Almost 5 million Australians who get the Age Pension or other Centrelink payments will get a boost to their social security entitlements from 20 March.
The Age Pension, Disability Support Pension and Carer Payment rates will increase by $20.10 to $987.60 a fortnight for a single person and by $30.20 to $1,488.80 a fortnight for a couple.
The federal government is also increasing the asset test to allow more people access to a part pension. That’s the amount of items such as savings, investments and property you’re allowed to own and still be eligible to get some of the age pension. It generally doesn’t include your own home and up to the first two hectares of land it’s on.
For example, the asset limit for a single homeowner will increase by $6,750 to $599,750 and for a couple by $10,000 to $901,500.
The Age Pension is generally reviewed twice a year in an attempt to keep payments in line with any changes in the cost of living. Full details of the indexation changes are available from the Department of Social Services.
The Minister for Families and Social Services, Anne Ruston, said in a statement the indexation of the payments to people was important to help maintain their purchasing power within the economy.
“This is putting money in the pockets of all Australians who rely on our social security system and, in particular, older Australians,” she said.
Labor leader Anthony Albanese said the increase was not enough for pensioners who faced increased costs of goods such as petrol and food.
“The rise in the pension will not keep up with the cost of living,” he told reporters. “Pensioners are doing it really tough at the moment.”
About 2.6 million people received the Age Pension as of March 2021, according to a recent Australian Institute of Health and Welfare snapshot report. That figure has increased by 45% over the previous two decades as more people live on further into retirement.
You can check what Centrelink payments you may be entitled to via the Services Australia website.
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More than 1 million people got a New Year’s payment boost
Back in January, more than one million people on youth, student and carer allowances got a boost of about 3.5% in their payments.
For example, the Youth Allowance for young people living away from home increased by $17.90 to $537.40 a fortnight. For those aged 18 or over living at home it increased by $12.40 to $371.60 a fortnight.
The Parental income threshold for Youth Allowance also increased by $511 to $56,137 a year
Older students on Austudy got an increase of $17.90 to $537.40 a fortnight and singles with children got an increase of $23.00 to $688.20 a fortnight. These rates included an Energy Supplement.
The Carer Allowance increased by $4.60 to $136.50 a fortnight. This supports people who provide additional daily care to someone with a disability, medical condition or an elderly person who is frail.
The 3.5% indexation – which the federal government said was the highest since 2012 – also applied to other payments including the Assistance for Isolated Children, Youth Disability Support Pension, Mobility Allowance and Double Orphan Pension.
Dr Emma Campbell, CEO of the ACT Council of Social Service (ACTCOSS), said the indexing to the CPI of Youth Allowance and other payments was inadequate and risked locking people into poverty.
“We need to see two things: a permanent increase in these payments above the poverty line; and indexation of payments in line with wage movements at least twice per year,” she said in Canberra Weekly.
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This article was reviewed by our Sub Editor Jacqueline Belesky before it was updated, as part of our fact-checking process.
