Increase in pension taper rate from 20 September 2009
From 20 September 2009 the income test taper will increase from 40 to 50 cents in the dollar for a single pensioner and from 20 to 25 cents in the dollar for each member of a couple above the allowable income free thresholds. This threshold is currently $138 per fortnight for single pensioners and $240 per fortnight for pensioner couples (combined).
Existing part pensioners affected by the income test changes will not have their entitlements reduced by this change and they will receive an increase of $10.14 per week for singles or couples combined.
The additional income free area available for those pensioners with children will be abolished to align the pension income test with the allowance and family payments income tests.
Age pensioners and service pensioners will have employment income assessed fortnightly, with only half of the first $500 of fortnightly employment income to be counted in assessing their pension entitlement.