In August, the Federal Government is set to raise Centrelink pension payments to aid retirees and pensioners with their rising living expenses. This adjustment falls under the government’s twice-yearly indexation review, whereby payments are reviewed in line with inflation and costs of living.
Why a Increase in Pension Is Done
The increase is made to the pension in relation with changes in the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI). The government had considered this with the holding price of essential goods and services becoming high and making pension payments lag behind its requirements. The adjustment is to shore up the purchasing power of seniors and offer some support in these times of high living expenses.
Who Will Benefit with the Increase
Since August, all recipients of the Age Pension, Disability Support Pension, and Carer Payment, as well as other income support payment recipients eligible for increases, will be affected, although single pensioners and couples alike should expect some boost to fortnightly payments, depending on their individual situations and whether they fall under one of those categories.
How Much the Pension Will Increase
While the exact rates vary, single pensioners will have their fortnightly payments increased by a given amount, and couples, combined, will see an increase proportional thereto. These amounts will reflect in payment cycles starting the month of August, and with that, eligible recipients will immediately start seeing the higher amount in their bank accounts post an indexation date.
When Will Payments Increase?
From the first week of August, with the first increased payments reaching pensioners’ accounts as per the normal payment schedule, the Pension Commission is involved in upward rate adjustment. No application or action by recipients is necessary; the adjustment is done automatically for all eligible pensioners.
An Effect on the Elderly Population and the Cost of Living
For many elderly individuals, a little bit of money can go a long way, as utility bills, grocery costs, and health service fees have all continued to climb. The increase in pension may, therefore, not entirely pay for all increase pressures on the cost of living but certainly wll give some relief to people who rely on government assistance.