The Government will index pension and equivalent payments and Parenting Payment Single by the Consumer Price Index (CPI). Savings of $449m over 5 years are expected.
This measure will commence on 1 July 2014 for Parenting Payment Single recipients and from 1 September 2017 for Bereavement Allowance and pension payments such as: Age Pension; Disability Support Pension; Carer Payment and Veterans’ Affairs pensions.
Currently, these payments are indexed in line with the higher of the increases in the CPI, Male Total Average Weekly Earnings or the Pensioner and Beneficiary Living Cost Index.
Source: Budget Paper No 2 [p 203]
[WTB 20, 13/5/14]