Is $273 per week enough?

The Treasurer’s recent admission that he could not live on the single age pension – which is $273 per week – and the Opposition’s proposal to immediately increase the age pension rate by $30 per week – has created political momentum for a review of the age pension rate.

How the Government manages to control this momentum will be interesting.   The relaxation of the assets test introduced as part of the Costello Superannuation Reforms has led to a significant increase in the number of part pensioners.

Consequently, any increase in the age pension rate above the normal CPI increases may have considerable cost implications.