Budget changes
Changes to Centrelink arrangements
Increasing the income level for pensioners receiving a full Centrelink Age Pension was a key focus of this year’s Federal Budget.
From 20 September 2009, singles will receive an extra $32.49 per week, while couples will receive a combined $10.14 extra per week.
Other Centrelink changes for retirees effective 20 September 2009 include:
- The tapering rate for the Income Test will increase from 40 cents to 50 cents for each additional dollar of income. However individuals eligible for a part Age Pension under the Income Test at 19 September 2009 will be no worse off.
- Allowance payments will be simplified into a fortnightly Pension Supplement (this supplement is included in the increased pension amounts set out above).
- A new price index will be introduced for the calculation of maximum indexed pension rates if greater than CPI. This index is designed to help link movements in pension payment amounts with the actual movement in the cost of living experienced by Australian pensioners.
- A new Work Bonus will be introduced for Age Pension recipients. Under this bonus only half of the first $500 of employment income which a recipient earns per fortnight will be assessed under the Income Test. The existing "Pension Bonus Scheme" closed to new entrants on 20 September 2009.
- A new Seniors Supplement for self-funded retirees will combine the Seniors Concession Allowance and the full rate Telephone Allowance.
The qualifying age for the Age Pension will be raised to 67. This will take place in stages from July 2017, taking full effect in 2023.
Extension of minium pension drawdown relief
To help ease the investment impact of the global financial crisis, the Budget extended the relief grated in 2008/09 from the full minium pension payment amount to 30 June 2010. For full details, refer to the Federal Budget 2009 section.