This article is written by YourLifeChoices Founder Kaye Fallick
I’m thrilled to have been invited to once again report on matters financial for all YourLifeChoices members. Some of you may remember me from ‘back in the day’ – and I’m hoping those who don’t will soon become new friends.
Today I’m covering last night’s Federal Budget (2025-2026), or to be precise, just the items that older Australians need-to-know. The good news is that I’ve slogged through all the petty detail on your behalf and organised what matters most into five categories:
Health
The main announcement in health was made a few weeks back – and immediately matched by the Federal Opposition. This relates to an 8.5 Billion expansion of bulk billing and nearly $700 million to reduce the cost of most of the medicines on the Pharmaceutical Benefits Scheme by about $6 per script. Retirees with concession cards have script prices frozen at $7.70 already.
Wealth
Whilst not announced, there is widespread reporting of a further 12-months freeze on the deeming rates, the method with which Centrelink assesses your financial assets for eligibility for an Age Pension. These rates were frozen during the Covid Pandemic and remain at an all-time low for a year longer now. Assuming this is correct, it is a ‘biggie’ as, with rates at 0.25% (lower) and 2.25% (higher), most Age pensioners are ‘deemed’ to earn much less than they actually do on shares, savings and super balances.
Housing
While not aimed specifically at retirees, the expanded ‘Help to Buy’ Scheme could help older Australians who struggle to achieve enough for a deposit for their own home.
Energy
A universal $150 discount will be paid quarterly until end 2025. And the good news is that you don’t have to do anything to get this rebate , your supplier applies this discount to your bill. But it’s worth keeping an eye on your energy statements to ensure that this does happen.
Aged Care
Pay rises for Aged Care workers (as previously determined by the Fair Work Commission) will be delivered, providing more capacity to our under-pressure aged care system.
Most of the above measures were selectively released to the general media in the weeks prior to the 25 March Budget announcements. But there was one sneaky surprise that Treasurer Jim Chalmers saved for his big night. This was a modest tax cut for all workers. If you are still working and don’t need the extra dollars, using this money to salary sacrifice more into your super could be a smart idea.
Is this a ‘good’ budget overall?
Given Australia has slipped back into deficit, there was never going to be a major pre-election spending splurge. The reported deeming announcement gives some security to the 2.6 million or so Australians who are receiving the Age Pensions. As noted above, the rates remain well below what retirees can actually earn on their financial investments, so it’s a great ‘free kick’.
What would have been helpful, had the spare funds been available, is an increase in the base rate of the Age Pension – a rate which has not been altered since PM Kevin Rudd increased it during the Global Financial Crisis of 2007. That’s a long way back and it’s fair to argue that, despite twice yearly indexation, the value of the full Age Pension has been severely eroded since that time, particularly for renters.
And then there’s the vexed issue of Commonwealth Rent Assistance which, despite yesterday’s planned increase, remains far too low for those on government benefits to find secure and viable accommodation.
Enough from me, over to you…
Which measures in the Budget do you most appreciate?
And which would you give the thumbs-down?
Kaye Fallick is a writer and best-selling author. She is also the founder and former publisher of the YourLifeChoices website, which she believes gave her a 20-year ‘apprenticeship’ in learning the health, money, and life stage dramas and concerns of Australian baby boomers. She’s an advocate for Australians over the age of 60, and we are delighted to have her on board, writing content for you. If you’d like to know more about Kaye, you can visit her website, Staying Connected.
Fallicks figures are not correct regarding the pension increases since Rudd; from memory there were two substantial rises one was $38.90 for singles in 2022? I can’t remember the other one about $23 I thought and they are different than the usual $7 x2 twice a year.
As for the $150 energy relief, too lazy to sort the wheat out from the chaff and a lot will be going to rich people who don’t need it which could have meant double for the poor. And do Queenslanders need it, I believe they are already getting a huge discount on electricity from their govt.
As for the tax cuts for workers, $5 a day, I know every bit helps but this is laughable even worse than the last one.
One last improvement would be to get the 700.000 bludgers off the NDIS, this scheme should be only for severely disabled, not for every second kid on a spectrum or autistic for those there should be special schools.
I think the increases you are referring to were standard indexation increases not actual increases.
The $38.90 increase was due to regular indexation ,( the six mths number was 3.5% at the time). It wasn’t a one off increase, the unemployed and renters both saw one off increases but pensioners increases have only gone up due to indexation.
Eligibility for NDIS is a touchy issue. It is supposed to be a program designed to allow people with disabilities to lead a “normal life” whatever that is. The higher the level of disability the higher the level of assistance that is avialable.
From detailed knowledge of a person included in NDIS and they are certainly not a bludger (they receive a Centre Link pension and barring a major miracle will remain so for life). However the accountability controls are very weak and I suspect that significant savings could be made by improiving the accountability of expenditures.
What’s in it for pensioners can be summed up in 1 word “nothing”
Correct..
I agree with Tood re the amount of money going into the NDIS. Most people applauded it’s introduction thinking it was going to help families with severly disabled family members but there are now so many people on it and there appears to be no controls on how much NSIS providers are allowed to charge for services and equipment.
There is little or nothing in this budget for pensioners. Labor has become like the LNP and has stopped looking after the aged and infirm properly.
The latest indexation rise of about $2 a week to cover price increases over the past six months is a cruel joke on every pensioner because the reality is way different.
Pensioners should all be putting the ALP and LNP last this election. There are a lot of other choices to give your first preference to in most electorates some of whom are actually human.
