Pensioners denied payment increase

There will be no pension increase this September, forcing those reliant on the payment to wait a full year for any chance of a boost.

There will be no increase in the age pension this September, and no knowing if those reliant on the payment will see a boost in March either, after inflation went backwards in the June quarter.

There will be no increase on the pension this September, forcing those reliant on the payment to wait until March 2021 for a potential boost, the Department of Social Services revealed on Tuesday.

Speaking to a parliamentary committee, DSS deputy secretary Nathan Williamson said inflation had gone backwards, meaning if the payment was indexed as it usually is on September 20, there would be a drop in the amount.

“Based on the calculation for indexation, if it’s negative, we don’t reduce the pension, but we also don’t increase it,” he said.

Mr Williamson was not able to give any indication as to when there might be a payment boost, noting the uncertain economic climate.

A 95 per cent drop in the cost of childcare during the June quarter, a significant fall in the price of petrol and a drop in the price of preschool and primary education were to blame for the drop in the consumer price index (CPI) according to Australian Bureau of Statistics chief economist Bruce Hockman.

“Excluding these three components, the CPI would have risen 0.1 per cent in the June quarter,” he said.

Mr Hockman said the recent drop, which took inflation to -0.3 per cent was “the largest quarterly fall in the 72-year history of the CPI”.

Jobseeker, which is also linked to the CPI, will maintain its current rate, while the single parent payment will go up by $3 a fortnight from September 20.

The base rate for the age pension in Australia is $860.60 per fortnight for a single person, or $648.70 for each half of a couple.

The payment is reviewed every six months to reflect changes in the cost of living and increases in the average wage. The DSS said it would not know if there would be a rise in the payment in March until about mid-February next year.