Changes to Centrelink / Social Security

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• Age Pension increases
• Changes to the Age Pension Taper Rate
• Continue to work incentives
• Increased access to Centrelink services/benefits for self-funded retirees
• Increase in the Age Pension age
• Pensioner and beneficiary living cost index
• Paid Parental Leave
• Carer Payments

1. Age Pension increases

The following changes will take effect from 20 September 2009 and apply to:

• Age Pension
• Service Pension
• Disability Support Pension
• Carer Payment
• Bereavement Allowance
• Widow B Pension
• Wife Pension
• Income Support Supplement
• War Widows

Single Age Pension will increase by $30 per week.

• Combination of 4 current allowances (GST, Utilities, Telephone/Internet and Pharmaceuticals) into 1 fortnightly ‘pension supplement’.
  
  
• Pensioner supplement increases by $2.49 per week for singles and $10.14 per week for couples combined.

2. Changes to the Age Pension Taper Rate

• From 20 September 2009 payment rates will be reduced by $0.50 for each $1.00 of extra income above the income test ‘free area’.
  
  
• Transitional arrangements will apply for existing part pensioners affected by this change. Individuals who are worse off will continue to be assessed at the $0.40 taper rate on the reduced base rate of pension (pre-20 September 2009 rate) until they are better off under the new rules.

3. Continue to work incentives

• The Pension Bonus Scheme will close to new registrations as from 20 September 2009, however, existing registrations will continue.
  
  
• Also from 20 September 2009, a new Pensioner Work Bonus will allow pensioners to receive a maximum of $125 per fortnight in additional pension payments. This will be achieved by disregarding 50% of the first $500 of employment income under the income test.
  
  

Seniors Supplement

From 20 September 2009, around 300,000 self-funded retirees will have access to the Seniors Supplement.
This supplement is currently $790.40 per annum for singles and $1,190.80 for couples combined, with payments made quarterly.

Retirees eligible for the Commonwealth Seniors Health Card or the DVA Gold Card will receive the Seniors Supplement.

For more information about these services/benefits call Centrelink or visit their website: www.centrelink.gov.au

5. Increase in the Age Pension age

The qualifying age for Age Pension and Commonwealth Seniors Health Card will increase to age 67 from 2023.

6. Pensioner and beneficiary living cost index

• The single rate of pension will now be benchmarked against 27.7% of the Male Total average Weekly Earnings.
• A new living cost index will be developed.

7. Paid Parental Leave

• Payments will be introduced from 1 January 2011, to the primary carer at the adult federal minimum wage (currently $543.78) for up to 18 weeks.
  
  
• Payments will be considered taxable income and will affect entitlement to family assistance payments but will not be counted as income for income support payments.
  
  
• Primary carers will be eligible if they:
  
  
  • Earned less than $150,000 in the full financial year prior to birth or adoption and worked at least 330 hours over 10 months (equal to one full day per week) preceding birth or adoption.
  • Worked at least 10 of 13 months before the expected date of birth or adoption.
    
    
• This payment will be available to contractors, casual workers and the self-employed.
  
  
• If parents receive the paid parental leave they will not be eligible for the baby bonus except for multiple births, where no baby bonus will be paid for the first child. Parents will also not be eligible for:
  
  
  • Family Tax Benefit Part B
  • Dependant Spouse
  • Child-Housekeeper
  • Housekeeper tax offset
    

8. Carer Payments

A new Annual Carer Supplement of $600 will be payable in addition to the increase in Pension rates. This will be payable to people who receive:

• Carer Payment or both Wife Pension and Carer Payments
• Both DVA Partner Service Pension and Carer Allowance
• DVA Carer Service Pension
• Carers who receive both Carer Payment and Carer Allowance will receive $1,200 pa.
• The first Carer Supplement payment will be made before July 2009 with the regular payment made from July 2010 onwards.
  

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