May 30, 2014
Age pension payments are increasing and they will continue to increase twice each year to keep up with the cost of living, according to Federal Member for Gippsland Darren Chester.
Mr Chester has moved to reassure Gippslanders, after repeated false claims made by Labor that there will be cuts to pension payments after the Federal Budget.
In March this year the pension rate increased by a maximum of $15.70 a fortnight for single pensioners and $11.90 a fortnight for each member of a couple, and is set to increase again in September.
“Pensioners will check their bank balances over the next few weeks and find that the pension hasn’t been cut – that it actually increased in March and will increase again in September under the ongoing arrangements,” Mr Chester said. “It is deceitful to claim that pensions have been cut, when the reality is they have increased under the Coalition Government and will continue to increase in the future.
“It is irresponsible for Labor to be making misleading statements about cuts to pensions, causing unnecessary alarm in the community.”
Mr Chester said pensioners would also benefit from lower power bills if the carbon tax is abolished. Pensioners will also keep the Energy Supplement (currently up to $361 a year for singles and up to $546 a year couples).
Pensioners will also continue to receive the Pension Supplement and it will continue to be indexed twice each year. The supplement is currently up to $1635.40 a year for singles and up to $2464.80 a year for couples. The amount of the pension supplement will increase again in September.
Eligibility for Pensioner Concession Cards remains unchanged and recipients will continue to receive the associated Commonwealth benefits of the card.
Mr Chester said the Government had made responsible long-term decisions to ensure the age pension system was sustainable and able to meet future demand.
“We were elected to fix Labor’s mess and legacy of debt. This includes making tough decisions about future spending patterns so we don’t pass the problem on to the next generation,” Mr Chester said.
From September 2017 the age pension will be indexed to the Consumer Price Index and will still continue to increase twice each year.
To provide long-term planning certainty the Government has also proposed to extend the increase in age pension age announced by the previous government from 67 years of age in 2023 to 70 years of age in 2035.