Starting on 20 September 2024, Australians receiving the Age Pension and Disability Support Pension will see an increase in their payments. This adjustment, aimed at helping pensioners manage rising living costs, will see singles receiving an additional $28.10 every fortnight, while couples will get a combined increase of $42.40. This change is part of the government’s regular indexation process, designed to ensure pension payments keep pace with inflation.
Details of the Increase
The pension increase will take effect from 20 September 2024, as part of the bi-annual indexation tied to the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI). The increase reflects a 2.6% rise, which is higher than the 1.8% increase in March 2024. This is intended to help pensioners cope with the continued rise in living expenses, including food, healthcare, and housing.
Here’s a breakdown of the new rates:
- For Singles: An additional $28.10 per fortnight, bringing the maximum fortnightly rate to $1,144.40.
- For Couples (combined): An increase of $42.40 per fortnight, bringing their maximum payment to $1,725.20.
Pensioners receiving the Disability Support Pension and Carer Payment will also benefit from similar increases.
When Will the Increase Be Reflected?
Although the increase will be officially applied on 20 September 2024, the first payment may not show the full amount immediately. Pensions are paid in arrears, meaning the first payment after the increase will only cover the days following the change. By October 2024, however, pensioners will see the full increase in their payments.
Additional Benefits for Pensioners
Alongside the pension increases, those receiving Commonwealth Rent Assistance will also see a 10% increase in their payments, effective from 20 September 2024. This adjustment is particularly aimed at helping pensioners who are struggling with rising rental costs. The new rates for Rent Assistance are as follows:
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- For Singles: $211.20 per fortnight (up from $188.20).
- For Couples: $199.00 per fortnight (up from $177.20).
Why Is the Pension Increasing?
The pension increase is a result of the government’s indexation system, which ensures payments stay aligned with the rising cost of living. The indexation process is based on the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI), which track the cost of essential goods and services, including healthcare, food, and housing.
What Does This Mean for Pensioners?
For many pensioners, this increase offers some financial relief, though it may not completely offset the growing costs of living. To make the most of this increase, pensioners are encouraged to review their finances and adjust their budgets accordingly. For those who are unsure about how these changes will affect their financial situation, seeking advice from a pension expert or using consultation services like Retirement Essentials can be beneficial.
Key Questions and Answers
- Why is the pension increasing in September 2024? The increase is due to the bi-annual indexation, which adjusts pension payments based on inflation, ensuring they keep up with rising living costs.
- How much will singles and couples receive after the increase? After the increase, singles will receive $1,144.40 per fortnight, and couples will receive $1,725.20 combined.
- When will the increased pension be available? The increase will take effect from 20 September 2024, but pensioners may not see the full adjustment until October 2024.
- Will this increase be enough to cover rising living costs? While the increase will help, rising costs in areas like healthcare and food may still present challenges for many pensioners.
- How can I check if I’m receiving the correct amount? Pensioners can check their payment details by logging into their myGov account or contacting Services Australia for assistance.
In addition to the pension increases, pensioners are encouraged to consider the impact of rising rent and other expenses, and make necessary adjustments to their financial plans.