Millions of Australians on Centrelink payments will see a financial boost as the latest round of indexation takes effect next week. The changes, effective from March 20, will benefit over five million people, including pensioners, renters, and job seekers.
Centrelink Payments to Increase From March 20
The federal government announced that indexation adjustments will lead to a yearly increase of between $3913 and $5902 for eligible recipients. These changes build on previous increases introduced over the past three years.
For JobSeeker recipients, the yearly increase will range between $3374 and $5038, depending on eligibility. This adjustment aims to support Australians facing financial difficulties due to rising living costs.
Pensioners to Receive the Biggest Increase
Pensioners will receive the most significant boost in Centrelink payments. The maximum single rate for the age pension, disability support pension, and carer pension will rise by $4.60 to $1149 per fortnight.
Couples receiving the pension will see their maximum rate increase by $3.50 to $866.10 per fortnight. Combined payments for pensioner couples will rise by $7, reaching $1732.20 per fortnight. These rates include the pension supplement and energy supplement.
Social Services Minister Amanda Rishworth highlighted the importance of indexation in supporting Australians.
“Indexation is a critical part of our social security safety net,” she said.
“For pensioners and other payment recipients receiving this financial boost, this will help ease some pressure.”
JobSeeker and Parenting Payments Also Set to Rise
JobSeeker recipients will also see an increase, though it is more modest. A single recipient aged 22 or over without children will receive an extra $3.10 per fortnight, bringing their total payment to $789.90, including the energy supplement.
For couples on JobSeeker, payments will increase by $2.80 per fortnight. While these increases are small, they still provide some financial relief.
Single parents on the parenting payment will get an additional $4 per fortnight, bringing their total payment to $1030.30. This includes the pension supplement, pharmaceutical allowance, and energy supplement.
Cost-of-Living Pressure Ahead of the Federal Election
The latest indexation changes come just months before the next federal election. Cost-of-living pressures remain a key issue for many Australians.
Social security payments undergo indexation twice a year in March and September. The upcoming adjustment will be the final one before voters head to the polls.
Social Services Minister Amanda Rishworth emphasised the government’s commitment to strengthening Australia’s social security system.
The Albanese government has “spent the past three years strengthening our social security system, so that it helps Australians at whatever age or stage they’re at in life,” she said.
Impact on Australians Relying on Centrelink Payments
The increase in Centrelink payments will help Australians manage everyday expenses. However, some recipients argue that the rise does not go far enough to address the growing cost of living.
A single JobSeeker recipient’s yearly increase of $72.80 is less than half the national average weekly grocery bill.
Despite this, the government remains firm in its commitment to social security. Over the past two federal budgets, the Albanese government has allocated $11.5 billion to improving Centrelink payments.
A Closer Look at Payment Increases
Here is a breakdown of how much recipients will receive after indexation:
- Single Age Pension, Disability Support Pension, and Carer Pension Recipients: Increase of $4.60 to $1149 per fortnight.
- Partnered Pensioners: Increase of $3.50 to $866.10 per fortnight per person, or $7 to $1732.20 per fortnight per couple.
- Parenting Payment Single Recipients: Increase of $4 to $1030.30 per fortnight.
- Single JobSeeker Recipients (22+ without children): Increase of $3.10 to $789.90 per fortnight.
- JobSeeker Couples: Increase of $2.80 per fortnight per person.
Ongoing Support for Low-Income Australians
The Albanese government has focused on improving support for Australians relying on Centrelink payments. Since Labor took office in 2022, single parents have received an annual increase of at least $7579.
While some recipients say the increases are not enough, others welcome the additional support. The government says these changes reflect its commitment to easing financial pressures on struggling Australians.
With the next indexation due in September, social security recipients will watch closely for further adjustments to Centrelink payments.
