Federal Treasurer Jim Chalmers has handed down the May 2024-2025 Federal Budget. There weren’t a lot of surprises but there are a couple of 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. We aren’t covering everything, just our take on what’s in it for older Australians.
What were we hoping for?
Our team’s budget wishlist a few weeks ago included
- Centrelink wait times – more money to hire and train staff to help address the exceptionally long wait times people are experiencing to have their claims assessed
- Make it easier for older Australians to earn a part time income by simplifying the work bonus rules to exclude the first $11,800 of employment income from the income test.
- Change the income test so deeming rates are not applied to financial assets below the minimum asset threshold
- Index rental support so it is inline with rental increases. It has dropped a long way behind in recent years
- Increase the limit on the Home Equity Access Scheme (HEAS) so that people can get more than 1.5 times the Age Pension. A big renovation for instance could cost a lot more than this.
- Keep deeming rates at the current level. The last thing Age Pensioners need is an increase that could cut their Age Pension entitlements or their eligibility.
- Increase the work bonus for singles.
What actually happened?
As with most wishlists we didn’t get everything we wanted. There are many competing priorities and a limited pool of money to pay for it all. There is a real trade off between providing cost of living relief without fueling further inflation and potential interest rate rises. This also wasn’t a budget that had a strong focus on older Australians. But there were a few wins. Here is our summary:
- Energy relief – $3.5 billion to be spent on energy relief. There will be a $300 rebate for all Australian households and $325 for businesses starting from 1 July 2024. The rebate totalling $300 will be paid quarterly on bills over the year. For retirees the relief will be particularly welcome.
- Rent assistance will increase by a further 10%. For those receiving rent assistance this will amount to an average of $19 a fortnight.
- Freezing cost of medicines. There will be a cap of $31.60 for prescriptions on the Pharmaceutical Benefits Scheme. For pensioners and concession card holders this will be capped at $7.70 for the next five years.
- Wages increase for Aged Care workers
- Deeming rates will be frozen for another 12 months until 30 June 2025. This was tipped by many commentators to increase. Freezing deeming rates will benefit nearly one million people receiving social security support. It also means that those who are currently close to the income test limit can assume their Age Pension entitlement is safe from deeming changes impacting their entitlements for the time being.
While we didn’t get everything we would have liked the anticipated increase in deeming rates didn’t occur and energy rebates, freezing of medicine costs and rent assistance are all very welcome. And remember, the Age Pension and Commonwealth Seniors Health Cards (CSHC) still provide solid and dependable support to most older Australlans so make sure you are getting all your entitlements. A Maximise Your Entitlements consultation can help you to assess if you are getting what you should and whether any changes to improve your circumstances.
So what did you think about the budget? Do you think it was fair? What did you like and what didn’t you like?
We still need action to provide the Seniors Concession Card to EVERY CITIZEN OVER 70 until death. It’s an equity & fairness issue.
No need for reviews once card granted. No means test income/assets test to obtain. Simple once-off passport/birth certificate or Citizenship proof = considerable savings in public service staffing with no complicated reviews (e.g. Adjusted taxable incomes, Deeming calculations)
Wow could not agree more by 70 we have made our contribution and no more forms please
Did nothing for Pensioners who are supporting their survival by using Super.
I would like to see Pensioners respected. We have worked hard all our lives, some of us being single parents with no help from Govt., working in two jobs to survive. once we have the pension, we should be able to earn $300 per week not per fortnight without being means tested or having to report to Centrelink each fortnight (like children), as it is just so hard to find a good job that pays under $300 per fortnight. some of us have small mortgages and need to work as the single pension isn’t a lot after mortgages,and bills. Don’t we deserve to be treated fairly and not as a hindrance to society
Basically once again self funded retirees have nothing to jump up about- all we get is the privelege of paying a bucket of cash to get into a nursing home if needed and be n the position to spend a nest egg while people who have done little for themselves get everything free!
Bucket should read truck load. I can’t believe the amount of people at the end of their working life don’t own their home or and have very little cash or assets. Maybe it’s good management on their part!!
Totally agree. Having saved and contributed additional funds to super over the years means we are over the asset threshold so get nothing.
It works out to $25 a month off electricity. And that’s not starting until 3 months AFTER July 1st. . I wouldn’t call that particularly welcoming. The whole budget was nothing but a band-aide.
My part pension has dropped by about $100 a fortnight and I am not sure why, especially when my accounts have dropped quite a bit. I have not gotten my super information and so do not know how much it would have made. My super is in Balanced Growth 50% and Conservative 50%
Still waiting for pension outcome, I would love to know how long, 5 months so far.
We waited 5 and a half months.
G’day Bruce, get on the front foot mate & go to your Federal MP’s office & tell them your situation. I did this & things started to happen pretty quickly. All the best.?
My husband had waited over 5 months for his age pension and had repeatedly asked Centrelink what was holding it up. In desperation I emailed our federal MP – hey presto, 3 days later his claim was finalised and he received months of back pay!
