National Seniors Australia welcomes the Federal Government’s announcement of the largest pension increase in 12 years, on the back of extraordinary inflationary pressures over the past 6 months.

The maximum rate of the single age pension will rise by $38.90 per fortnight (taking the single age pension from $987.60 to $1026.5) and for couples, by $58.80 per fortnight (taking their payment from $1488.80 to $1547.60 combined). 

Mr Henschke said the new rates will start from 20 September but given how quickly living costs are increasing, government should consider indexing payments quarterly rather than twice- yearly.

“Waiting for an increase when living costs have been high for six months is playing catch up the hard way," Mr Henschke said.

“National Seniors Australia would like to see government consider indexing payments in June and December when inflation is extremely high.” 

Under the new measures, other payments will also increase. The Disability Support Pension and Carer Payment will also rise by $38.90 a fortnight for singles and $58.80 a fortnight for couples. 

Some income and asset limits will also change due to indexation to ensure people are not disadvantaged. 

The new figures, which include the pension and energy supplements will benefit more than 4.7 million Australians including those on JobSeeker Payment, Parenting Payment and ABSTUDY.  

“While National Seniors Australia welcomes the increases, the rising cost of living has only exacerbated an already dire situation. For pensioners barely having enough to cover the necessities, including housing, the amount is important but so too is frequency,” Mr Henschke said.

"We also want a two-year trial for pensioners who want to work and work more. We need an NZ style system that eliminates Centrelink reporting and requires pensioners to pay an agreed rate of income tax. We suggest 32.5 cents in the dollar. It's simple, fair and will help solve the workforce shortage.