1.1.P.155 Pension supplement
Prior to 20 September 2009, the term 'pension supplement' related to the GST supplement, introduced in 2000 to coincide with the introduction of the GST.
From 20 September 2009, as part of major pension reform, the pension supplement combined a range of supplementary payments and allowances into a single payment for certain pensioners and for income support recipients who have reached the qualifying age for Age. It combined the full value of the GST supplement, PhA, UA and the higher rate of TAL, and the total amount was increased.
Following are components and terms associated with pension supplement:
- Combined couple rate of pension supplement:
- is the maximum amount of pension supplement payable to a couple. This amount is used to determine the different rates payable depending on the person's family situation.
- Combined couple rate of minimum pension supplement:
- is the amount used to determine a person's minimum pension supplement amount.
- Minimum pension supplement amount:
- is the amount of pension supplement that a person can elect to receive quarterly.
- is the last component of the supplement to reduce when the income test is applied. It is also the amount which remains payable if any pension supplement is payable after the application of the income test.
- Pension supplement basic amount:
- is equivalent to the former pension supplement, also known as the GST supplement.
- Tax exempt pension supplement:
- is the individual's rate of pension supplement less the pension supplement basic amount.