Boost for Pensioners’ Pockets as September Increase Takes Effect

Pensioners will see some relief this month with a September 2024 adjustment expected to raise the Age Pension by $28.10 a fortnight for singles and $42.40 for couples. The increase comes as pensioners continue to grapple with the rising cost of living, offering a fnancial boost to those struggling to make ends meet.

The Age Pension, Carer Payment, and Disability Pension are adjusted biannually, in March and September, based on the higher of the Pensioner and Benefciary Living Cost Index (PBLCI) or the Consumer Price Index (CPI). This September, the adjustment is expected to refect the 2.6% rise in the PBLCI, outpacing the 2% increase in the CPI.

The new pension rates are expected to be:

• Single or couple separated due to ill health: o Current maximum:

$1,116.30 per fortnight o Expected maximum from September:

$1,144.40 per fortnight o Increase: $28.10

• Couple combined rate: o Current maximum:

$1,682.80 per fortnight o Expected maximum from September:

$1,725.20 per fortnight o Increase: $42.40

Though the new rates take effect on 20 September, some pensioners may not see the full increase refected in their frst payment due to the way payments are processed.

A Combined Pensioners and Superannuants Association (CPSA) spokesperson noted that while the rise is an improvement from the 1.8% increase seen in March 2024, it highlights the ongoing issue of pensioners trying to keep pace with infation. “Indexation only happens every six months, based on price increases that have already occurred, so pensioners are always playing catch-up,” the spokesperson said. This adjustment follows changes to the income test in July, which allowed pensioners to earn up to $212 a fortnight for singles and $372 a fortnight for couples without reducing their pension payments. Further details on the income test can be found on the Services Australia website.

Given the Reserve Bank of Australia’s infation target of 2-3%, similar pension increases are likely to follow in March and September 2025.