More than five million Australians are set to receive a Centrelink boost next month, which will benefit job seekers, carers, and those with a disability.
Indexation of pensions and payments, including the Age Pension, Disability Support Pension and Carer Payments, Commonwealth Rent Assistance, JobSeeker, and Parenting Payments, will put more money in people’s pockets from March.
But those on the dole are set to see smaller increases next year because inflation has moderated.
The amount of the increase will be based on highest rate of inflation figure from a selection of measures including the latest Consumer Price Index and weekly wage changes, or the Pensioner and Beneficiary Living Cost Index for the Age Pension,
The indexed payments are determined twice a year, in September and March, to help maintain their value over time and help welfare recipients cope with the cost of living crisis.
In September 2024, the Age Pension increased by $28.10 per fortnight for singles, bringing the maximum rate to $1,144.40, while each member of a couple will receive an additional $21.20, totalling $1,725.20.
The Disability Support Pension and Carer Payment saw the same increases, with singles receiving $1,144.40 and couples $862.60 each per fortnight.
Commonwealth Rent Assistance rose by 10 per cent, with singles without children getting an extra $23, couples an extra $21.80, and families with children an additional $27.02.
Meanwhile, JobSeeker increased by $15.30 for singles without children and $16.30 for those with children, while those with a partial capacity to work saw a larger increase of $71.20.
Millions of Australians are in line for some much needed cost-of-living relief with Centrelink payments to be increased from next month
How it’s calculated
The 2.5 per cent increase in the age pension was based on the 3 per cent increase in average, male earnings in the year to May and the 2 per cent increase in inflation in the March and June quarters.
The age pension increase for March won’t be known until the Australian Bureau of Statistics releases average weekly ordinary times earnings data for November on February 20.
The 2 per cent increase in unemployment benefits in September was based on the 2 per cent increase in the consumer price index in the March and June quarters.
But inflation has since moderated, which means the dole will only go up by 0.4 per cent in March based on the CPI increasing by 0.2 per cent in the September and December quarters.
That means JobSeeker will only be increasing by $3.11 to $781.11 on March 20 unless the dole is linked to another, higher benchmark.
Indexation is based on the latest, available government data at the time.
In September, Social Services Minister Amanda Rishworth said that the indexation increases would assist Australians in struggling with paying their bills.
‘Indexation, together with our budget measures, means maximum rates of Commonwealth Rent Assistance will have increased by around 45 per cent since the Albanese Government was elected,’ she said at the time.
‘This indexation will deliver timely boosts to people receiving allowance payments and pensions, ensuring that these vulnerable cohorts have more money in their pockets for everyday expenses.’
