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Secure and Sustainable Pensions

The Government is proposing a number of changes to the pension system as part of its Secure and Sustainable Pension reforms.

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Changes to payment of Telephone, Utilities and Seniors Concession Allowances

Note: There will be no quarterly payment of Telephone, Utilities and Seniors Concession Allowances in December 2009 and January 2010.

If you are a Commonwealth Seniors Health Card holder, or receive any of the following payments, you may be used to receiving a quarterly payment of Telephone Allowance, Utilities Allowance and/or Seniors Concessions Allowance each December and January:

  • Age Pension
  • Carer Payment
  • Wife Pension
  • Widow B Pension
  • Bereavement Allowance
  • Disability Support Pension (excluding customers under 21 years of age without children)
  • Other age pension age recipients of
    • Austudy
    • Parenting Payment Single and Partnered
    • Partner Allowance
    • Widow Allowance.

Telephone Allowance and Utilities Allowance are now paid fortnightly as part of Pension Supplement. For Commonwealth Seniors Health Card holders, Telephone Allowance and Seniors Concession Allowance are now paid quarterly as part of the Seniors Supplement.

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2009-10 Budget measures

The following measures have been announced in the 2009-10 Budget:

  • an increase in the pension rate. From 20 September 2009, the full single pension will increase by $65 a fortnight. The pension for couples will increase by $20.30 a fortnight combined.
  • an increase in the income test taper rate. From 20 September, the rate at which excess income affects the pension will increase from 40 cents in the dollar to 50 cents in the dollar for singles and from 20 cents in the dollar to 25 cents in the dollar for couples.
  • a gradual increase in the age pension age. The qualifying age for Age Pension for both men and women will be increased by 6 months every 2 years starting in 2017.
  • the Pension Supplement will be automatically paid to pensioners and other eligible income support recipients with their regular fortnightly payment from 20 September 2009. The supplement will combine various existing pension add-ons into a single supplement.
  • the Seniors Supplement will combine the Seniors Concession Allowance and Telephone Allowance into 1 supplement for Commonwealth Seniors Health Card and DVA Gold Card holders from 20 September 2009.
  • the new Carer Supplement is an annual, non-indexed, lump sum payment paid to carers every July. The first supplement was paid in June 2009.
  • the 'Work Bonus' is a new concession that allows pensioners over age pension age to keep more of their earnings by disregarding half of the first $500 of fortnightly employment income from the pension income test.
  • the closure of the Pension Bonus Scheme to new entrants who do not qualify for Age Pension before 20 September 2009.
  • enhancements to Advance Payments for pensioners, with an increase in the number of advances allowed and an increase in the maximum and minimum pension advance amounts from 1 July 2010.

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Useful websites

For more information on the range of budget measures for pensioners, visit the Department of Families, Housing, Community Services and Indigenous Affairs website.

Find out more about other Budget measures from the Commonwealth Budget 2009-10 page.

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Publications

If you want to talk to someone about how these changes may affect you, call Centrelink’s retirement enquiry line on 13 2300.

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