Key Takeaways
- Australian pensioners will receive a 2.7% increase in their payments from February 2024, as part of the 2023 budget measures.
- The pension increase will apply to the Age Pension, Disability Support Pension, Carer Payment and Service Pension.
- The pension increase will help pensioners cope with the rising cost of living and boost their financial security.
- Pensioners need to have a Centrelink account to access their payments and update their details online.
- Pension payment dates for 2024 are available on the Services Australia website.
Introduction
As the fiscal year unfolds, Australian retirees are set to welcome a positive change in their financial landscape with the anticipated 2024 Pension Increase. In response to the rising cost of living, the federal government announced a 2.7 percentage point increase in the pension rates as part of the 2023 budget. This means that pensioners will receive more money in their pockets from February 2024 onwards.
This article will explain the types and dates of the pension increase coming in February 2024, and why having a Centrelink account is vital for pensioners. It will also provide some tips on how to manage your pension payments and plan ahead for your retirement.
Types of Pension Increase Coming in February 2024
The pension increase will apply to the following payments:
- Age Pension: This is the main income support payment for people who have reached their Age Pension age and meet the eligibility criteria. The Age Pension age is currently 66 years and 6 months, and will gradually increase to 67 years by July 2024.
- Disability Support Pension: This is the income support payment for people who have a permanent physical, intellectual or psychiatric condition that prevents them from working or limits their ability to work.
- Carer Payment: This is the income support payment for people who provide constant care to someone who has a severe disability, illness or medical condition, or who is frail.
- Service Pension: This is the income support payment for veterans, their partners, widows and widowers who meet the eligibility criteria. The Service Pension age is the same as the Age Pension age.
The pension increase will affect the maximum basic rate and the Basic Pension Supplement rate of these payments. The Basic Pension Supplement is an additional amount that helps pensioners with the cost of living and health care.
| Payment type | A$ amount per fortnight single | A$ amount per fortnight couple both eligible | A$ amount per fortnight couple one eligible partner | A$ amount per fortnight couple separated due to ill health |
|---|---|---|---|---|
| Current maximum basic rate | $952.70 | $1,436.20 | $718.10 | $952.70 |
| New maximum basic rate | $978.40 | $1,475.40 | $737.70 | $978.40 |
| Current Basic Pension Supplement rate | $69.60 | $104.80 | $52.40 | $69.60 |
| New Basic Pension Supplement rate | $71.40 | $107.60 | $53.80 | $71.40 |
| Total current rate | $1,022.30 | $1,541.00 | $770.50 | $1,022.30 |
| Total new rate | $1,049.80 | $1,583.00 | $791.50 | $1,049.80 |
Dates of Pension Increase and Payment Schedule for 2024
The pension increase will take effect from 20 February 2024, which is the first pension payday after the indexation date of 1 February 2024. Indexation is the process of adjusting the pension rates twice a year, in March and September, based on the changes in the cost of living and the average earnings⁷.
If you live or travel outside Australia long term, you will receive your pension payment every four weeks, instead of every two weeks.
| Date we’ll issue your payment | Date you’ll get your direct deposit payment | Date you’ll get your cheque payment | Period the payment covers |
|---|---|---|---|
| 21 February 2024 | 27 February 2024 | 13 March 2024 | 24 January to 20 February 2024 |
| 21 March 2024 | 27 March 2024 | 10 April 2024 | 21 February to 20 March 2024 |
| 18 April 2024 | 24 April 2024 | 8 May 2024 | 21 March to 17 April 2024 |
| 16 May 2024 | 22 May 2024 | 5 June 2024 | 18 April to 15 May 2024 |
| 13 June 2024 | 19 June 2024 | 3 July 2024 | 16 May to 12 June 2024 |
| 11 July 2024 | 17 July 2024 | 31 July 2024 | 13 June to 10 July 2024 |
| 8 August 2024 | 14 August 2024 | 28 August 2024 | 11 July to 7 August 2024 |
| 5 September 2024 | 11 September 2024 | 25 September 2024 | 8 August to 4 September 2024 |
| 3 October 2024 | 9 October 2024 | 23 October 2024 | 5 September to 2 October 2024 |
| 31 October 2024 | 6 November 2024 | 20 November 2024 | 3 October to 30 October 2024 |
| 28 November 2024 | 4 December 2024 | 18 December 2024 | 31 October to 27 November 2024 |
| 19 December 2024 | 23 December 2024 | 6 January 2025 | 28 November to 18 December 2024 |
Why the Centrelink Account is Vital for Pensioners
If you receive a pension payment from the government, you need to have a Centrelink account to access your payments and update your details online. A Centrelink account is an online service that allows you to:
- Claim a payment and check the progress of your claim
- View your payment history and statements
- Report your income and any changes in your circumstances
- Manage your deductions and advance payments
- Apply for a concession card or a health care card
- Upload documents and forms
- Send and receive messages
- Access other online services, such as myGov, Medicare and the Australian Taxation Office
To create a Centrelink account, you need to have a myGov account and link it to Centrelink. A myGov account is a secure way to access multiple government services online with one username and password. You can create a myGov account on the myGov website.
