The latest round of indexation starting 20 September, 2024 – including Age Pension, Carer Payment and Commonwealth Rental Assistance – is a welcome and necessary ongoing step towards alleviating cost-of-living pressures, but further action is needed to address financial pressures faced by older people, says the Council on the Ageing (COTA) Australia.
COTA Australia CEO Patricia Sparrow said: “The increase of $28.10 per fortnight for single age pensioners, and $21.20 for each age pension member of a couple is a positive move, and many older Australians will feel some relief.
Ms Sparrow particularly highlighted the significance of the Commonwealth Rent Assistance boost of $23 per fortnight for a single, bringing the maximum fortnightly payment to $211.20, and an increase of $21.80 per member of a couple, totalling $199.00 maximum fortnightly payment.
“This increase comes at a critical time, with rental costs skyrocketing nationwide. Nearly one million households, including many older Australians grappling with housing affordability, will receive much-needed support.
“The budgeted increase to Rent Assistance, along with indexation, provide some welcome relief, but it’s crucial to look beyond short-term fixes,” Sparrow emphasised.
“We need sustainable solutions that address the root causes of financial insecurity among older Australians, particularly for older women who are disproportionately affected by housing stress and homelessness.
“While any increase to Rent Assistance is welcome, it’s still too low because historically it hasn’t kept pace with the rate of rental increases. A comprehensive review of how Rent Assistance should be undertaken to inform the design of a Government payment that’s fit for purpose in the modern rental landscape.”
COTA Australia remains committed to working with Government for more robust measures to support older Australians.
“Our goal is clear: to develop and implement strategies that ensure all older Australians can enjoy financial security and a high quality of life, regardless of their gender or economic background. This indexation is just the beginning – there’s much more work to be done.”
