With inflation heading steadily upwards, predictions for a substantial September 20 Age Pension increase are firming. Last week Treasurer Jim Chalmers endorsed the likelihood of such a pension boost, declaring:
‘We understand that pensioners are doing it incredibly tough when it comes to their costs of essentials like groceries, electricity and petrol and in other parts of the household budget. We don’t want to see pensioners fall further and further behind. And that’s why this indexation which tries to keep up with the skyrocketing cost of living is so important.’
The likely increase is reported to be at least $25.50 per fortnight for singles on a full Age Pension. This would see the full fortnightly rate of the Age Pension increase from $987.60 to $1013.10 for a single and from $1488.80 to $1527.05 for a couple.
Services Australia adjusts pension rates twice a year, on March 20 and September 20. In March this year, the increase of $20.20 for single full Age Pensioners was the highest increase for nine years. We expect the next increase will be even higher.
As you are probably aware, Age Pension increases flow on from indexation of the base rate, which we explained when the March 20 increase was awarded. Following this method of indexation, if the annual inflation rate for end June is as high as 4.8%, then the likely base rate increase for singles will be a sturdy $43.20.
The good news is that there is a mechanism in place to ensure that Australian Age Pensioners on a fixed income at least stay in touch with inflationary surges. The difficulty, of course, is that this is not actually ‘extra’ income – it is a necessary adjustment to allow retirees to simply keep up with prices that are heading upwards at a relentless rate.
Are you fully across your Age Pension rates and entitlements?
If not it’s easy to update yourself by visiting the Retirement Essentials Age Pension Entitlements Calculator. It’s free and easy and allows you to fully understand all your entitlements.
And how you do you feel about a possible September 20 increase to the base rate of the Age Pension of about $25? If you are on a full pension, will this help you keep up with inflation? Or do you feel you are just falling ever further behind?
For those not on any Age Pension entitlements, how do you view this likely increase? and how are you keeping up with rising prices?
Living in a rural area grocery costs at the local IGA are prohibitive and petrol prices make it not cost effective to drive to a larger town where supermarket prices are far more reasonable
Totally agree. Go get em Lance!
I don’t understand why job keeper I’d $750 per week and the aged pension is roughly $500 a week. I would like to join a group to fight for better Increases for the aged pension it’s not like we pay less for everyday items
FYI Victoria Carrington to clarify:
Re: Jobkeeper see https://treasury.gov.au/coronavirus/jobkeeper Was limited duration assistance to businesses to keep staff.
https://www.servicesaustralia.gov.au/how-much-jobseeker-payment-you-can-get?context=51411
Jobseeker =unemployment benefit.
maximum FORTNIGHTLY payment from 20 March 2022
Single, no children $642.70
You can check how your federal MP voted on aged pension et al matters on this website. It’s an eye-opener! https://theyvoteforyou.org.au/
My Fed. MP rejected ALL increases to the pension over the years.
In my case I have worked all my life and payed the same tax as any single person. Yet now as an aged person I cannot get a pension because my wife who is 12 years younger than me is still working.
Not exactly fair.
Yes Les, you are right. My husband and I gave up our job – we worked as joint mangers of a motel – to look after my mother. He took on visual work, the boss promised wages, but did not follow through yet Centrelink based on the reality that my husband was working, although not paid, docked my carers allowance. They don’t care if you have an income or not. They don’t care if you not longer have personal income. They want to reduce you to a pauper. In fact I was told by a Centrelink staffer, that even though I had paid tax my entire working life (60 years) “I was not entitled to a pension. An aged pension was a privilege”
How is my entire working life paying tax any different / privileged than anyone else who did the same thing?
This doesn’t pass the pub test of fairness in anyone’s language.
The system doesn’t even pretend to be fair.
Commentary like the one above from a Centrelink employee need immediate attention!
Most of us have had the same oportunities than anyone else…given our individual circumstances, and they are vastly different in various ways…however we are able to adjust ourselves to most situations by a little change in our habbits…if not just for health reasons,
I see sick people puffing away on cigarettes and drinking to excess needing to use our health systems more than they should because they will not make the effort a change even a little……. This is not including Drug habbits……Adelaide in particular is very easy to get around on public transport Just useing that some of the time is a big saving and less polluting…..Turning your heating on on a cold day for short periods in one room to take the chill off, say for about a half an hour, then useing a hotwater bottle and a rug to stay warm …(that is very nice) Just saying…….