Earlier this month, the ABS reported an 0.8% fall in the cost of living for Aged Pensioners, which follows the 1.9% decline in the Consumer Price Index:
On the back of this fall, a parliamentary committee this week heard that the indexation formula used to determine the increase in government pension payments meant there would be no increase in Aged Pension payments in September, which would be the first time since 1931 that no increase has occurred.
This has resulted in an angry backlash from the Council on the Ageing, which has demanded another $750 coronavirus supplement:
Council on the Ageing (COTA) Australia has today urged the Federal Government to provide an additional $750 stimulus payment to pensioners in consideration of the increased costs incurred due to COVID-19, after it was revealed pension payments would not rise in September as a result of the indexation formula actually going down…
“Australia’s world class pension indexation gives pensioners regular increases by the higher of the Consumer Price Index (CPI), Pensioner and Beneficiary Living Cost Index (PBLCI) and 25% of Male Total Average Weekly Earnings (for couple pension, effectively 27.7% for singles). The fourth protection is that if the outcome of these three indices is negative – a fall in value, the pension does not fall, it stays the same. COTA accepts this and strongly supports the indexation formula which has served us well”.
“However, during the COVID-19 pandemic period prices affecting pensioners have fluctuated for a variety of reasons,” Mr Yates wrote.
“The impact of increased costs has been compounded by a reduced number of “specials” or “discounts” to the ticket price for many food items, and reduced access to “specials” by cost conscious pensioners when they are following government advice to stay at home and shop from home.
“In doing so they have also incurred the additional costs of home delivery. While the CPI has gone down because of the impact of items like childcare this does not help age pensioners…
“And while the two previous $750 payments have been very welcome, pensioners have ended up with less income in this period than people on the increased level of Jobseeker…
Unbelievable stuff. Already this year Aged Pensioners have received an additional $1,500 in payments on top of their base pensions via coronavirus supplements. Thus, their incomes have increased at a time when many Australians have lost their jobs and are facing uncertain futures.
The rest of us should be so lucky.
