Age Pension boost praised but advocates demand more to tackle financial insecurity

The upcoming increases to the Age Pension have been welcomed as a necessary and ongoing step towards alleviating cost-of-living pressures but advocates warn that more needs to be done to “address the root causes of financial insecurity among older Australians”.

Following the latest round of indexation on September 20, 2024, older Australians will see an increase to their income support payments.

This adjustment will benefit various payments, including the Age Pension, Carer Payment, and Commonwealth Rent Assistance.

For Age Pensioners, the boost will amount to an additional $28.10 per fortnight for singles and $42.40 per fortnight for couples combined.

The same increase applies to the Disability Support Pension and Carer Payment, bringing the total to $1,114.40 per fortnight for singles and $862.60 per member of a couple, including the energy supplement.

Additionally, as announced in the 2024/25 Budget, the maximum rates of Commonwealth Rent Assistance will rise by 10 per cent, with indexation applied on the same day.

COTA Australia CEO Patricia Sparrow praised the increase in Age Pension payments as “a positive move, and many older Australians will feel some relief.” While she also highlighted the significance of the Commonwealth Rent Assistance boost as “much-needed support,” Sparrow emphasised the need for “sustainable solutions” to address long-term issues.

“This increase comes at a critical time, with rental costs skyrocketing nationwide. Nearly one million households, including many older Australians grappling with housing affordability, will receive much-needed support,” Sparrow said.

“The budgeted increase to Rent Assistance, along with indexation provides some welcome relief, but it’s crucial to look beyond short-term fixes.

“We need sustainable solutions that address the root causes of financial insecurity among older Australians, particularly for older women who are disproportionately affected by housing stress and homelessness.

“While any increase to Rent Assistance is welcome, it’s still too low because historically it hasn’t kept pace with the rate of rental increases. A comprehensive review of how Rent Assistance should be undertaken to inform the design of a Government payment that’s fit for purpose in the modern rental landscape.”

Although Sparrow called for additional measures to address financial insecurity among older adults, Minister for Social Services Amanda Rishworth said the upcoming increases will ensure that “vulnerable cohorts have more money in their pockets for everyday expenses”.

“This Government recognises that many Australians continue to be directly affected by cost of living pressures,” Rishworth said.

“Indexation, together with our Budget measures, means maximum rates of Commonwealth Rent Assistance will have increased by around 45 per cent since the Albanese Government was elected.

“This indexation will deliver timely boosts to people receiving allowance payments and pensions, ensuring that these vulnerable cohorts have more money in their pockets for everyday expenses.”