A number of Centrelink payment rates will increase from January 1, including Youth Allowance, ABSTUDY and Austudy. (Source: AAP/Getty)
Centrelink payment rates will increase for more than one million Australians from January 1, when the latest round of indexation comes into effect. Social security payments are indexed every year to help ensure they keep up with rising costs.
Youth Allowance, Austudy, ABSTUDY, Youth Disability Support Pension and Carer Allowance recipients will see changes to their payment rates. Income thresholds for student payments will also increase, along with the parental income test threshold for Youth Allowance and ABSTUDY.
Social Services Minister Tanya Plibersek said more than one million Australians balancing study or caring responsibilities would receive a “boost” to their payments, thanks to indexation.
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“Social security recipients may also benefit from Labor’s tax cuts, increased rent assistance, cuts to student debt, free TAFE, cheaper medicines, more bulk billing and a whole range of other cost of living measures we’ve delivered since coming into Government,” she said.
“We’ll continue to make sure our social security system is there to support those who need it most, ensuring that everyone can make ends meet and no one gets left behind.”
Other payments, including the Age Pension and JobSeeker, are indexed twice a year in March and September.
Youth Allowance single adult recipients with no dependents living away from home will see their maximum basic rate increase to $677.20 a fortnight, an increase of $13.90.
The income-free area will increase to $539, while the upper income threshold will increase to $646. The maximum income you can earn before your payment is reduced to $0 will be increased to $1,261.50 a fortnight.
Austudy single recipients will also see their maximum basic rate increase to $677.20, an increase of $13.90, while ABSTUDY recipients will also see their basic rate for independent singles aged 16 to 21 increase to $677.20.
The maximum basic rate for Masters and Doctorate Students will increase to $1,316.20 per fortnight, an increase of $30.80.
The Disability Support Pension for under 21s with no kids will increase to $581.50 per fortnight for dependents under 18 and $839.80 per fortnight for independents under 18.
For singles aged 18 to 20, it will increase to $645 per fortnight for dependents and $839.80 per fortnight for independents.