Millions to Benefit from 1 July Payment Increase
Centrelink payment rates, thresholds and limits have risen by 2.4 per cent today. The increase is part of regular indexation to ensure payments match cost-of-living pressures. Over 2.4 million Australians will benefit from the updated rates and thresholds.
Social Services Minister Tanya Plibersek confirmed the government’s focus on addressing financial pressures. “From 1 July, millions of recipients of social security payments will see more money in their bank accounts,” she said. “Payments like the Family Tax Benefit help cover the costs of raising children for many Australian families, and indexation is a crucial way to help families when cost of living rises.”
Family Tax Benefit Receives a Boost
Families receiving Family Tax Benefit Part A will now receive up to $227.36 a fortnight, up $5.32. For families with children aged 13 or over, the rate increases to $295.82 a fortnight, up by $7.
Family Tax Benefit Part B payments have increased to $193.34 per fortnight, up $4.48. Families with children aged over five will receive $134.96 per fortnight under the new rate.
Newborn and Multiple Birth Allowances Rise
First-time parents receiving the Newborn Supplement will now receive $2,052.05 over 13 weeks, up by $48. The Multiple Birth Allowance has also increased to $196.56 per fortnight for triplets. Parents of quadruplets or more will receive $261.94 per fortnight.
Paid Parental Leave Improvements Take Effect
Paid Parental Leave now covers 24 weeks, up from 22 weeks. Parents can now take four weeks off simultaneously, up from two. The individual income limit for Paid Parental Leave has increased to $180,007 annually. The family limit has increased to $373,094 per year.
Superannuation will now be paid on the government Paid Parental Leave payment. The super guarantee rate has increased to 12 per cent from today.
Age Pension Thresholds Increase With Indexation
The Age Pension payment rates remain unchanged. However, income and asset thresholds have increased by 2.4 per cent to align with inflation. The changes will allow more Australians to qualify for full or part pensions.
Around 2.6 million Australians currently receive the Age Pension. The pension amount remains $1,149 per fortnight for singles and $1,732.20 combined for couples. Payments continue to be indexed in March and September each year.
Higher Income Limits for Pensioners
Singles can now earn up to $218 per fortnight, up from $212, and still qualify for the full pension. Couples can earn $380 per fortnight, an increase of $8.
The income cut-off limit for singles is now $2,516 per fortnight. For couples, it has increased to $3,844.40. Income includes wages and returns from financial assets like savings and superannuation.
Under the Work Bonus, pensioners can earn up to $300 in employment income per fortnight without affecting their pension.
Asset Thresholds Lifted for Homeowners and Non-Homeowners
Single homeowners can now have assets of up to $321,500 and still receive the full pension, up from $314,000. Couples can hold up to $481,500 in assets, up from $470,000.
The new part pension cut-off for single homeowners is $704,500, an increase from $697,000. For couple homeowners, the new threshold is $1,059,000, up from $1,047,500.
Single non-homeowners can hold $579,500 in assets and receive the full pension, up from $566,000. Couples can now have $739,500 in assets, up from $722,000.
The cut-off for part pension for single non-homeowners is now $962,500, up from $949,000. For couples, it is $1,317,000, up from $1,299,500.
Assets assessed include cars, business assets, investment properties, superannuation balances, and investments, excluding primary residences.
Deeming Thresholds Adjusted to Reflect Rising Costs
Deeming thresholds have also increased today. For singles, the lower threshold has increased to $64,200, up from $62,600. For couples, the threshold is now $106,200, up from $103,800.
Amounts under the threshold are deemed to earn interest at 0.25 per cent. Amounts above this threshold are deemed to earn interest at 2.25 per cent. The deeming rule allows the government to assess income from financial assets without calculating actual returns.
These adjustments mean more income will be assessed at the lower deeming rate, potentially resulting in slightly higher payments for recipients.
Government Continues Support Amid Living Cost Pressures
The government says regular indexation is vital in supporting Australians as living costs rise. These adjustments reflect a continued effort to ensure social security recipients do not fall behind. The changes apply automatically and appear in recipients’ bank accounts starting today.
