Monday 22 June 2009

Clearing up a little Utilities Allowance confusion created by the Nationals

It seems that Nationals Senator for NSW Fiona Nash has been stirring the possum a bit according to Labor MP for Page Janelle Saffin in The Far North Coaster last Friday.
Apparently young Fi has been telling pensioners that their Centrelink Utilities Allowance has been scrapped.


Just to set the record straight here's Labor Senator Kim Carr informing the Senate of the new arrangements during the 17th June 2009 second reading of the bill which will increase pension payments:
"New pension and seniors supplements
The range of supplementary payments and allowances currently paid to pensioners will be simplified and made more flexible through the introduction of a new Pension Supplement.
This will help make pension payments easier to understand. Following the reforms, pensioners will receive two main payments: the base pension and the Pension Supplement.
This new Pension Supplement incorporates the value of the existing
GST Supplement, Pharmaceutical Allowance, Utilities Allowance and Telephone Allowance (at the higher internet rate). Increases of $2.49 a week for singles and $10.14 a week for couples combined will be paid on top of the value of existing allowances.
The Pension Supplement will be indexed in March and September each year in line with increases in the Consumer Price Index. It will be available only to people resident in Australia or temporarily overseas.
The Pension Supplement for a single pensioner will be around two-thirds, 66.33 per cent, of the Pension Supplement for a couple combined. This mirrors the new single to couple ratio established for pension rates.
At 20 September 2009, it is estimated the Pension Supplement will be worth up to $1,462.70 a year for singles (or $28.13 a week) and $2,199.60 a year for couples (or $42.30 a week). This is an estimate as the actual indexation increase is not yet known.
The Pension Supplement will be included in the pension payment rate and subject to income and assets testing. This means that, once the base pension rate is reduced to nil, the Pension Supplement will decrease until it reaches a minimum payment of an estimated $790.40 a year for singles (or $15.20 a week) and $1,190.80 a year for couples (or $22.90 a week). The payment a person receives will not fall below the minimum amount of the Pension Supplement until the person’s income or assets reach a level that would otherwise reduce their payment to nil.
The new Pension Supplement will provide pensioners with more flexibility in managing their own budgets.
From 20 September 2009, the Pension Supplement will be paid fortnightly, along with the base pension. From July 2010, pensioners will have the choice of receiving around half of the Pension Supplement in quarterly instalments. This flexible part of the Pension Supplement will be equal to the minimum payment of Pension Supplement.
Self-funded retirees will also benefit from these reforms. A new Seniors Supplement for holders of a Commonwealth Seniors Health Card will be introduced from 20 September 2009. The Seniors Supplement will replace the Seniors Concession Allowance and Telephone Allowance (at the higher internet rate) for eligible recipients. The Seniors Supplement will continue to be available as a quarterly payment and will be paid at the same rate as the minimum amount of the Pension Supplement. The Seniors Supplement for a single person will be 66.33 per cent of the Seniors Supplement for a couple combined.
In September 2009, the Seniors Supplement will be an estimated $790.40 a year for singles and $1,190.80 a year for couples.
Increases in the Pension Supplement minimum amount for couples combined and for singles will flow through to increases in the Seniors Supplement. This will mean pensioners cannot receive less supplement than eligible self-funded retirees."
The complete explanation can be found here.

Either Senator Nash was not in the Chamber at this time, was not listening if she was or she is taking a leaf out of Luke Hartsuyker's Little Book of Lies to Tell the Electorate.

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