As of next Monday, the maximum age pension rate for singles will increase by $14.80 to a total of $967.50 a fortnight, while couples will receive an extra $22.40 for their combined payments.
These increased payments will take the annual pension paid to singles to a total of $25,155 and $37,923 for couples pension.
According to government figures, there are currently 2.58 million Australians receiving age pension payments. This increase will be Australia’s largest pension increase since 2014.
“We are ensuring pensioners maintain their purchasing power in the economy, which is bouncing back strongly,” Social Services Minister Anne Ruston told The Australian.
“This change puts money in the pockets of all Australians who rely on our social security system and, in particular, older Australians.
Close to one million Australians who are currently receiving JobSeeker payments can also expect to see a pay increase of up to $11.90 extra per fortnight.