Increase in pension rate - frequently asked questions
When does this happen
Changes will take affect from 20 September 2009.
What do I have to do
Nothing. Centrelink will calculate any required changes for eligible customers.
Who will be affected by these changes
Recipients of a pension, including:
- Age Pension
- Bereavement Allowance
- Carer Payment
- Disability Support Pension
- Widow B Pension
- Wife Pension
Recipients of Parenting Payment Single are not affected by these changes except recipients of Parenting Payment Single who are over age pension age who will receive the Pension Supplement.
Recipients of Disability Support Pension (under 21 without dependent children) will not be affected by transitional arrangements and will not receive the Pension Supplement or the pension rate increase. They will be affected by the increase in the rate at which excess income affects the pension, unless they are an existing customer at 19 September 2009.
Will my pension rate go down because of the change
No, nobody will have a pension reduction because of these new rules.
Your pension rate could only go down in September if you had an unrelated change of circumstances at the same time.
Will I get a letter to tell me what my new rate is
Yes. As we approach 20 September 2009, Centrelink will write to pensioners to tell them what their rate of payment will be.
Will we also have the normal pension increase in September
Yes, there is also a pension indexation in September 2009.
I am on a part-pension, but have no earnings (I have other income or assets) - does this mean I won’t get the pension increase
If you are single and already on a part pension, you will get an increase between $20.20 and $65 a fortnight, depending on your income. The minimum increase you can receive is $20.20 a fortnight.
If you are a member of a pensioner couple, you and your partner will get an increase of $20.30 a fortnight combined. If you are a member of a couple, but your partner is not a pensioner, you will get an increase of $10.15 a fortnight.
Centrelink will calculate current pensioners’ entitlements under both the current rules and the new rules and work out which would give each pensioner the best outcome. No current pensioner will experience a reduction in their pension because of these changes.
I am a single person on a full pension - can you tell me now what rate my pension will be after 20 September
The maximum rate of pension for singles will rise by $65 a fortnight plus whatever increase follows from the scheduled September cost of living indexation.
The existing GST supplement, Pharmaceutical Allowance, Utilities Allowance and Telephone Allowance at the higher internet rate will be rolled into the new Pension Supplement which will be paid fortnightly.
The Pension Supplement will include $5 a fortnight increase.
Therefore, in total you will get:
- your current pension
- a $60 a fortnight increase in the basic pension rate
- the Pension Supplement
- the $5 increase to the Pension Supplement.
Apart from the $5 increase, the Pension Supplement is made up of payments you already receive but it will be paid fortnightly instead of quarterly.
We are a couple on full pensions - can you tell us now what rate our pensions will be after 20 September
From September, the existing GST pension supplement, Pharmaceutical Allowance, Utilities Allowance and Telephone Allowance at the higher internet rate will be rolled in to the new Pension Supplement which will also be paid fortnightly.
The Pension Supplement will include an increase of $20.30 a fortnight combined. Therefore you will get:
- your current pension
- any increase following from the scheduled September indexation
- the Pension Supplement
- a $20.30 increase attached to the Pension Supplement.
Apart from the $20.30 increase, the Pension Supplement is made up of payments you already receive but it will be paid fortnightly instead of quarterly.
I am on a part-pension - can you tell me now what rate my pension will be after 20 September 2009
No, we cannot tell you exactly.
There are several changes that must go through our system between now and September 2009 before we will know what your payment will be. At the minimum, you will get an increase of $20.20 a fortnight if you are single and $20.30 a fortnight combined for each member of a couple.
Centrelink will write to you in September to tell you your new payment rate.
If I am better off under the new rules in September, but my private income increases later so that I would be better off on the transitional rate - can I go back to that transitional rate
No, once you have been paid under the new rules you will remain on them.
Note: Transferring to the new rules is not reversible, even if the change in income is once-off or for a short duration. This should be taken into account if, for example, you are considering a brief change in employment income. A Centrelink Financial Information Service Officer can explain the likely outcomes to you.
I am an Age Pensioner and I do some part-time work - what do I have to do to get the Work Bonus?
You do not need to apply for the Work Bonus but you need to keep Centrelink up to date with your earnings. We can only apply the bonus when we know how much your gross earnings are. Between now and September, we will write to pensioners who have had recent income from work about how this concession will affect them.
We will also be advising you about your new earnings reporting arrangements and we will show you how you can update your earnings yourself, without having to talk to Centrelink staff.
If your income qualifies you for a maximum rate pension, you will not be affected by this change.
What kind of income will the Work Bonus apply to
The Work Bonus will apply to employment income such as wages and director's fees. It will not apply to other income such as leave, investments, superannuation, or payments to a principal from a sole trader or partnership.
My partner is not on the pension and is still working - will his/her earnings also get the Work Bonus when calculating my pension
No, your partner’s earnings will only attract the Work Bonus if they are over age pension age and on a pension. In every other case, the earnings will be treated as they are now.
My partner and I are both on the Age Pension and my partner has a part-time job - will his/her earnings be discounted in working out both of our pensions, or just their pension
The Work Bonus will reduce your partner’s assessable income and your combined assessable income affects both of you. Therefore, you will both receive the same benefit from the change.
Will there be changes to my obligations reporting
Some pensioners over age pension age with earnings may need to report their earnings more frequently. We will talk to these pensioners beforehand to explain this.
Who can I talk to about these changes
If you want to talk to someone about how these changes may affect you, call the Centrelink Seniors line on 13 2300.