People receiving the Age Pension, JobSeeker, ABSTUDY and Parenting Payment are among those to receive the boost. (Source: AAP/Getty)
Millions of Australians receiving Centrelink payments will see a small increase from next month when the latest round of indexation kicks in. Many social security payments are indexed twice a year, in March and September, to keep up with rising costs.
More than five million recipients will benefit from the cash boost, including more than 2.6 million age pensioners. Those receiving JobSeeker, ABSTUDY, Parenting Payment, Commonwealth Rent Assistance, the Disability Support Pension and Carer Payment will also see a boost from September 20.
Social Services Minister Tanya Plibersek said the indexation meant Aussies would have more to help cover everyday costs like groceries and healthcare.
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“The social security system must be grounded in fairness, which is why we adjust supports as the economy changes,” she said.
“We’ll continue to make sure the system is there to support those who need it most, ensuring that everyone can make ends meet and no one gets left behind.”
COTA Australia CEO Patricia Sparrow has welcomed the age pension increase and said it was one of the biggest increases to the rate over recent years.
“The idea that all older Australians are wealthy is a myth. In reality, over one in four live in poverty. For those struggling with skyrocketing costs, an extra $29.70 a fortnight will bring real relief,” she said.
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However, in a blow for age pensioners, the government has confirmed deeming rates will now be gradually returned to pre-pandemic settings.
Deeming rates have been frozen at 0.25 and 2.25 per cent since 2020, initially as an emergency pandemic measure. From September 20, the rates will increase to 0.75 and 2.75 per cent.
Sparrow said the change would no doubt come as a shock to some Aussies, but she said the move would give greater clarity to help Aussies plan and budget.
“Any decrease in fixed incomes is difficult for people to manage. However, staging the changes and coupling the introduction of the change with one of the largest pension increases in the past 60 years should offset the impact for many pensioners,” she said.
You can read more about the deeming rate changes here.
Age Pension recipients will see their maximum fortnightly payment go up to $1,178.70, an increase of $29.70. This takes into account the Pension Supplement and Energy Supplement.
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Partnered pensions will see their maximum fortnightly payment increase to $888.50 each, an increase of $22.40.
JobSeeker rates will increase to $793.60 per fortnight, up $12.50, for singles aged 22 or over with no children.
The partnered JobSeeker rate will increase to $726.50 each per fortnight, up $11.40.
ABSTUDY rates will also increase to $793.60 per fortnight, up $12.50, for those aged 22 or over living at home or away from home.
Parenting Payment maximum fortnightly rates will increase to $1,039.70, up $16.20, including the supplement and energy supplement.
Partnered parents will see their rate increase to $734.30 a fortnight, up $11.40.
You can see the full list of increases here.
Age Pensioners will also see changes to their income and asset thresholds.
The cut-off income threshold to receive a part pension will increase to $2,575.40 for singles, up $59.40 per fortnight. The threshold for couples will increase to $3,934, up $89.60 per fortnight.
The cut-off asset threshold to receive a part pension will increase to $714,500 for single homeowners and $972,500 for single non-homeowners, both up $10,000.
For couples, the cut-off will increase to $1,074,000 for homeowners and $1,332,000 for non-homeowners, both up $15,000.
Singles with taxable incomes below $101,105 and couples with incomes below $161,768 may also be eligible for a Commonwealth Seniors Health Card from September 20.
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