What this means for pensioners

A pension boost and greater financial security

Pensioners who receive the Age Pension, Disability Support Pension, Carer Payment, Veterans' Service Pension, Income Support Supplement, War Widow/ers Pension, Bereavement Allowance, Wife Pension, and Widow B Pension will all benefit from pension reform.

Under the new arrangements the Government will provide an additional:

• $32.49 a week for single pensioners on the full rate of pension
• $10.14 a week for pensioner couples (combined) on the full rate of pension.

This brings the single rate of pension up to two‑thirds of the combined couple rate. From 20 September 2009, the maximum assistance for single pensioners will increase from around $304.19 per week to $336.68 per week and for pensioner couples from around $497.36 per week to $507.50 per week.

Streamlined payments with greater flexibility

Pension payments will be simpler to understand and more flexible. The Government will simplify the payments system under the new arrangements by incorporating four existing fortnightly and quarterly allowances into a single fortnightly Pension Supplement.

From 1 July 2010, pensioners on the new arrangements will have the choice of receiving about half of the Pension Supplement on a fortnightly or quarterly basis. The Government will also improve flexibility by improving the existing arrangements for accessing advance pension payments.

A sustainable pension

Tough savings decisions have been necessary to make pension reform affordable. All of us, young and old, have an interest in ensuring a strong safety net, now and into the future.

To respond to the long‑term cost of demographic change, and to reflect improvements in life expectancy, the Government will progressively increase the qualifying age for the Age Pension to 67 beginning in 2017.

The Government will also change the pension income test eligibility rules to ensure the largest pension increases are targeted to those who need them most.