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5.12.1 Overview of Pension Supplement


Last amended: 1 July 2010

What is pension supplement?



Pension Supplement (PSup) is a fortnightly amount paid to eligible pensioners to assist in meeting the cost of prescriptions, rates, telephone and internet connections, energy, water and sewerage.

Service pensioners have PSup included as a means-tested component of their pension.

Rate of PSup

PSup is payable at the single or partnered rate depending on the recipient's family situation and whether or not the person is overseas other than temporarily.    

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Components of PSup

There are three components of pension supplement:

  • Minimum amount
  • Basic amount
  • Tax-exempt amount

Different rules apply to each of these components regarding the eligibility criteria, payment arrangements and tax status.  A summary is provided in the table below:



Other features

Minimum amount


This component is paid in full if some pension supplement is payable.

Payment rate is equivalent to the Seniors Supplement.

Pensioners can elect to receive this component quarterly.

Basic amount


The only component payable to overseas residents.

The only component included in pension bonus calculations

Tax exempt amount


Reference Library - Pension Rates


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