With the recent rise in the cost of living weighing heavily on people's minds and bank accounts, there has been a growing concern for the more vulnerable members of our population being left behind as everyday life becomes more expensive. 

At a time when the Australian Government is encouraging older Australians to return to or remain in the workforce, those currently receiving a Service Pension, Age Pension, Disability Support Pension and Carer payments are on track to receive a welcome boost in their bank accounts thanks to the largest pension indexation increase in over 12 years. 

In what also happens to be the largest increase to allowances in three decades, more than 4.7 million Australian pensioners can expect the full payment boost in the first normal pension pay cycle. 

While some have been receiving their updated payments over the past fortnight on their allocated pension payment day, for many, including those on the Service Pension, their first boosted payment will have entered their accounts on Thursday 6 October. 

According to Minister for Social Services, Amanda Rishworth, this most recent increase will provide necessary relief to many, especially veterans. 

“This will give a much-need boost to many people and help ease cost of living pressures” Minister Rishworth said.  

The pension payments have risen by $38.90 a fortnight for singles and $58.80 a fortnight for couples thanks to the latest round of bi-annual indexation on 20 September 2022. 

The maximum rate of pension has increased to $1026.50 a fortnight for singles and $1547.60 a fortnight per couple ($773.80 for each member of a pensioner couple), including Pension Supplement and Energy Supplement. 

The rate of JobSeeker payment for singles without children has also increased, with a $25.70 a fortnight boost resulting in payments of $677.20 including Energy Supplement, while Parenting Payment Single has increased by $35.20 per fortnight to $927.40 (including Pension Supplement and Energy Supplement. 

Minister for Veterans' Affairs, Matt Keogh says the most recent increase to allowances, delivered by the bi-annual pension indexation, will be quickly noticed by those receiving the payments. 

"Our guiding principles as a Government are ensuring no one is left behind and no one is held back, and this indexation increase will help pension recipients including veterans, their partners, war widows and widowers keep up with the cost of living," Minister Keogh said. 

The pension paid to war widow(er)s has risen by $39.60 to $1044.30 per fortnight. 

"We are committed to delivering a package of practical support measures that will improve the welfare and wellbeing of veterans and their families, building on the services already available." 

Additionally, Disability Compensation Payments will increase by $59.90 per fortnight for the Special Rate, $33.20 for the Extreme Disablement Adjustment rate, and $21.30 for the 100% General Rate of Disability Compensation Payment. 

While many will be pleased with the payment boosts, Australia’s peak not-for-profit consumer and advocacy organisation for older Australians, National Seniors Australia has previously referred to the increasing pension indexation as 'temporary respite' in the face of current inflation. 

Following the March indexation Chief Advocate, Ian Henschke said that the pension continues to play catch up with the soaring cost of living. 

“No sooner do we try to get ahead of the cost of living, any increase has already been gobbled up by soaring inflation,” said Mr Henschke. 

Although the current rate of inflation leaves the financial future of Australia's pensioners, and wider population relatively uncertain, this most recent boost in in the banks of our most vulnerable will be a welcome relief for many. 

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

Indexation Rates which were released on 20 September 2022 can be found here.