Indexing pensions and pension equivalent payments by CPI
1 September 2017
The Government will index a number of pensions (and equivalent payments) by the Consumer Price Index (CPI). This measure will standardise the indexation arrangement for these payments which are currently indexed in line with the higher of the increase in the CPI, Male Total Average Weekly Earnings or the Pension and Beneficiary Living Cost Index.
This measure will commence on 1 July 2014 for Parenting Payment Single recipients and from 1 September 2017 for pension payments including Age Pension, Disability Support Pension, Carer Payment, Bereavement Allowance and Veterans’ Affairs pensions.
Removing certain concessions for Pensioners and Seniors Card Holders
1 July 2014
The Government will terminate the National Partnership Agreement on Certain Concessions for Pensioner Concession Card and Seniors Card Holders.
Holders of a Pensioner Concession Card and Seniors Card currently receive a range of concessions from state and local governments such as discounts on council rates, utilities charges and public transport fares. State and local governments generally make decisions on the type and level of concessions they offer. The Australian Government, under this Agreement, has contributed funding towards selected state-based concessions.
GEM Capital Comment
It is unclear at this stage what types of concessions will be removed upon the termination of this Agreement.