Permanent Supplement for the poorest pensioners

Article published 19 August 2020

Permanent Supplement for the poorest pensioners

“Many pensioners, especially singles with the pension as their sole source of income, are very disappointed that at the forthcoming September pension indexation their pension will not be increased to keep pace with the cost of living”, said CPSA Policy Manager Paul Versteege.

“Pensions are indexed on the basis of inflation and wages and the rule is it can’t go down. However, the last time the pension did not increase was in 1931, when it was reduced from $104 to $78 a year.

“The current rates are $944.30 for singles and $1,423.60 for couples combined per fortnight. These rates will continue until at least 20 March 2021.

“Pensioners received two $750 COVID payments this year and these were and are very welcome.

“CPSA urges the Australian Government to provide an additional permanent Pension Hardship Supplement for the poorest pensioners, singles without assets and without private income. The living standard of single pensioners with the pension as their sole source of income hovers just above the poverty line.

“Rather than provide another $750 COVID payment, which would go to pensioners regardless of wealth, the Australian Government should target the poorest of pensioners. The majority of single full rate pensioners are widows and widowers, who have faced a drop in their pension of 40 per cent after the death of their partner.”

 

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