Sunday, March 20, 2016

Age Pension Increases - March 2016

Every 6 months (March and September) the Age Pension is automatically adjusted in accordance with indexation. Of course the ‘age old’ question is which indexation factor is the one that should be applied. The ‘standard’ CPI or the CPI that best reflects pensioner costs?

From 20 March 2016 the following Age Pension rates will apply

Maximum pension payment rates





Previous
Current
Increase
Single
Base
$788.40
$794.80
$6.40

Supplement (1)
$64.50
$65.00
$0.50

Energy Supp.(2)
$14.10
$14.10
nill

Total
$867.00
$873.90
$6.90
Couple (each)
Base
$594.30
$599.10
$4.80

Supplement (1)
$48.60
$49.00
$0.40

Energy Supp. (2)
$10.60
$10.60
nill

Total
$653.50
$658.70
$5.20






So an age pensioner, who is in a relationship, has a additional $135.20 annually to spend and a single pensioner has the luxury of $179.40!

Notes:
1. The above Pension Supplement is the maximum amount payable and may be reduced to $22.50 for a ‘single’ and $18.60 each for a ‘couple’ whilst travelling overseas.
2. The Energy Supplement (formerly the Clean Energy Supplement) is no longer subject to indexation and will remain at the rate of $14.10 for singles and 10.60 for each eligible member of a couple. What a pity given that increasing cost of utilities is far exceeding other cost increases.

2 comments:

  1. I thought that the increase is based on wages growth or inflation..which ever is higher
    The last few increases have been around .7/.8 reflecting inflation of 1.5/1.6 whereas wages growth is 2.2/2.4 ????

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  2. I admit, I have not been on this web page in a long time... however it was another joy to see It is such an important topic pension advice and ignored by so many, even professionals. I thank you to help making people more aware of possible issues.

    ReplyDelete