Pensioners in Gorton will receive letters about the upcoming changes to pension payments over the coming weeks, Brendan O’Connor said.

Centrelink is currently sending letters to 3.3 million Australian pensioners to explain how their payments will change from 20 September, under the Australian Government’s Secure and Sustainable Pension Reform.

Minister for Families, Housing, Community Services and Indigenous Affairs, Jenny Macklin and Minister for Human Services, Chris Bowen, said the changes would boost the pension payments of Age, Disability, Carer, Wife, and Widow B pensioners.

From 20 September, single pensioners on the maximum rate will receive a total increase of $70.83 per fortnight, bringing their total pension to $671.90.

Couple pensioners combined on the maximum rate will receive an increase of $29.93 per fortnight, taking their payment up to $1,013.

This increase includes the rise announced in the May Budget, plus regular indexation.

“Pensioners in our local area have been eagerly waiting to find out how they will benefit from the changes,” Mr O’Connor said.

“It is important that every pensioner reads their letter carefully to understand how their payments will change after 20 September.

“The Centrelink letters will outline in detail the payment changes for each individual pensioner. The payment changes will be automatic and will be paid to pensioners in the fortnight beginning 20 September.”

Mr O’Connor said the Secure and Sustainable Pension Reform will provide much-needed support to pensioners in Gorton and ensure that the pension system provides for those in need into the future.

Ms Macklin said the Australian Government's pension reforms would improve the adequacy of the pension, make its operation simpler, and secure its sustainability into the future.

“These are the most significant reforms to the pension since it was introduced 100 years ago, and are a vital investment in preparing Australia for the future,” Ms Macklin said.

Mr Bowen said pensioners do not need to contact Centrelink to receive the increase.

The Department of Veterans Affairs will contact veterans separately.  

Full details of the changes to rates and thresholds are available at www.australia.gov.au/pensions <http://www.australia.gov.au/pensions>  

Total pension payments from 20 September 2009

(full rate, per fortnight)

Base pension    Single

       Couple (combined)      
Current rate (pre-20/9) $550.30         $919.20        
Indexation      $5.50   $9.20  
Pension reform increase $60.00  -      
Total base pension (post-20/9) $615.80         $928.40        

Pension Supplement                     
Current total value of allowances (pre-20/9)    $50.77  $63.87
Indexation      $0.33    $0.43  
Pension reform increase $5.00   $20.30
Total pension supplement (post-20/9)    $56.10  $84.60

Total pension payments $671.90         $1,013.00