PEOPLE who go on the pension or Newstart allowance after September 20 will be paid less under budget changes that abolish carbon tax compensation for new pensioners.
The change, which has raised the ire of seniors’ advocates, means new single age pensioners will receive about $14 a fortnight less than people who are already on the pension.
Older jobseekers who claim the Newstart allowance will receive about $9 a fortnight less than someone already receiving the payment.
New Veterans Affairs pensioners will receive about $21 a fortnight less. People already on the pension will not be affected.
Treasurer Scott Morrison said the compensation was no longer needed because the carbon tax had been abolished.
The savings of about $1.4 billion over five years will be funnelled into a new National Disability Insurance Scheme savings fund.
Council on the Ageing national president Ian Yates said the changes amounted to a cut, particularly as Newstart was already inadequate.
He said his organisation opposed the singling out of new income support recipients to bear the cost of budget savings. “The rest of the population enjoys the benefits of the restructured income tax arrangements put in place for the carbon tax, (and) compensation remains appropriately in place for income support recipients,” Mr Yates said.
“It is absurd that we will have two levels of pension for the next three decades or so.”