While it has been confirmed the base age pension payment will not receive its usual September indexation rise because of deflation, Mr Morrison said his government was exploring how else it could support pensioners.

"You'll know that some $1,500 dollars in additional payments have been made to pensioners this year on top of their base pension as part of the pandemic response," Mr Morrison said.

"And that was done in July and in April. So already pensioners have received two bonus payments so far this year.

"But the Treasurer and I will work through those issues. It was not intended and nor will it be the case that you'd see those payments reduced.

"And we'll work out the exact response to the circumstances and will announce that when a decision has been made." 

Need somewhere to store cash and earn interest? The table below features introductory savings accounts with some of the highest interest rates on the market.

Provider

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
Disclosure

Savings Account

  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
Disclosure
400$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
Disclosure

Savings Accelerator

  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
Disclosure
02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
Disclosure

Online Savings - Premium Saver

    Disclosure
    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • Earn up to 5.20% pa by depositing $1,000 in the previous month
    • No account fees
    • Easy access to your money
    Disclosure

    AMP Saver Account

    • Earn up to 5.20% pa by depositing $1,000 in the previous month
    • No account fees
    • Easy access to your money
    Disclosure
    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • Deposit at least $1,000+ each month from an external source
    • Make 5 or more eligible transactions
    • Grow your savings balance each month
    Disclosure

    Savings Maximiser

    • Deposit at least $1,000+ each month from an external source
    • Make 5 or more eligible transactions
    • Grow your savings balance each month
    Disclosure
    020000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    HomeME Savings Account (<$100k)

      02001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Growth Saver

        01000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        Virgin Money Boost Saver

          01001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          Bonus Saver Account

            01000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

            Bonus Saver

              0100$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

              mySaver

                000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                Simple Saver

                  4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                  Netsave Account

                    3000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                    Online Savings Account

                      3000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                      HSBC Everyday Savings Account

                        0501$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                        Incentive Saver Account

                          4000.01$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                          Bankwest Easy Saver

                            0502$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                            Bonus Saver

                              000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                              Save Account

                                0500$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                                Incentive Saver Account

                                  Important Information and Comparison Rate Warning

                                  All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of November 9, 2024. View disclaimer.

                                  Important Information and Comparison Rate Warning

                                  Mr Morrison said despite the pandemic, Treasury had not expected Australia to experience deflation and budgets had not been prepared on this basis. 

                                  The age pension typically receives automatic increases in September and March to keep up with inflation.

                                  However, with Australia experiencing deflation for the first time since 1998, the Department of Social Services (DSS) confirmed on Tuesday there would be no increase to the pension until March 2021 at the earliest. 

                                  Speaking to a parliamentary committee, DSS deputy secretary Nathan Williamson said payments would essentially be frozen at their current rate. 

                                  “Based on the calculation for indexation, if it’s negative, we don’t reduce the pension, but we also don’t increase it,” Mr Williamson said.

                                  Linda Burney, Shadow Minister for Families and Social Services, said other payments, including the Disability Support Pension, Carer Payment and JobSeeker Payment, wouldn't be indexed either.

                                  “This is the worst possible time to be putting the squeeze on the household budgets of seniors and the most vulnerable,” Ms Burney said.

                                  “Pensioners have been facing rising health, dental, energy and grocery bills for years. And now they are set to go a full year without payment being indexed.

                                  “With interest rates at record lows, pensioners with modest savings are facing a double whammy." 

                                  The base rate for the age pension is currently $860.60 per fortnight for a single, or $1,297.40 for couples.

                                  Pensioners received $750 stimulus payments in April and June as part of the government's COVID-19 support package.