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No September rise for Age Pension?
The Age Pension rate was due to rise from 20 September, but there are reports that the Department of Social Services have announced there won’t be a rise this year.
?BREAKING?The Social Services Department just told the Senate COVID Committee that there will be no increase to the pension this September.
— Katy Gallagher (@SenKatyG) August 18, 2020
Australian pensioners will have to wait 12 months until March 2021 for any increase and even that’s uncertain. #auspol #COVIDcommittee
SuperGuide will confirm next month once this is officially announced. On August 19 Prime Minister Scott Morrison told reporters that a freeze on the Age Pension “was not intended and nor will it be the case that you’ll see those payments reduce. We’ll work out the exact response and the circumstances and we’ll announce that when a decision has been made.”
The Combined Pensioners & Superannuants Association reports that this would be the first time the Age Pension has not risen since 1931. “The rates applicable from 20 September 2020 have not yet been formally announced but a simple calculation shows that they will not change.” said CPSA Policy Manager Paul Versteege.
“The basis for indexation on 20 September will be the Pensioner Beneficiary Cost of Living Index (PBLCI), which is a special inflation rate for pensioners used when it increases by more than the CPI. The PBLCI numbers for the June 2020 quarter and the December 2019 quarter are the same: 115.7. The Pension Supplement is always indexed according to the CPI, while the Energy Supplement does not get indexed at all. So, both the Pension Supplement and the Energy Supplement stay the same as well.
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