Budget 2023 – what’s in it for older Australians?
Federal Treasurer Jim Chalmers has handed down the May 2023 Federal Budget. There weren’t a lot of surprises but there are a few nice bonuses for older Australians. Before we start, it’s important to note that these are only proposals. Most are likely to get through Parliament but aren’t guaranteed until they are legislated. Our budget wish list a couple of weeks ago included many of the following proposals including the energy bill relief, more certainty in terms of superannuation, more Commonwealth Rental Assistance and better support for in-home care. We aren’t covering everything, just our take on what’s in it for older Australians.
Energy Bill Relief
This is a one-off and provides up to $500 in the States most affected by soaring energy costs – NSW, QLD, SA, Tas,Vic – and up to $350 in WA, NT and the ACT.
It is not a payment – so don’t expect the money to hit your bank account – but rather a reduction in the bill for people holding the appropriate concession cards such as the Pensioner Concession Card or the Commonwealth Seniors Health Card
If you don’t already hold one of these you can check your eligibility here on our free calculator.
Increase to Rent Assistance payments
Those receiving Commonwealth Rent Assistance will see an increase in rent assistance of a maximum of 15%. For a single person the proposed maximum rate will increase from $157.20 per fortnight to $180.78 from 20 September 2023.
More incentives for bulk billing
Many of us will have been frustrated at the lack of bulk billing at our local GP. The Government has proposed a tripling of the incentives to encourage GPs to bulk bill patient’s holding relevant concession cards such as the Pension Concession Card or Commonwealth Seniors Health Card . The incentives will apply to:
- Face to face consults longer than 6 minutes
- All telehealth services between 6 and 20 minutes
- Longer telehealth consultations where the patient is registered with their GP through MyMedicare
Superannuation.
Some positives and negatives but nothing new.
- An increase to the transfer balance cap from $1.7m to $1.9m which means more money can be put into an account based pension and enjoy the tax free earnings on those monies. You can talk to one of our advisers about this.
- Confirmation of the additional 15% tax on earnings for balances above $3m from 1 July 2025
- The minimum withdrawal payment rates for account based pensions will revert to their pre pandemic levels from July 1 – double what they are now.
- Effective 1 July 2023, the SG rate (employer super contributions) will increase from 10.5% to 11%. This is already legislated.
Increase to Job Seeker
JobSeeker will increase by $40 per fortnight. The Government also announced that a higher JoSeeker rate that applies to some people aged 60 or older will now be extended to those aged 55 and older, giving them an extra $92.10 per fortnight if they have been on JobSeeker for nine months or more.
Other healthcare benefits
- Funding for an additional 9,500 home care packages by 2023-24
- An increase to award wages for many aged care workers
- An increase in dispensing limits as previously reported [link] – two months worth – for some prescriptions reducing both costs and inconvenience
Many of the benefits for older Australians outlined above are targeted at those holding either a Pensioner Concession Card or the Commonwealth Seniors Health Card. If you don’t already hold one it might pay to check your eligibility on our free calculator.
I do hold a seniors healthcare card and having just read your latest letter I noticed that I am entitled to energy relief and wonder how I actually go about claiming the entitlement?
Many thanks
Hi Helen, glad you enjoyed the article! The way to claim any benefit with your CSHC is to simply let the provider/retailer (in this case your electricity/gas company) that you do have the card. If there is a discount available to you they will then apply it moving forward.
It looks like the longer you stay unemployed the more benefits you get. That’s a good way of rewarding bludgers from looking for work do less and get paid more. It should be the other way around
the longer someone is unemployed the lower the benefits should be to encourage long term dollies to get off their butts and work like most other people.
why didn’t I receive a rise in my age pension this month
Hi Sophia, thank you for raising your concern. If you believe your pension is incorrect you should call Centrelink on 132 300 to have it reviewed.
Thanks for the update, always read your inputs and advice
Please keep them coming
This is a win for older Australians ???
You are not serious
Yes, Jim, he is seriously marketing.
Hi Jim, thank you for sharing your thoughts. I apologise if you feel we are misleading you but our article is written to be a factual summary of what Australian Seniors can take away from the budget. We aren’t saying it is the best ever budget for seniors but there are some things worth highlighting for our readers.
hi. my electricity account is in my son inlaws name..I live in granny flat adjacent to their house..I do pay bill.
will I miss out on rebate..what can I do
Hi Lynette, thank you for sharing your situation! At this stage it appears then pensioner’s name needs to be on the account for the benefit to be received. It has not been specifically stated but it is implied and is also how similar benefits in the past were processed.
