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On March 20, a significant increase is set to roll out for several social welfare payments, including pensions, rent assistance, JobSeeker, ABSTUDY, and parenting payments, as they adjust in response to inflation.
This adjustment will notably benefit more than 2.5 million individuals, particularly through the pension increase. The government projects that recipients on a full single rate will experience a $22.20 rise in their fortnightly payments.
While these figures provide a preliminary estimate, the government has noted that the precise details will be confirmed in the upcoming weeks.
In light of these changes, a recent study by COTA, an organization advocating for those over 50, revealed a concerning statistic: one in four older Australians is currently living in poverty.
Patricia Sparrow, COTA’s chief executive, remarked, “Many older Australians are carefully managing every dollar, and additional income will help ease pressure on household budgets.”
“While it won’t solve the cost-of-living pressures many people face, an increase in the pension will make a small difference when it comes to managing rising costs for essentials like food, energy, insurance and healthcare.”
Changes to deeming rates, which are a way to assess social security payments based on the income people earn from their financial assets, will also come into effect from March 20.
The Australian Government Actuary recommended the government lift deeming rates, which it has accepted.
The lower deeming rate will be increased by 0.5 per cent to 1.25 per cent for financial assets under $64,200 for singles and $106,200 for couples, and the upper rate will be 3.25 per cent for financial assets over these amounts.
Social Services Minister Tanya Plibersek said this was to ensure the social security system delivers value for taxpayers and is grounded in fairness.
“We’ll 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,” she said.
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