Why do politicians hate pensioners so much, there is absolutely nothing in the budget for pensioners, the increase in the pension will not touch the sides of the increase in cost of living, and yet money is been thrown at other members of the community, this is an election budget, and don’t think the opposition will be any better.
It is shameful Jim..
Deferring the deeming will help and I hope we get another12 months.
My memory is that the Libs altered the rate of pension reduction by 100% for those on a part pension.
That caused considerable hardship.
I worry that the amount of admin under the new Agedcare act is going to overwhelm the Aged care homes
$150 off the energy bill is the extent of this budget for me. However, having had the amazing increase of $3 per fortnight on my pension, my health care fund has just raised my premium by $12.06 per month = $144 per year. So I’m $6 better off for the year. However with food prices increasing almost daily and no guarantee that energy prices won’t go up again in the next 12 months not only am I worse off than three years ago, I’m going to be worse off again over the next three years. HipHipHooray Mr Chalmers Whoopeedo. Time for you to go.
I get the reduction in energy bills. As a self funded retiree I fail the pension test so there is nothing for me.
Why are the electricity rebates for everyone? Labor is meant to be a party that support the working class and most disadvantaged but Albo and the rest are doing nothing, and the libs are no better. My advice to current labor is that they need to get back to their roots and stop playing populist politics and putting themselves first instead of those who put them into office. Disgusting
I just looked up our increase which will be $3.62 each. Thanks but no thanks.
Whilst I understand that deeming rates will effect a % of pensioners, there are many of us who can only dream of an investment that could be ‘deemed’. Those of us in that category can only look at $150 energy supplement, because there’s absolutely nothing else of benefit.
I received $5.40 per fortnight – $4.60 + .80 for rent assistance – what a joke!
My phone bill has just gone up by $10 per month (due to parent company increasing their prices), and then don’t get me started on increases in insurance (car, CTP, Contents, Health), food, fuel, and rent (due in August, and probably going up by around $10-20 per week, and it hasn’t gone up in the past 12 months, so I’m expecting it to now).
I don’t drink alcohol, smoke, or gamble by choice, so how am I supposed to ‘stretch’ my budget any further, with nothing to do it with?
I keep a very tight reign on my spending, and haven’t purchased ‘new’ clothes or shoes for many years just because I can’t afford it, (except underwear). It’s getting to a point now that I have to purchase new clothing as I’ve recently lost a lot of weight, and I’ve had to go from 26 to 22 in pants (thank goodness I had the 22s from the 1990s, and hadn’t worn them, and even they’re ‘falling off me’.
How can I get ‘blood from a stone’ when the stingy federal government – both sides – won’t give me any more to ‘live on’? I have no super (left last full-time job in 1992, have been on the DSP, and now Age pensions since, so no savings to speak of, and certainly no super. Don’t we have the same costs in insurances – going up all the time, even though I don’t drive as far as most, registration (free Services NSW end, but still have to pay for CTP, roadworthy, servicing), food, fuel as other ‘regular’ Australians? Of course we do, but no one will acknowledge that!
I receive per FORTNIGHT approximately 27% of what the Total Average WEEKLY Male Earnings are – how can this be fair? It’s certainly not, and until we can get a ‘proper’ increase in our pensions, we’ll always be ‘on struggle street’.
The National Seniors Australia, in their proposal to the government for the next budget suggested that ALL pensioners receive a $10/15 per day increase in our payments ‘just to keep up with the everyday increases in our expenses’ – where’s any consideration for this? Even a $5/7.50 per day increase would have been something!
Source: NSA-2025-26-Federal-Budget-Submission.pdf, pages 5, 7 & 8.
We live in community housing and our rent relief given to us by the commonwealth government is taken away by the south Australian government. We don’t see a penny of it. But they look after the pensioners they say. I would have to disagree. That extra money would be so helpful.
There was basically nothing in this budget for pensioners. The basic pension rate is now alarmingly low and the rent assistance support is out of touch with housing prices – I couldn’t afford the rent in a major city.
The other thing that really irks me, as I work part time, is losing 50c in the dollar after the first $300 earnt. I need the money and am now working for $15/hour – pathetic. The government touts the Work Bonus scheme, but this actually the NOT Work Bonus scheme as you only earn credits when not working – seems to be an negative incentive to work.
Tend to agree.
This govt (and the lib opposition) are looking out for themselves and their fat wallets. I like suggestions by the Greens to fix the tax system: currently one in three companies pay NO tax in this country and if that were to be fixed then there would be more money in the budget to adequately fix Medicare (including the possibility of adding dental to it), give those on income support a meaningful increase. Neither party want to tackle the difficult issues – isn’t that why we vote them into office?
The only sure fire way to fix energy prices is to bring them back into govt hands, all these rebates do is nibble at the edges and the power companies get rich off the back of it and push prices higher still. A couple of years ago, the wholesale price for electricity fell by 70% but prices actually went up by 15%; if the assets (for which is an essential service) were in govt hands then they could set the price and not be dependent on external factors but again neither party want to make that tough call.
Time the two party system was dismissed and a third force showed how things should be done. I have high hopes for the Greens because at the moment both parties aren’t looking after those who vote them into office in the first place.
Single pension rise $2 extra a week won’t buy a loaf of bread + $150 for energy, already paid for in electricity rising higher rates. What an insult to Pensioners. Politicians want to live in the real world and get their heads out of the sand. Everyone has to pay tax.!!! 🤔
As I have said before, all companies earning money (Profit) in Australia should be paying their fair share of tax. Thos would bring millions or billions of dollars into the Gov coffers which would then allow the Gov to give pensioners and others a fair share of the dollars to help with their daily struggle of trying to live comfortably.