New indexation arrangements implemented as part of the Government's Secure and Sustainable Pension Reforms better reflect increases to the cost of living pensioners face.
Base pension rates 1 are indexed twice a year, in March and September, to the higher of the increase in the new Pensioner and Beneficiary Living Cost Index and the increase in the Consumer Price Index. The new pensioner living cost index has been specifically designed to better reflect changes in the cost of living experienced by pensioner and beneficiary households, rather than the wider general community.
Base pension rates will continue to be checked against improvements in wages as measured by Male Total Average Weekly Earnings. From 20 March 2010, the benchmark for single pensioners increased from 25 per cent to around 27.7 per cent of Male Total Average Weekly Earnings (41.76 per cent for pensioner couples combined).
These measures are guaranteed by legislation and provide protection for pensioners when prices or wages increase.
Adult Total Maximum Pension Rates at 20 March 2012
| Single per fortnight |
| base |
$ 695.30 |
|
pension supplement |
$ 60.20 |
| Total per fortnight |
$ 755.50 |
| Partnered (ea) per fortnight |
| base |
$ 524.10 |
| pension supplement |
$ 45.40 |
| Total per fortnight |
$ 569.50 |
These new rates represent an increase in maximum pension payments of $154 a fortnight for single people and $156 a fortnight for couples, combined, since September 2009.