Freezing deeming rates is counter intuitive to Govt’s preference for lower RBA rates … each way bet perhaps
G’day Bruce, get on the front foot mate & go to your Federal MP’s office & tell them your situation. I did this & things started to happen pretty quickly. All the best.?
All aged pensioners will loose $200 a year in their electricity bill how is this helping cost of living
You are obviously politically Labour Party supporters. The pitiful $19 increase in Rental assistance is dwarfed by the actual rent increases. My daughter’s rent went up $95 a week and she is unemployed and a single mother. The $300 rebate on energy will be overtaken by real price increases. The deeming rate remaining unchanged was done for reasons related to next year’s election. Don’t bank on it if the ALP wins that election.
my daughter is single with 4 children 1,twins 5 and 7 and paying $560 a week working 2 days because her husband had an affair.id say $95 is cheap!
there was nothing that helps someone who doesn’t own a home who can’t go back to work or didn’t get super as wasn’t around for women when I worked so rely completely on pension and to say you have us a electric bonus every one got this this doesn’t help buy food or pay for petrol to get to doctor sorry but disappointment is what I feel my vote will be going elsewhere
Nothing for self funded retirees. I worked since arriving in Australia for 50 years and not entitled to anything. Not even a healthcare card.
I am still working part time to supplement my income.
I’m not sure what the issue is. Isn’t that what you worked for?
To be self funded is terrific ( I am self funded and happily spend my super to look after myself – have great self satisfaction with that!)
Again nothing for self funded retirees
Yes there nothing for self funded retirees. I will be 67 in October and was told I can apply for the pension in July. I wonder if I will get anything.
I’m a self funded retiree that recently turned 67 and applied for the pension. They have given me a part pension
in my opinion,the budget failked to encourage seniors work bonus of 4000.00 to be maintained with the provisio that it is linker to indiviual claims on rfeducing the burden of the health budget.
For example .my medicare claims only list one item which is my eye sight teastingonly but I am restricyed to 300 per fortnight income and my pension is reduced due to my wife turning 67 in May due to her permanent casual income of 60 hours per fortnight.
The $4000 extra income assisted with the current cost of living and it assisted my employer to provide additional hours as my hours of emplyment ere reduced due to wage indexation which is not taken into account for 4300.00 per fprtnight.
When was the $300.00 income re4strictions reviewed bearing in mind the current hourlt rate of pay and the employers wishing ti maintain staff with experience and knowledge of their operations with mamimum efficiency and effectiveness.
i am 72 years of age,walk 3 hours everyday on the beach in geraldton performing my duties to the community by picking up rubbish on the beach and inspecting every garrage bag that wash up for dyugs and illegal money matters associated with drugs.
The local surf life saving clumb appreciates the senior s efforts and always offers a bottle of water on the weekend and for achat as well.
Where is the physical and metal efforts made by seniors taken into account and maybe a training program of centerlink staff needs to educate the staff the seniors played during the conscription of men to fight foreign wars.
There is a saying when a politican agrres to join a foreign war,their family mebers or themself should be the first one to be drafted and send to the foreign wars.
That is my view of the budget, Sack all the liberal and labor politicans and elect members nonpolitcal parties members that care for their constitutents and take care of the needy and not the greedy international corporations. or the any lobby groups that serve foreign interest.
why didn’t the government provide the money to hire workers to process pension claims l was told it mat take any months claim to be processed l have very little money in the bank and that was supposed to be to fix my house pay for things as they break l will run out of money and be left with nothing but instead of fixing the simple problem of hiring more people to process claim the priminister is paying for more security to centrelink offices that’s his fix
Go into Centrelink and make an appointment to tell them your situation and they will help
Re Centrelink wait times and more staff. There will be no perceptible change to Age Pension wait times in the near future as those new Centrelink staff do not have the knowledge to process them. To quote a Centrelink staff member, currently all Age Pension claim work is being done as overtime, ie on weekends, by long time employees who have the knowledge and want extra money. Those new staff with not be processing pensions for a long time. My claim, very simple, straightforward, took 5 months and that is currently the norm.
I can’t see much relief for me, a self funded retiree, at the Supermarket and the Petrol Bowser.
Also, I currently live in rental accommodation, but this is not a tax concession and I am excluded from the Age Pension (Full or even part pension) due to my Superannuation pension is slightly above the Income test maximum.
Buy a property to reduce your assets.
very bland.
Energy rebate in 23/24 for concession card holders comprised $500 Cwealth) and $200 (state).
Therefore the commonwealth benefit has been cut by 40% to $300. Why should we celcome this cut?
Think the Energy Rebate should have been income tested.
My rent just went up $20 per week, the government gives me $19 per fortnight. some help, yeah right.
Yet again the older citizens who have worked hard to be self supported have been ignored. This is a class of people who have gone without over many years to be shelf sufficient and have again been left out of consideration. We are probably they group who is most disadvantaged by cost of living increases as there is no way to increase income to off set the increase.
