Secure and Sustainable Pensions

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

Quarterly Pension Supplement

From 1 July 2010, you have the option to receive part of the Pension Supplement on a quarterly basis. This component/part is known as the minimum Pension Supplement amount. You may find this option useful for budgeting purposes.

If you choose this option, the amount of Pension Supplement paid with your payment each fortnight will be reduced. The minimum Pension Supplement amount accrues daily during the quarter and is paid as soon as possible after 20 March, 20 June, 20 September and 20 December with your fortnightly pension payment.

Telephone, Utilities and Seniors Concession Allowances

If you receive any of the following payments, your Telephone Allowance and Utilities Allowance will be paid fortnightly as part of the Pension Supplement:

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

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 changes to pensions

The following measures were implemented as a result of the 2009/10 Budget:

an increase in the pension rate for pensioners in Australia – in September 2009, the full single pension increased by $65 a fortnight. The pension for couples increased by up to $20.30 a fortnight combined.
an increase in the income test taper rate – the rate at which excess income affects the pension has increased 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 with the qualifying age for Age Pension for both men and women increased by 6 months every 2 years starting in 2017.
the Pension Supplement – is automatically paid to pensioners and other eligible income support recipients with their regular fortnightly payment. The supplement combines previous pension add-ons, including Telephone Allowance and Utilities Allowance, into a single supplement.
the Seniors Supplement – combines the old Seniors Concession Allowance and Telephone Allowance into one supplement for Commonwealth Seniors Health Card and DVA Gold Card holders.
the Carer Supplement – an annual, non-indexed, lump sum payment paid to carers every July.
the 'Work Bonus' – a 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. Other changes brought in fortnightly earnings reporting for pensioners who have variable employment income.
enhancements to Advance Payments for pensioners – an increase in the number of advances allowed and an increase in the maximum and minimum pension advance amounts from 1 July 2010.
the closure of the Pension Bonus Scheme to new entrants who did not qualify for Age Pension before 20 September 2009.