9.7.4 Historical Information
Introduction of GST
On 1 July 2000 all pensions, allowances and threshold amounts were increased to compensate for the introduction of the GST, and the income taper rate was reduced from fifty cents to forty cents in the dollar for income support payments.
Indexation of the MBR – Prior to 1 January 2010
Certain indexed amounts to be increased in line with increases in Male Total Average Weekly Earnings
Section 59EA VEA
Prior to 1 January 2010, the 'not a member of a couple' maximum basic rate [glossary:(:]MBR[glossary:):] of service pension was legislated to be at least 25% of Male Total Average Weekly Earnings [glossary:(:]MTAWE[glossary:):] at the March and September indexation points. If the 'not a member of a couple' MBR was not at least 25% of MTAWE after indexation against the Consumer Price Index [glossary:(:]CPI[glossary:):], it was further increased so that it was 25% of MTAWE. If the 'not a member of a couple' MBR was increased in this manner, the partnered MBR was increased by 83% of the 'not a member of a couple' MTAWE increase. The MTAWE increase was rounded up to the next multiple of $2.60.
Secure and Sustainable Pension Reform Package
On 20 September 2009, changes were made to pensions and allowances as part of the Secure and Sustainable Pension Reform package which was announced in the 2009-10 Budget.
These changes included:
- the introduction of the Pensioner and Beneficiary Living Cost Index (PBLCI),
- changing the MTAWE benchmark from a 'not a member of a couple' rate of pension benchmark to a 'combined couple' rate of pension benchmark which was set at 41.76% of the annualised MTAWE figure,
- setting the 'not a member of a couple' rate of pension at 66.33% of the 'combined couple' rate,
- increasing the single MBR of service pension by $1,560 per year. Income support supplement recipients received the increase though the war widow/widower pension,
- combining utilities allowance, telephone allowance, pharmaceutical allowance and the former pension supplement to create a new pension supplement,
- increasing the income test taper rate from 40 to 50%.
- removing the additional income free area for dependent children,
- closing the pension bonus scheme to new entrants,
- introducing a work bonus,
- replacing Seniors Concession Allowance with a seniors supplement.
- replacing pharmaceutical and telephone allowance with a veterans supplement.
Special provisions for pension MBR factor on 20 September 2009
In calculating the pension MBR factor on 20 September 2009, the new 'not a member of a couple' MBR is taken to be the MBR after indexation on 20 September 2009 but before the $60 increase to the 'not a member of a couple' MBR under the Secure and Sustainable Pension Reform package.
Adjustment of CPI and PBLCI indexation factors on commencement of clean energy supplement
On the commencement date of the clean energy supplement, the Consumer Price Index [glossary:(:]CPI[glossary:):] indexation factor and (where relevant) the PBLCI indexation factor for the relevant clean energy underlying payment was reduced by 0.7 per cent, but not to below 1.000. In instances where the full 0.7 per cent could not be deducted on commencement of the clean energy supplement, any unused amount was carried forward to be used at later indexation points until the full 0.7 per cent was used.
Energy supplement
The clean energy supplement was renamed energy supplement from 20 September 2014. All energy supplement rates were also frozen from that date. Prior to the rates being frozen, energy supplement was indexed at the same time and in the same manner as the underlying payment. Indexation was against movement in the CPI.
Source URL: https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/97-statutory-increases/974-historical-information