What It Covers
The Pension Supplement was introduced to simplify pension payments. It replaces several older allowances:
| Old Allowance | Absorbed Into |
|---|---|
| Pharmaceutical Allowance | Pension Supplement (~$80/fn single) |
| Telephone Allowance | |
| GST Supplement |
Who Gets It
You get the full Pension Supplement if you receive: Age Pension, Disability Support Pension, Carer Payment, or Parenting Payment Single at any rate above $0. It's automatically included — you don't need to apply separately.
Minimum Pension Supplement
If your pension is reduced to a very low amount (but still above $0) due to income or assets, you still receive a minimum Pension Supplement component.
Frequently Asked Questions
Do I need to apply for Pension Supplement?
No. It's automatically included in your pension payment. You don't see it as a separate line item — it's part of the total rate.
Is the Pension Supplement taxable?
It's included in your total pension amount, which is technically taxable income. However, most full pensioners pay no tax due to the Seniors and Pensioners Tax Offset (SAPTO).