Last amended: 1 July 2010
What is pension supplement?
Section 5GA of the VEA
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
PS — up 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.
Reference Library - Pension Rates
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:
|
Component |
Taxable |
Other features |
|
Minimum amount |
No |
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 |
Yes |
The only component payable to overseas residents. The only component included in pension bonus calculations |
|
Tax exempt amount |
No |