In a bid to provide financial relief to retirees and people with disabilities, the Australian government is raising the Age Pension and Disability Support Pension starting 20 September 2024. This increase will offer singles an extra $28.10 per fortnight, while couples will receive an additional $42.40. These adjustments are part of the government’s regular indexation to ensure pension payments keep up with the rising cost of living. The full impact of these changes will be seen by October 2024, bringing much-needed financial support to Australia’s pensioner and disabled communities.
Why is the Pension Increasing?
The upcoming pension hike is part of Australia’s bi-annual indexation process. Indexation occurs twice a year—in March and September—and is linked to the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI). These indices track the rising costs of living, including food, healthcare, and housing, making sure pensions align with inflation.
On 20 September 2024, pensioners will see an increase of 2.6%, reflecting the latest PBLCI rise. This is a larger increase compared to the 1.8% boost in March 2024, signaling the ongoing pressure from rising living costs in Australia.
How Much Will the Pension Increase?
Here’s a breakdown of how the Age Pension and Disability Support Pension will change from 20 September 2024:
- Single pensioners will receive an additional $28.10 per fortnight, raising the maximum fortnightly payment to $1,144.40.
- Couples (combined) will see an increase of $42.40 per fortnight, bringing their maximum payment to $1,725.20.
- The Pension Supplement will also rise by 2%.
These increases apply not only to the Age Pension but also to the Disability Support Pension and Carer Payment.
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Payment Dates: When Will the Increase Take Effect?
While the pension increase is officially set for 20 September 2024, pensioners may not see the full increase until their second payment in October. Pensions are calculated on a daily rate and paid in arrears, so the first payment after the increase might be slightly lower, reflecting only the days post-indexation. By October 2024, pensioners will receive the full adjusted amount.
What About Rent Assistance and Other Benefits?
Along with the pension increase, recipients of Commonwealth Rent Assistance will also see a 10% boost in their payments, starting 20 September 2024. This change is part of efforts to address the rising cost of housing for pensioners, particularly those facing escalating rental expenses. Here’s how the Rent Assistance increase will look:
- Singles will now receive up to $211.20 per fortnight, up from $188.20.
- Couples will see their payments rise to $199.00 per fortnight, up from $177.20.
Practical Tips for Pensioners
- Review Your Budget: With the increase in pension payments, now is a great time to reassess your finances. Factor in the additional funds to help cover essential costs like groceries, utilities, or medical bills.
- Seek Professional Advice: If you’re unsure how the increase will affect your overall financial situation, consider consulting a pension expert or using services like Retirement Essentials for personalized advice.
Common Questions About the 2024 Pension Increase
- Why is the pension increasing in September 2024? The pension is increasing due to the government’s regular indexation, which adjusts payments to reflect the rising cost of living, as measured by CPI and PBLCI.
- How much will singles and couples receive after the increase? Singles will receive $1,144.40 per fortnight, while couples (combined) will get $1,725.20 per fortnight.
- When will the increased pension appear in my account? While the increase takes effect on 20 September 2024, pensioners may see the full increase in their payments by October 2024.
- Will this increase fully cover rising living costs? While the pension increase helps, rising costs in healthcare, groceries, and utilities still put financial pressure on many pensioners. For most, the increase provides some relief, though it may not fully offset all expenses.
- How can I check if I’m receiving the correct amount? You can log into your myGov account to check your current pension details or contact Services Australia for assistance.
These adjustments provide essential support for pensioners in Australia, helping them manage the challenges of rising living costs as they navigate daily expenses.