Hi Jim, my pension increased by $4.03 fortnightly.
I guess I became very excited with this budget!!!
annual 5 Free physiotherapy sessions are no longer Free. Everyone has to pay gap on top of increased bulk billing, including pensioners!
Sweet nothing in the form of age pension increases?
it still costs more for everything else you buy.
Hi David, thanks for joining the conversation! There were no increases to the Age Pension announced as part of the budget but it was only just reviewed and increased back in March of this year so another increase in the budget was unlikely. The good news is the Age Pension and the thresholds to get it are reviewed every 6 months so come September there will likely be another increase.
The aged pension base itself needs to be increased as it is not an amount one can come out on. Many have worked hard and paid taxes all their lives but could not save enough due to circumstances. A review is necessary.
Right on Jim, not really much thought for self funded retirees who are actually saving the government heaps by not drawing a pension!!
WHAT?????? Probably because being self funded is just that…SELF FUNDED. YOU WANT A MILLION IN THE BANK the Govt to pay you a handout as well. Bit greedy don’t you think. government to care for you as well.
Agree, 100% with Trevor. Do the right thing and save instead of frittering away and you are penalised !!
I’m a self funded retiree and don’t consider myself penalised by not being able to benefit from government Age Pension changes. Quite the opposite. I take great pride in not needing government support nor needing to continually advise government of my financial position. I am delighted that being self-sufficient and continuing to pay tax enables my, and other, tax payer funds to be spent in supporting those in need.
I think we should all be entitled to age pension regardless we saved or not and those that go over the assets or income test pay taxes back at 15%
With the energy concession available to Seniors Health Card holders would this apply to other energy suppliers such as home bottled gas? Would it apply to Council rates too?
Hi Bruce, thanks are your query! Many of the CSHC benefits are different from one state to the next so it the best thing to do is simply ask your gas supplier/council if there is any concession available to you and if so they will apply it.
John, it is not that many fritter their money away they just do not earn enough to save and become self funded. We are not all born equal with the ability or opportunity to earn high incomes.
Totally agree with you!
Pensioners receive a Concession on Council Rates, you need to contact them to update your info. In Qld, our Electricity Bill receives a Concession from Federal & State govt.
Was there any good news for us Self-Funded Retiree’s?
Hi Alex, thanks for reaching out! The above items were the only things relevant to Australian Seniors in general, whether self-funded or not. If any changes are announced we will of course cover it off at that time.
so no increase in benifits so we can eat better quality health food. yet pollies are to get 9 grand increase in salary
Hi Helen.
The new super rate above $3M is from 1 July 2015. Does that mean it applies on balances at 30 June 2015 or only a year later?
Hi Trevor, thanks for your question! The current proposal is to start from 01/07/2025 meaning it will apply to balances from that date onward, not the previous year.
Morning I have 2 separate properties in my name can I claim electricity benefit for both properties. I have a CSHC
Hi Yvonne, thanks for asking a great question! The answer is no I’m afraid. You can only receive the benefit on your primary place of residence, additional properties are not eligible.
I am selling a property for $1.3 million. Not downsizing, aged 66. Getting defined benefit lifetime indexed pension. How much lump sum of $1.3 million can I put in PSSap super which only has $2000 in it
Hi Ralph, thanks for seeking clarity! There are a few options available to you, each with their own pros/cons. So that we can understand your situation and guide you to make the right decision for you it would be best to book an Understanding More About Super consultation HERE.
There is a wage increase for carers to who work in home care, however, there doesn’t seem to be an increase in the funds received by the elderly to cover this increase which will mean their hours will need to be reduced. This is a significant issue. Who can I contact to get this addressed?
The carers desperately need the wage increase. They are very poorly paid and do a wonderful job.
I am retired (aged 70) and have only recently received a CSHC (didn’t think I was eligible as my wife still works). Our electricity/gas accounts are in my wife’s name. We obviously live in the same house. Am I able to claim the electricity/gas benefits?
Hi Denis, thank you for reaching out! Similar to other comments we’ve replied to, the eligible person’s name must be on the bill account for the benefit to be applied.
Nothing for those Australians who live overseas. I have lived and worked my entire life in Australia and recently moved to Thailand. For me to get the pension I have to live a further 2 years in Oz after I apply. This is just so unfair and I think many others would feel the same.
Agreed. My wife and I sold our house last year and whilst they were building our new home in a retirement village we rented a house in England near where our eldest son lives. It was cheaper to rent a small house there than it would have been in Aus, but we still had electricity bills etc to pay. Centrelink stopped our energy supplement etc.
