Allowances and Pensions PDF Print E-mail
Written by Travis Morien   
A pension is different to an allowance in that a pension is supposedly a permanent payment, or one with the potential to be permanent. An allowance is what you get paid while looking for work, the idea being that you are actively taking steps to get off this payment. In general the payment rates for allowances are lower than pensions, and the means tests can be harsher. In another article I will expand on the difference between pensions and allowances a little further, including the different means tests applied to recipients.

 

Allowances

The following are Newstart's allowances:
  • Newstart Allowance
  • Partner Allowance
  • Sickness Allowance
  • Special Benefit
  • Widow Allowance
  • Mature Age Allowance (after 1/7/96)

Pensions

The following are classified as pensions and are assessed under the pension and allowance tests:
  • Age Pension
  • Disability Support Pension
  • Carer Payment
  • Wife Pension
  • Widow B Pension
  • Bereavement Allowance
  • Mature Age Allowance (before 1 July 1996)
  • Mature Age Pension Allowance

The age pension age is 65 for men, but some women can get it earlier, depending on their date of birth:

Date of birth Qualifying age
July 1, 1935 to December 31, 1936     60.5
January 1, 1937 to June 30, 1938 61.0
July 1, 1938 to December 31, 1939 61.5
January 1, 1940 to June 30, 1941 62.0
July 1, 1941 to December 31, 1942 62.5
January 1, 1943 to June 30, 1944 63.0
July 1, 1944 to December 31, 1945 63.5
January 1, 1946 to June 30, 1947 64.0
July 1, 1947 to December 31, 1948 64.5
January 1, 1949 onward 65.0

Payments

Confused by pensions and allowances? There is another class again, the "payment". The following are Centrelink payments.
  • Family tax Benefit
  • Child Care Benefit
  • Youth Allowance
  • Rent Assistance
  • Pharmaceutical Allowance
  • Telephone Allowance
  • Mobility Allowance
  • Remote Area Allowance
  • Education Entry Payment

 

 

Note that Centrelink change the list of Allowances, Pensions and Payments from time to time, so for more information visit Centrelink's website and download a copy of Centrelink's "Guide to Australian Government Payments" booklet.

 

 
 
Next >
[ Back ]