Age pensioners will not receive their anticipated September payment boost as the pandemic cripples the economy.
Department of Social Services officials have confirmed to a parliamentary committee that consumer prices fell by 1.9 per cent in the June quarter, taking annual inflation to minus 0.3 per cent. Pensions traditionally rise each March and September in line with inflation.
According to advocacy group the Combined Pensioners and Superannuants Association, the last time the pension did not increase was in 1931, when it was reduced from $104 to $78 a year.
Prime Minister Scott Morrison told media he and the Treasurer would look at the situation saying that age pensioners had already received an extra $1500 in payments as part of the pandemic response.
Job Seeker payments will also not rise.