Worked for over 50 year in Aus and this is how they treat you.
Hello,I have recently turned 70 years young and can’t find any part time work.
I am receiving the Age Pension and have a Medicare Card. Am I entitled to receive any other cards?
thankyou
Hi Christine, thank you for joining the conversation! With the Age Pension comes the Pensioner Concession Card (PCC) and this is the bee’s knees. The PCC entitles you to the most amount of benefits and there isn’t anything you are missing out on from a Centrelink perspective. There may be a state based card you could receive, the check go to your state’s website and review their section on concessions.
I am an aged pensioner but I am off grid so basically no power bills as such, but still need petrol to run the generator and use a fair amount of bottled gas. Is there any way of claiming the rebate for me. Thanks
Hi Gaye, thank you for your question! It has not been specifically stated that people in situations like yours are not eligible however all the wording we’ve seen indicates the payment going straight on to the billing account with your provider meaning if you do not have that then no you will not likely be eligible.
Tried to submit my Commonwealth Seniors Health Card number with AGL and they refused to accept it… I guess this is another cost of living relief that won’t be going anywhere.
Agree with comment re nothing in budget for self funded retirees who have worked long hours over many gears and saved rather than frivolous spending. I agree, we are saving the government a lot of money and have paid taxes over the years which have supported welfare of other Australians. While I acknowledge that we are in an enviable position to be self funded, it was not achieved by luck or inheriting money. Began married life in early 20s and lived in a caravan. Sometimes I wonder would we have been better served to live a more luxury lifestyle down the years rather than save. I think the government need to acknowledge the efforts of hardworking and more frugal Australians such as we are
My wife and I have recently moved to a retirement village and our electricity comes through a group scheme. i.e. the facility gets the bill and shares it between residents based on consumption / meter readings.
How do we get the energy bill relief?
Hi Charles, thank you for your query! As we’ve stated multiple times in the comments, to be eligible to receive the benefit the eligible person must be the account holder, if this is not the case then the benefit will not be applied.
The thread and the facts are, thru just about all comments, is that the savings ethic we have lived by was probably not worth while because self fundeds are constantly overlooked.
We are forced to live off liquidating what we have saved and still pay tax on bank a/cs income while the majority SF’s over 65 get virtually nothing other than State Seniors Card savings at (private enterprise) shops!
THe hurdles to get the C/wealth Seniors HC Card are crazily complicated when all that should be needed is “ALL over 65 should be able to get that card on proof of age, Citizenship, Residence & no ATO debts owing: no need for Centerlink , public service bulldust. A HC card for life because we face the same health issues of all pensioners! What politition will take this seriously??
I have a CSHC and contacted Red Energy asking them to apply any rebates or discounts I may be entitled to as a CSHC holder. They replied saying the card only relates to health issues not energy accounts.
Can you refer me to something that confirms the $500 rebate is available to CSHC holders?
Hi Graeme, thank you for sharing your experience! You can find the government’s energy website HERE explaining the relief payment and how it works. The devil may be in the detail though, it states that the eligible concession cardholder’s name must be on the account but doesn’t specifically mention the card being registered with your provider. It could be that the government will provide a list of names to the providers for them to apply the credit to without you needing to ‘register’ your card with them.
Hi,I relive that age pensioners had a pension rise in March which was Pitney compared to the high rise of cost for food ,medicine ,petrol ect,every one else seems to be getting money from the gov exept age pensioners,so unfair when we worked all our life’s and payed our taxes like every one else.I thought Mr Albanese understood how hard it was for his mother on the pension that was the reason pensioners voted for him,Now that he has been elected Prime Minister and earning good money plus he will retire on a hefty pension that’s all that seems to mater now,He promised pensioners that they won’t be left behind well promises were broken ,made the pensioners think that he is going to help pensioners it was all done so he can get elected,what a joke,I remember Albanese telling Morrison that pensioners need $100 a week extra to live as every thing has gone sky high yet now that he is prime minister he gives pensioners a rise of $38 wow,Thanks very much Albanese,
You are right. Once again single parents and dollies are getting more looked after than those that deserve better. After all, us oldies had children and brought them up without welfare and worked all our lives but now it seems the more children you have the more you get and the longer you stay unemployed the better off you will be. Some incentive like lowering the dole for long time dollies instead of rewarding them and that goes for people who cannot afford children.
Did you know that as a age pensioner who has a house still with a mortgage due to unexpected reasons still has to pay land rates/council rates
IF you deduct that from the pension and add rent relief for the unempolyed and single parents then they are better off than Pensioners .The disabled and CARERS