More than five million Australians will receive a cash boost on Friday.<\/p>\n
The payments increases will come as a result of the bi-annual indexation of Centrelink<\/a> and Services Australia payments, and changes to the rules that determine income and financial assets.<\/p>\n The indexation boost is expected to be about $22.20 fortnightly for full single rate of Age Pension, Disability Support Pension or Carer Payment.<\/p>\n Know the news with the 7NEWS app: Download today Arrow<\/a><\/p>\n Rent Assistance, JobSeeker, ABSTUDY (age 22 and over), and Parenting Payments will also get a boost.<\/p>\n For single Jobseeker recipients without dependents, that increase is expected to be about $15.10, or $13.80 for couples receiving the payment.<\/p>\n The Rent Assistance boost is not likely to be more than $4 a fortnight for recipients.<\/p>\n Indexation allows the payments to maintain value against the rising cost of living.<\/p>\n The indexation figures are based on the Consumer Price Index, unless wage rates or the Pensioner and Beneficiary Living Cost Index are higher, in which case the relevant payments will be adjusted in line with those metrics instead.<\/p>\n Exact indexation rates changes will be released on Friday, when the payment increases come into effect.<\/p>\n \u201cThanks to indexation, more than five million Aussies should expect to see a boost to their payments,\u201d Social Services Minister Tanya Plibersek said.<\/p>\n Deeming rates will be updated at the same time.<\/p>\n \u201cDeeming was introduced over 30 years ago and is a simplified way of assessing how much income people can earn from their financial assets,\u201d Plibersek said.<\/p>\n \u201cIt recognises these assets provide a source of income for people and is a fair way to ensure our social security system directs support to those who are most in need.<\/p>\n \u201cThe Australian Government Actuary (AGA) has made a recommendation to lift deeming rates, which the government has accepted.\u201d<\/p>\n The lower deeming rate will be updated to 1.25 per cent for financial assets under $64,200 for singles. For couples, the rate will be applied to assets of a combined $106,200.<\/p>\n An \u201cupper rate\u201d of 3.25 per cent will be applied to financial assets over these amounts.<\/p>\n This will be the second time deeming rates have changed since they were paused during COVID.<\/p>\n \u201cThe new rates are still well below historical averages and the AGA advises they are achievable through investments like readily available savings accounts at a major bank,\u201d Plibersek said.<\/p>\n <\/p>\n Grim message as cyclone set to impact three states and territories <\/p>\n 2 min read<\/p>\n