Didn’t really put money in the daily pocket. Food prices still going up making it hard for pensioners to eat healthy. Would have been Much better option to help more with cost of living to keep us healthy rather than cheap medications which ultimately over time decrease our health with side effects.. $300 rebate in energy isn’t even $1 per day. Not much relief at all.
Self funded retirees are yet again left out in space. Wow $300 what a terrific win!!!!!!
How about giving back something to the self funded retirees who have all paid millions in taxes throughout their working life and just continually get hammered from every side.
The prescription cap should be available for all seniors
Happy with the Budget. A tough juggling act for Govt when there are so many needs & demands in the community. There seems to be something for everyone.
Should of been a means test for the $300.00 energy rebate, the rich get richer and the poor get poorer
A bit of huff & puff but lacking substance on a number of fronts facing the future of our country with ever reliance of digging up resources to just muddle through, reminiscent of “Nero fiddling while Rome was burning”
I need to know if my allowable earning limit of $12,100 per annum ( which incidentally includes investment earnings, is exempt from the deeming rate of 0.25 %.
Also if any form of taxation applies to a non concessional amount Re-distributed into super from an investment account. Thank you in anticipation.
Hi John, thanks for reaching out. The answers to your questions are not as simple as they seem. To work through each of these questions in detail I would recommend our Strategy Consultation service. We charge a transparent upfront fee for the individual session you book, this means there are no ongoing advice fees or commissions etc. You can find out more information about the consultations that we offer by clicking here.
Alan Desfontains and Rob Thompson have got it right. My electricity bill paid yesterday shows an adjustment called “NSW-AUS Gov Bill Relief” of $125.00 credit. Budget will give relief of $75.00 credit after 1 July. Result $200.00 “worse off” in 2024/25.
For the family reunion immigrants, They came to Australia after their retirement. They haven’t work here for a single day and they haven’t pay any Australian tax. But they are eligible to Age Pension. For us, we had been working hard all through our life. But we are self funded pensioners. We are not even eligible to have Commonwealth Seniors Health Card. I think it is unfair for all working hard Australians.
Pensioners get 200 dollars less than last year for energy relief. $300 for everyone even the rich. Give to the rich take from the poor. How is that fair.
As far as the rent assistance of 10% does not even cover my rent increase as of last week $20.00 per week
Also the power relief for everybody including rich people and people with solar panels which as I am renting and cannot afford and would not be able and cannot af to have them installed my power bill is approximately $900.00 a quarter and I do not have any superannuation to fall back on as I have had to use my super to pay bills
Tony
I am 71 years old worked for 55yers and paid my taxes never receive any support from the government.
I applied for the pension 10 months ago I have presented to centerlink everything the asked from the first appointment 6 in appointments later to date they ask for something different I wander if they know what they are doing.
Very disappointed for the government the way they treat seniors of my generation that worked very hard over the years to build this beautiful country Australia.
We should stand up for our wrights.
Put your treasurer’s hat on and consider how much is coming in and going out. They are in debt so either increase taxes or reduce spending or maintain and pay interest on the debt. Consider the following – If you have worked you will have super paid into your account over time. Income at approx 9% return and taxed at 15% only for all income. Not bad – ‘You have not paid this’.
You pay taxes so the gov’t can run the country e.g. defence and welfare etc. It is not an entitlement 40 years down the track. It is a progressive tax system so if you are/have been a high income earner your marginal rate is 47%. This includes 2% for medicare so you guys can go to the doctor all the time. I am getting $300 electricty rebate as I have also worked hard to get where I am. Why are these people who have lived on support whinging. Get on with it and make decisions based on the policies put forward
I notice a lot of whingers. Years ago, I had extra money and invested in solar panels. I did this as my part to save the planet. While I sympathise, my excess electricity goes to the grid, and I get only 7 cents per unit. I now have invested in Batteries, and I pay less in electricity than I did 30 ago. Yes, the capitol cost was around $15000. I have never been wealthy, but I have never wasted my money on overseas trips. My kids got love and education not huge amounts of presents. They are all successful. They all have their own homes. My youngest son owns a rental property. He is 29 years old paid for his own wedding and they put off having kids until they could afford them. Here’s a question “In which country can a person brought up in a single parent family in state housing become Prime Minister? We live in the greatest country in the world.
What about retirees with a mortgage? Interest rates on mortgages have gone up considerable, yet we get no assistance at all to keep a roof over our heads.
As for the electricity “assistance” it is useless to me as my pensioners and carers concession reduces my bill to zero for most of the year and about $50 for 1 quarter when I use the aircon. We should have been given a choice for water rates as well. That is my big cost.
Empathize with disadvantaged fellow Australians for reasons beyond their control. But for many who choose to spend now and expect support later, it’s not fair to others who work hard and save for the future. Self-funded retirees should receive a fair share.