Having a Centrelink account is vital for pensioners because it helps you to:
- Stay on top of your payments and avoid overpayments or underpayments
- Keep your personal and financial details up to date and secure
- Save time and hassle by doing everything online, without having to visit a service centre or call a phone line
- Access information and support tailored to your needs and preferences
IMPORTANT LINKS
- How to Trade in Your Old Gas-Powered Vehicle for an Electric Vehicle with the BC Scrap-It Program
- How to Get a Tax Write-Off for Your Business with the Federal Tax Incentive for Electric Vehicles
- How to Save Money with the Federal iZEV Program for Electric Vehicles
- How to Find the Best Electric Vehicle Charging or Hydrogen Refuelling Station Near You
- How to Buy or Lease a Heavy-Duty Electric Vehicle with the Federal iMHZEV Program
Tips on How to Manage Your Pension Payments and Plan Ahead for Your Retirement
Receiving a pension increase is good news for your retirement income, but it may not be enough to cover all your expenses and goals. Here are some tips on how to manage your pension payments and plan ahead for your retirement:
- Budget wisely: Make a realistic budget that tracks your income and expenses, and helps you to save money and avoid debt. You can use online tools, such as the MoneySmart budget planner⁹, to help you create and stick to your budget.
- Review your investments: If you have any savings or investments outside your pension, review them regularly and make sure they are aligned with your risk tolerance, time horizon and objectives. You can use online tools, such as the MoneySmart retirement planner[^10^], to help you project your retirement income and expenses, and adjust your investment strategy accordingly.
- Seek financial advice: If you need help with your financial decisions, seek professional advice from a qualified and licensed financial adviser. You can use online tools, such as the MoneySmart financial advisers register¹¹, to help you find and check an adviser. You may also be eligible for free or low-cost financial counselling services, such as the National Debt Helpline if you are experiencing financial hardship or stress.
- Stay healthy and active: Your health and wellbeing are important for your quality of life and your retirement savings. Take care of your physical and mental health by eating well, exercising regularly, staying socially connected and engaging in meaningful activities. You can use online tools, such as the Healthdirect service finder¹³, to help you find and access health services and support in your area.
Conclusion
The 2024 Pension Increase is a welcome boost for Australian pensioners, who will receive more money in their payments from February 2024 onwards. This article explained the types and dates of the pension increase coming in February 2024, and why having a Centrelink account is vital for pensioners. It also provided some tips on how to manage your pension payments and plan ahead for your retirement.
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Source: (1) Centrelink online account – Services Australia. https://www.servicesaustralia.gov.au/centrelink-online-account. (2) Centrelink – Services Australia. https://www.servicesaustralia.gov.au/centrelink?context=1. (3) Create an online account – Accessing our services – Services Australia. https://www.servicesaustralia.gov.au/create-online-account?context=64107. (4) What you can do with your Centrelink online account – Centrelink online …. https://www.servicesaustralia.gov.au/what-you-can-do-with-your-centrelink-online-account?context=22621. (5) Centrelink Online Account. https://business.centrelink.gov.au/LoginServices/source/portal/RedirectMygov.jsp?loggedOut=true.