Over one million Australians will get more money from Centrelink starting January 1. This is because of the rising cost of living. The government is making these changes to keep up with inflation.
The Consumer Price Index (CPI) went up by 3.8 per cent in the last 12 months. This led the government to increase Centrelink payments. Social Services Minister Amanda Rishworth said, “Indexation means payments match cost-of-living changes, so people have more money.”
The government will spend $63.8 million a year on these increases. That’s $10.1 million every fortnight. It’s a big investment in helping those who need it most.
Major Highlights
- Over 1 million Australians to receive Centrelink payment increases from January 1
- Payments will rise by up to $30.60 per fortnight, varying based on individual circumstances
- Youth Allowance maximum rate to increase by $15 to $663.30 for single recipients without children
- Austudy and ABSTUDY payments to see adjustments of $24.30 to $30.60 per fortnight
- Carer’s Allowance to rise by $5.80 to $159.30 per fortnight for over 600,000 carers
Major Payment Increases Across Youth and Student Support
The government is making big changes to help Australians with money troubles. From January 1, 2025, over 1 million people will get more money to help them out.
Youth Allowance Rate Changes
Single people getting Youth Allowance over 18 and living at home will get an extra $17.30 every two weeks. This will make their maximum payment $670.30 every two weeks. If they live away from home, they’ll also get $670.30.
The rules for how much money parents can make and get Youth Allowance will also change. Now, parents can make up to $65,189 a year and get help.
You May Also Read
ABSTUDY and Austudy Adjustments
Austudy payments for students over 25 will go up by $24.30 to $26.30 every two weeks. Students without kids will get $670.30, and those with kids will get up to $845.80.
Indigenous students on ABSTUDY will also see their payments increase. They’ll get between $24.30 and $30.60 every two weeks. Single students with kids will get up to $845.80.
Support for Students with Dependencies
Students studying for higher degrees, like masters or doctorates, will get more money. They’ll get up to $54 more every two weeks. This is to help students with families who are studying.
| Payment Type | Increase per Fortnight | Maximum Fortnightly Rate |
|---|---|---|
| Youth Allowance (single, living at home) | $17.30 | $670.30 |
| Austudy (single, no dependents) | $24.30 | $670.30 |
| Austudy (single, with dependents) | $26.30 | $845.80 |
| ABSTUDY (single, with dependents) | $30.60 | $845.80 |
| Higher education allowance (masters/doctorate) | Up to $54 | N/A |
“These increases aim to provide much-needed support for young Australians and students, helping them navigate the financial challenges of pursuing their education and development.”
Centrelink Payment Increase: New Rates and Eligibility
The Australian government has announced a big increase in Centrelink payments. This will help over five million people. The changes will start on 20 September 2024 to help with the cost of living.
Age pensioners will get more money. Singles will get $28.10 extra each fortnight. Couples will get $42.40 more. The Disability Support Pension and Carer Payment will also increase by the same amount.
| Payment Type | Previous Rate | New Rate | Increase |
|---|---|---|---|
| Age Pension (Single) | $1,116.30 | $1,144.40 | $28.10 |
| Age Pension (Couple) | $1,682.80 | $1,725.20 | $42.40 |
| Disability Support Pension (Single) | $1,116.30 | $1,144.40 | $28.10 |
| Carer Payment (Single) | $1,116.30 | $1,144.40 | $28.10 |
Renting families will also get more help. The maximum Commonwealth Rent Assistance will go up by 10%. Families with one or two children will get $27.02 extra each fortnight.
The pension rates, allowance hike, and other financial aid are to help those in need. They aim to provide supplementary payments to vulnerable Australians. This will help them deal with the rising cost of living.
“These increases to Centrelink payments will make a real difference in the lives of millions of Australians, helping them to meet the rising cost of living and maintain their financial stability,” said the Minister for Social Services.
Enhanced Support for Carers and Disability Recipients
The Australian government is making big changes to help carers and people with disabilities. They want to give more flexibility, money, and access to important services. This is for those who face big challenges.
Carer’s Allowance Updates
Carers for people with disabilities, aged care needs, or chronic illnesses will get a $5.80 boost. This will make the Carer’s Allowance $159.30 every two weeks. Over 600,000 carers will benefit, showing how much they are valued.
Disability Support Changes
There are also changes to other Centrelink payments, like the Youth Disability Support Pension and Double Orphan Pension. These updates aim to offer more flexible and caring support. They help people with health issues find jobs.
Mobility Allowance Improvements
The Mobility Allowance, for those who can’t use public transport, will also get more money. This will help them get to important places and join in community activities.
These updates to carer’s allowance, disability support, and mobility allowance show the government’s dedication. They want to help vulnerable Australians get the help they need.
“These changes aim to provide more flexible and compassionate support for Australians facing health-related barriers to employment.”
With over 2.65 million carers in Australia, these changes are very important. They save the economy over $77 billion a year. The government’s efforts will greatly improve the lives of those in need. It will help them be more independent, secure, and happy.
the Cost of Living Adjustments
The Centrelink payments go up every year to keep pace with the cost of living adjustment and inflation rates in Australia. The consumer price index (CPI) shows inflation rose by 3.8% in the last 12 months. This led to the recent changes in payments.
Payments like JobSeeker and the Age Pension go up twice a year. This is to match the changes in prices better. Prices for food, housing, and transport have gone up a lot, affecting low-income families.
Even with these increases, many struggle to make ends meet on Centrelink payments. Over one million Australians will get more money from January 1.
| Payment Type | Increase per Fortnight |
|---|---|
| Age Pension (Single) | $28.10 |
| Age Pension (Couple) | $42.40 |
| Disability Support Pension (Single) | $1,144.40 |
| Disability Support Pension (Couple) | $862.60 |
| Commonwealth Rent Assistance (Single) | $23.00 |
| Commonwealth Rent Assistance (Family with 1-2 children) | $27.02 |
| JobSeeker Payment | $786.80 – $849.50 |
| Parenting Payment Single | $1,026.30 |
The consumer price index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI) guide the payment increases. These happen twice a year, on 20 March and 20 September. The latest increase is the biggest in pensions in over 14 years.
“Over five million Australians will receive increased income support payments from September 2024.”
While the increases help, many Australians face ongoing challenges. The Australian Council of Social Service suggests more frequent updates for Youth Allowance and Austudy to keep up with inflation rates.
Government’s Response to Financial Pressures and Future Outlook
The federal government is committed to keeping Australia’s social safety net strong. Minister Rishworth said, “We aim to help those in need and keep our social safety net strong.” They plan to do this with a $3.5 billion fund to help with electricity bills.
Advocacy groups say the government’s efforts don’t go far enough. ACOSS CEO Cassandra Goldie pointed out, “Living in poverty is tough, and these payments don’t cover basic needs.” They worry that many people will struggle financially.
The government wants to keep financial help up with inflation. They’re giving 2.6 million workers a 3.75% pay rise from July 2024. Also, 250,000 aged care workers will get a 15% pay rise. Their goal is to support those in need during tough times.
