
$36.33 |
||
| If partner is on pension, couples combined income must be less than | $1,501.34 |
$1,538.00 |
$36.66 |
||
| Maternity Immunisation Allowance | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| One off lump sum payment | $236.70 |
$243.30 |
$6.60 |
||
Rent Assistance - for Payments under the Social Security Act |
|||||
| Maximum Payment - per Fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single, no children | $107.20 |
$110.20 |
$3.00 |
||
| Single, no children, sharer | $71.47 |
$73.47 |
$2.00 |
||
| Couple, no children | $101.00 |
$103.80 |
$2.80 |
||
| Partnered, illness separated, no children | $107.20 |
$110.20 |
$3.00 |
||
| Partnered, temporarily separated, no children | $101.00 |
$103.80 |
$2.80 |
||
| Rent threshold - per fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single, no children | $95.40 |
$98.00 |
$2.60 |
||
| Single, no children, sharer | $95.40 |
$98.00 |
$2.60 |
||
| Couple, no children | $155.20 |
$159.60 |
$4.40 |
||
| Partnered, illness separated, no children | $95.40 |
$98.00 |
$2.60 |
||
| Partnered, temporarily separated, no children | $95.40 |
$98.00 |
$2.60 |
||
| Minimum Rent to get Maximum Payment - per fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single, no children | $238.33 |
$244.93 |
$6.60 |
||
| Single, no children, sharer | $190.69 |
$195.96 |
$5.27 |
||
| Couple, no children | $289.87 |
$298.00 |
$8.13 |
||
| Partnered, illness separated, no children | $238.33 |
$244.93 |
$6.60 |
||
| Partnered, temporarily separated, no children | $230.07 |
$236.40 |
$6.33 |
||
Rent Assistance - for Payments under the Family Assistance Act |
|||||
| Maximum Payment per Fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single, 1 or 2 children | $125.86 |
$129.36 |
$3.50 |
||
| Single, 3 or more children | $142.38 |
$146.30 |
$3.92 |
||
| Couple, 1 or 2 children | $125.86 |
$129.36 |
$3.50 |
||
| Couple, 3 or more children | $142.38 |
$146.30 |
$3.92 |
||
| Couple, Illness Separated, Temporarily Separated | |||||
| 1 or 2 Children | $125.86 |
$129.36 |
$3.50 |
||
| 3 or More children | $142.38 |
$146.30 |
$3.92 |
||
| Rent threshold - per fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single, 1 or 2 children | $125.44 |
$128.94 |
$3.50 |
||
| Single, 3 or more children | $125.44 |
$128.94 |
$3.50 |
||
| Couple, 1 or 2 children | $185.64 |
$190.82 |
$5.18 |
||
| Couple, 3 or more children | $185.64 |
$190.82 |
$5.18 |
||
| Couple, Illness Separated, Temporarily Separated | |||||
| 1 or 2 Children | $125.44 |
$128.94 |
$3.50 |
||
| 3 or More children | $125.44 |
$128.94 |
$3.50 |
||
| Minimum Rent to get Maximum Payment - per fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single, 1 or 2 children | $293.25 |
$301.42 |
$8.17 |
||
| Single, 3 or more children | $315.28 |
$324.01 |
$8.73 |
||
| Couple, 1 or 2 children | $353.45 |
$363.30 |
$9.85 |
||
| Couple, 3 or more children | $375.48 |
$385.89 |
$10.41 |
||
| Couple, Illness Separated, Temporarily Separated | |||||
| 1 or 2 Children | $293.25 |
$301.42 |
$8.17 |
||
| 3 or More children | $315.28 |
$324.01 |
$8.73 |
||
| Default Minimums for Shared Care Situations | |||||
| Maximum Payment per Fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single | $107.80 |
$110.88 |
$3.08 |
||
| Partnered | $101.22 |
$104.02 |
$2.80 |
||
| Partnered, Partner in Gaol, Illness Separated Couple, Respite Care Couple | $107.80 |
$110.88 |
$3.08 |
||
| Partnered, Temporary Separated | $101.22 |
$104.02 |
$2.80 |
||
| Rent threshold - per fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single | $95.20 |
$97.86 |
$2.66 |
||
| Partnered | $155.54 |
$159.88 |
$4.34 |
||
| Partnered, Partner in Gaol, Illness Separated Couple, Respite Care Couple | $95.20 |
$97.86 |
$2.66 |
||
| Partnered, Temporary Separated | $95.20 |
$97.86 |
$2.66 |
||
| Minimum Rent to get Maximum Payment - per fortnight | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Single | $238.93 |
$245.70 |
$6.77 |
||
| Partnered | $290.50 |
$298.57 |
$8.07 |
||
| Partnered, Partner in Gaol, Illness Separated Couple, Respite Care Couple | $238.93 |
$245.70 |
$6.77 |
||
| Partnered, Temporary Separated | $230.16 |
$236.55 |
$6.39 |
||
Miscellaneous |
|||||
| Telephone Allowance | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Annual Amount (single or couple combined) | $88.00 |
$92.00 |
$4.00 |
||
| Quarterly Payment (single or couple combined) | $22.00 |
$23.00 |
$1.00 |
||
| Higher Rate Telephone Allowance | |||||
| Req. Home Internet Access | Previous Amount |
20 Sept 2008 |
increase |
||
| Annual Amount (single or couple combined) | $132.00 |
$138.40 |
$6.40 |
||
| Quarterly Payment (single or couple combined) | $33.00 |
$34.60 |
$1.60 |
||
| Seniors Concession Allowance (paid quarterly: 20 Mar, 20 June, 20 Sept, 20 Dec) | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Payable to holders of the Commonwealth Seniors Health Card | |||||
| - Annual Amount | $500.00 |
$514.00 |
$14.00 |
||
| - Quarterly Amount | $125.00 |
$128.50 |
$3.50 |
||
| Utilities Allowance (paid quarterly: 20 Mar, 20 June, 20 Sept, 20 Dec) | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Payable to Australians of Age Pension Age in receipt of Income Support Payments | |||||
| - Annual Amount (single or couple combined) | $500.00 |
$514.00 |
$14.00 |
||
| - Quarterly Payment (single or couple combined) | $125.00 |
$128.50 |
$3.50 |
||
| Health Care Cards (HCC) | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| Average weekly income for eight weeks previous to applying: | |||||
| - Single | $435.00 |
$446.00 |
$11.00 |
||
| - Couple (combined) | $725.00 |
$743.00 |
$18.00 |
||
| - Single, or couple combined, one child | $759.00 |
$777.00 |
$18.00 |
||
| CDEP Participation Supplement (CPS) Income Test | |||||
Previous Amount |
20 Sept 2008 |
increase |
|||
| CPS is payable if income is below: | |||||
| - Single | $1,000.00 |
$1,025.00 |
$25.00 |
||
| - Couple | $919.00 |
$942.00 |
$23.00 |
||
| Total income of both partners must be under | $1,838.00 |
$1,884.00 |
$46.00 |
||