Age pension payments get biggest increase in 12 years from September 20

The biggest welfare lift in 12 years will give 4.7 million Australians help to make ends meet, but it comes as petrol bowser pain returns.

Pensioners will receive ­almost $20 extra a week to help make ends meet under the biggest indexation rise in 12 years.

More than 4.7 million Australians on welfare will receive the much-needed increase from September 20.

But the boost comes as Treasurer Jim Chalmers will on Monday announce the return of the full fuel excise on September 29.

He will also order the Australian Competition & Consumer Commission to increase their monitoring of price gouging.

Under the welfare changes, the age pension will rise from $987.60 to $1026.50 a fortnight for singles, or $38.90.

Couples will also benefit from an extra $58.80 a fortnight, taking their payment to $1547.60 per couple.

The new figures, which include the pension and energy supplements, follow a $20.10 a fortnight rise for singles in March.

Social Services Minister Amanda Rishworth said it was the biggest indexation increase in 12 years for pensioners and more than 30 years for those receiving allowances.

Welfare payments will rise on September 20 following an indexation increase.

“This indexation increase will help those on government payments keep up with the cost of living,” she said.

“Our guiding principles as a government are ensuring no one is left behind and no one is held back.

“We want to ensure Australia has a strong social security safety net to protect our most disadvantaged.”

Inflation rose 1.8 per cent in the June quarter and 6.1 per cent annually, according to the Australian Bureau of Statistics.

Council on the Ageing chief executive Ian Yates said the new rates would be “absolutely welcomed” because inflation was still high – and expected to peak at 7.75 per cent in the December quarter.

Mr Yates said costs of many basics – such as petrol, food, rent and utilities – had soared.

He said the increase, especially for renters and people who depended solely on the pension, was “essential for them in terms of making ends meet”.

“If ordinary pensioners are feeling the pinch, renters are in real strife,” Mr Yates said.

Social Services Minister Amanda Rishworth said it was the biggest indexation increase in 12 years for pensioners. Picture: Dylan Coker

The indexation comes after the federal government last week announced age pensioners could earn an extra $4000 this financial year without losing any payment.

The $38.90 a fortnight increase will apply to those receiving the disability support pension and carer payments.

Those on JobSeeker, or who receive parenting payments, ABSTUDY and rent assistance will also receive the increase.

The rate of JobSeeker will increase $25.70 to $677.20 a fortnight, including the energy supplement for singles without children.

The parenting payment single will rise $35.20 to $927.40 a fortnight, including the pension and energy supplements.

The partnered rate for both payments will also increase $23.40 a fortnight to $616.60, including the energy supplement.

Originally published as Age pension payments get biggest increase in 12 years from September 20