The changes outlined in this fact sheet formed part of the Secure and Sustainable Pension Reform package, most of which were implemented from 20 September 2009. These changes apply to pensioners in receipt of Age Pension, Disability Support Pension, Wife Pension, Widow B Pension, Carer Payment, Department of Veterans’ Affairs (DVA) Service Pension and Income Support Supplement.
Please note that different arrangements apply to people living overseas and to people in receipt of Disability Support Pension aged under 21 years without dependent children.*
A transitional rate to protect entitlements
The transitional rate protects the entitlements of existing pensioners on 19 September 2009 who would otherwise have had an immediate reduction in their payment due to changes in income test arrangements. These pensioners received an increase in their pension and remain on this transitional rate until they are better off under the new rules or cease to receive a payment. They continue to receive existing add-ons and allowances which are paid as part of their fortnightly payment.The transitional rate is indexed to the Consumer Price Index (CPI) increases in March and September.