The Federal Government has confirmed it will impose a new pension age of 67 for the first time.
The move is expected to be rolled out to all people over the age of 65 by the end of the year.
But the changes come after more than two years of speculation about the exact age at which people would be able to retire.
The Government said the changes would be rolled into the Medicare levy at the same time as the new pension system, which is currently set at 70 per cent of the median salary.
The changes have been welcomed by the Government, with Treasurer Scott Morrison calling the changes “transformational”.
“As we approach the transition to a new system, we will work with stakeholders to find the best way to implement this new system while ensuring the system works for everyone,” he said.
The new age for the retirement age will be rolled in at the start of 2018.
The Age Discrimination Commissioner will be able make an interim ruling on the matter in the coming months.
What’s the new age?
The Age Discrimination Commission has already said it will “evaluate” the Government’s plans for the age for retirement, which it is expected will be set at 67.
The move will come after months of speculation that people would start hitting the 67-year-old limit as early as the end, after years of arguing the Government would not meet that benchmark.
The age for people to qualify for the Medicare Levy will rise to 67 from the current 65, and there will be a limit on the number of years that people can receive Medicare benefits.
This is expected later this year.
What are the rules for Medicare?
Medicare payments will be capped at a maximum of $10,000 a year for those over 65, which will come into effect from 1 July 2019.
There will be an extra cap of $8,000 in the year 2020.
Medicaid recipients aged 60-64 will also be able take on a new age pension of up to $30,000 for the next five years.
More than 1.3 million people are currently over the 65-year limit.
How much will it cost me?
According to the Government there will still be a cost to retirees in the long term.
But with the new retirement age being 67, it means the average salary for an aged pensioner would be $4,400.
The cost of a one-off pension of $40,000 will be $1,000, with the cost of living indexed to inflation.
Can I keep my Medicare card?
If you are over the 66-year age limit, you will be allowed to keep your Medicare card but will not be able buy a new one.
If your current Medicare card is not valid you will have to get a new card or get it replaced.
There is a $20 surcharge for Medicare beneficiaries over 65.
This means you will pay $20 to get your Medicare pension back.
But you can keep the current Medicare Card.
Your Medicare card will be replaced if your current card is invalid.
For the past decade, Medicare has allowed people over 65 to get one-offs.
Under the new rules, people over 66 will only be able get a one off pension or get their Medicare card replaced.
What’s the difference between Medicare and Disability?
There are a number of different things about the Medicare system, but the main one is that Medicare is funded by the Australian Government.
That means you pay into the system for the same length of time as you would pay into an employer pension scheme.
In addition, Medicare covers all workers, regardless of age.
You are not eligible for Medicare if you are: unemployed or in a low paid job, or have health conditions such as diabetes, heart disease or cancer.
Not a full-time employee, a member of the aged pension scheme or have any other benefits such as pension or income support.
Are there any exceptions to the age pension rules?
No, there is no limit on what you can get paid into the scheme, but you must be under 65 to start receiving payments.
Age discrimination legislation prohibits discrimination on the basis of age, race, gender, religion, disability, marital status or pregnancy.
Why do the government and other states have different rules for the ages of pensioners?
States have different retirement age requirements and different rates of payments for Medicare.
States have also decided to cap the amount they can make out of Medicare.
While the age limits for the various pension schemes differ, the Government has said there will always be some difference in payments to people who are under the age-specific thresholds.
Topics:health,government-and-politics,workers,government,national-parliament,social-policy,medicare-act,australiaFirst posted September 15, 2018 05:54:46Contact Nicola LeightonMore stories from Australia