The Government understands that many pensioners are doing it tough and is doing all that it can to assist pensioners with cost of living pressures.
To provide immediate financial assistance to Australia's pensioners, seniors and carers, the Government announced on 14 October 2008, as part of its $10.4 billion Economic Security Strategy, a $4.9 billion down payment in the lead up to comprehensive reform of the pension system.
The package provided lump-sum payments of $1,400 to single pensioners and $2,100 to pensioner couples.
In the Budget, the Government also acted decisively to help ease these pressures.
The Government:
- paid a lump-sum Seniors Bonus of $500,
- increased the Utilities Allowance from $107.20 to $500 per annum; and
- increased the Telephone Allowance from $88 to $132 per annum for those with an internet connection.
In total, (excluding indexation) the Government has provided an additional $2,337 of assistance to single pensioners and $3,537 to pensioner couples since coming to office.
Long Term Reform
The Government recognises that comprehensive reform of Australia's pension system is needed.
In May, the Government announced an investigation into measures to strengthen the financial security of seniors, carers and people with disability as part of its broader inquiry into Australia's Future Tax System.
The Pension Review will include an examination of the appropriate levels of income support and the structure and payment of concessions, allowances and other entitlements. The review will hand down its findings to the Government by the end of February 2009.
The Government remains committed to comprehensive reform of Australia's pension and retirement income system. The final shape of pension reform will be detailed in the upcoming budget.