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Fed: Pension increases roll though from Sunday

PARLY 012
Wed Sep 16 02:24:04 EST 2009
Tue Sep 15 16:24:04 UTC 2009

CANBERRA, Sept 15 AAP - Australia's 3.3 million aged pensioners are to receive long-awaited increases from this Sunday.

Community Services Minister Jenny Macklin said these increases were fair, sustainable and long overdue and would make a difference to the lives of many Australians.

Ms Macklin said this was the most significant reform to the pension systems in 100 years.

She said a key element were measures to address the particular inadequacy of the single pension.

"Recognising that single pensioners don't usually share household costs, the Pension Review found that the relativities between singles and couples needed to be adjusted," she told parliament.

Under the changes a single pensioner on the maximum rate will receive an extra $70.83 per fortnight, taking the total payment to $671.90.

Couple pensioners will receive an extra $29.93 per fortnight, taking their total payment to $1,013 per fortnight.

Pensioners will also receive their final quarterly utilities and telephone allowance with the next payment. That will be replaced with a new pension supplement, combining the utilities, telephone, GST and pharmacy allowances.

Ms Macklin said the changes apply to age and disability support pensioners, carers, wife and widow pensioners and veteran income support recipients.

She said they were now receiving letters from Centrelink and the Department of Veterans Affairs explaining the changes and new payment rates.

Opposition spokesman Tony Abbott said the government only introduced these changes in response to former opposition leader Brendan Nelson's proposed $30 a week increase to the single pension.

"He made it inevitable that the government would follow suit," he said.

"The pensioners of Australia have above all else one person to thank for the changes."

Mr Abbott said not for one second did he begrudge the pensioners these increases and they thoroughly deserved this money.

"But the extra $3 billion a year plus that these changes will cost when fully implemented will have to be paid for every year into the future," he said.