More than five million Aussies to receive cash boost from today
Updated . First published
More than five million Australians receiving social security payments, half of whom are pensioners, will receive a cash boost today.
Pension, rent assistance, JobSeeker, ABSTUDY and parenting payments will increase today as they are indexed to inflation.
More than 2.5 million people are set to benefit from the pension increase alone, with the government estimating those on a full single rate will see a $22.20 increase to their fortnightly payments.
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More than five million Australians will receive a cash boost today. AFR
A recent report by COTA, a charity representing people aged over 50, found one in four older people are living in poverty.
"Many older Australians are carefully managing every dollar, and additional income will help ease pressure on household budgets," COTA chief executive Patricia Sparrow said.
"While it won't solve the cost-of-living pressures many people face, an increase in the pension will make a small difference when it comes to managing rising costs for essentials like food, energy, insurance and healthcare."
Changes to deeming rates, which are a way to assess social security payments based on the income people earn from their financial assets, will also come into effect today.
The Australian Government Actuary recommended the government lift deeming rates, which it has accepted.
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Pensions make up the primary income of all retirees in Australia. Glenn Hunt/Fairfax Media
The lower deeming rate will be increased by 0.5 per cent to 1.25 per cent for financial assets under $64,200 for singles and $106,200 for couples, and the upper rate will be 3.25 per cent for financial assets over these amounts.
Social Services Minister Tanya Plibersek said this was to ensure the social security system delivers value for taxpayers and is grounded in fairness.
"We'll continue to make sure the system is there to support those who need it most, ensuring that everyone can make ends meet and no one gets left behind," she said.
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