Home | Industry+Policy | Government announces increases to pension payments.

Government announces increases to pension payments.

Those on age pension, disability support pension, carer payment, veteran income support payments all to receive increases.

About four million people are set to receive a bigger pension payment from this month, the federal government has said.

The pension payment to singles will rise by $29.20 a fortnight to $701.10 from 20 March, Community Services Minister Jenny Macklin said in a statement.

For couples on a combined pension the payment will rise by $44.00 a fortnight to $1,057.00.

Those on the age pension, disability support pension, carer payment, veteran income support payments, wife pension, widow B pension and bereavement allowance will receive the increases.

Adult allowance rates, such as Newstart, will increase by $6.80 a fortnight for single people aged 21 or over with no children.

Rent assistance will also rise.

The increased payments will be accompanied by an increase in the amount of income or the total value of assets a person can have before their benefit is cancelled.

Deeming rates will also increase on 20 March from record low levels during the global financial crisis, as the economy recovers and rates of return on investments begin to rise, Macklin said.

The deeming rate will rise from two per cent to three per cent for investments up to $42,000 for single pensioners and $70,000 for a couple.

It will increase from three per cent to four and a half per cent for balances over these amounts.

AAP

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