Australians will pay more for stamps as age pensioners, the unemployed, university students, renters and parents get a cost-of-living boost but at least borrowers are more likely to be spared another interest rate rise next month with economists expecting inflation to ease.<\/p>\n
The start of spring on September 1 will coincide with Australia Post charging 15 cents more for a postage stamp, which from next month will cost $1.85 after the Australian Competition and Consumer Commission approved of the increase.<\/p>\n
Centrelink payments increasing on September 20<\/p>\n
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By continuing you agree to our Terms<\/a> and Privacy Policy<\/a>.<\/p>\n September 20 also coincides with the twice-yearly indexation of key Centrelink benefits for 5.3 million recipients, that track either movements in pensioner living costs or inflation over six months, costing the Budget $4 billion.<\/p>\n \u201cWhether it\u2019s paying the rent, putting food on the table or covering everyday bills, this extra support will help Australians on income support make ends meet,\u201d Social Services Minister Tanya Plibersek said.<\/p>\n \u201cWe\u2019ll 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.\u201d<\/p>\n How much will the age pension increase?<\/p>\n The age pension on that day is increasing by 3.2 per cent or $35.10 a fortnight to $1135.40, with the increase in line with the pensioner and beneficiary living cost index rise in the six months to June 30, as measured by the Australian Bureau of Statistics.<\/p>\n The deeming rate, or the interest on financial assets used to calculate benefit eligibility, will also increase to 1.75 per cent for financial assets up to $66,800 for singles and $110,600 for couples combined, with a rate of 3.75 per cent for any financial assets above the threshold.<\/p>\n JobSeeker, Youth Allowance, parenting payments and Rent Assistance also rise<\/p>\n JobSeeker benefits for the unemployed are increasing by 2 per cent or $16.20 a fortnight to $824.90, with that increase reflecting the growth in headline inflation over six months.<\/p>\n That includes the 1.4 per cent increase in the consumer price index during the March quarter and the 0.6 per cent increase during the June quarter.<\/p>\n Abstudy is increasing by the same dollar amount as JobSeeker while Youth Allowance is increase by $20.90 a fortnight, or by 2 per cent, to $1068.20.<\/p>\n Parenting payments are also increasing by 2 per cent, or $20.30 a fortnight to $1037.50, while Commonwealth Rent Assistance also rises by 2 per cent, or $4.40 a fortnight to $223.80.<\/p>\n Why are Centrelink payments changing?<\/p>\n Headline inflation is the benchmark for a series of Centrelink payments, based on movements in the September and December quarters for the March 20 indexation, and the March and June quarters for the September 20 indexation.<\/p>\n Inflation tipped to ease <\/p>\n The consumer price index, which includes all volatile items like petrol prices, is expected to show further easing in July, when the ABS releases new data on Wednesday.<\/p>\n Westpac and NAB are expecting the CPI to have eased to 3.3 per cent in July, down from June\u2019s annual pace of 3.8 per cent, which would mark the most moderate inflation since August last year.<\/p>\n The Commonwealth Bank, Australia\u2019s biggest home lender, is expecting an even more moderate 3.2 per cent annual inflation pace.<\/p>\n Even so, optimistic predictions would still have headline inflation above the Reserve Bank\u2019s 2-3 per cent target for the 12th consecutive month.<\/p>\n July did include the Federal Government\u2019s tapered fuel tax relief of 16 cents a litre which expired on August 2.<\/p>\n This could potentially reduce headline inflation before a potential spike occurred again in August.<\/p>\n Will the RBA raise interest rates in September?<\/p>\n The Reserve Bank of Australia\u2019s August 10 and 11 meeting minutes, released on Tuesday, revealed the nine monetary policy board members had considered either a hike or hold, with the cash rate ultimately left unchanged at 4.35 per cent.<\/p>\n \u201cHaving considered these various arguments, members judged it appropriate to leave the cash rate target unchanged at this meeting, while remaining alert to the upside risks to the inflation outlook and being ready to act should they materialise,\u201d it said.<\/p>\n \u201cMembers agreed that the prevailing cash rate appeared to be working to bring the economy gradually back into balance and that the data received since the previous meeting had been consistent with this observation.<\/p>\n \u201cThe board will remain focused on its mandate to deliver price stability and full employment and will continue to do what it considers necessary to achieve that outcome, including increasing the cash rate target if upside risks materialise.\u201d<\/p>\n Despite a warning of another rate rise, the 30-day interbank futures market sees another rate rise on September 29 as a zero per cent chance, sparing borrowers from grappling with a 15-year high RBA cash rate of 4.6 per cent.<\/p>\n But ANZ is warning a hike is still possible at the November meeting.<\/p>\n \u201cWe don\u2019t think there will be enough new information for these risks to manifest by the September meeting,\u201d ANZ senior rates strategist Jack Chambers said.<\/p>\n \u201cBut the November meeting remains at least a risk for a hike, even if it is not our expectation.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Australians will pay more for stamps as age pensioners, the unemployed, university students, renters and parents get 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