Over 5.3 million Australians are set to benefit from increased social security payments in the coming weeks, thanks to the latest indexation adjustment.
Starting September 20, the adjustments will enhance the financial support given through payments such as the pension, JobSeeker, Youth Allowance, Parenting Payment, as well as ABSTUDY and Rent Assistance.
“An additional $4 billion aimed at easing the cost of living will soon reach over 5.3 million Australians,” Social Services Minister Tanya Plibersek stated.
“This added support will aid Australians on income support with essential expenses—be it housing, groceries, or their everyday bills,” she added, emphasizing the relief’s potential impact.
“We remain committed to ensuring the support system reaches those who need it the most, enabling everyone to manage their finances without fear of falling behind,” Plibersek concluded.
However, Cassandra Goldie, CEO of the Australian Council of Social Service, said that “while every extra dollar counts”, routine indexation was not enough to lift people out of poverty and deprivation.
“People receiving JobSeeker are struggling to afford three meals a day and keep a roof over their heads,” she said in a statement provided to SBS News.
“The government must deliver a significant real increase to JobSeeker, Youth Allowance, Parenting Payment and related supports so that people don’t have to go without the essentials.”
Social security payments are generally indexed twice a year to maintain their value and match changes in the cost of living and average wages. Here is how much each payment will increase by.
How much the age pension is increasing
The maximum rates for age pension will be lifted by $36.80 to $1,237.70 a fortnight for single pensioners. Couples will receive a $55.60 increase to their combined fortnightly payment, bringing it to $1,866.00.
Pay rates for non-resident single pensioners will increase by $5 a fortnight, while partnered non-resident pensions will increase by $1.70 a fortnight each.
What JobSeeker recipients will receive
For singles without children who receive JobSeeker payments, the highest rate increases by $16.20 to $833.70 every two weeks. For singles with dependent children, the rate will increase by $17.30 to $892.80.
The rate for couples will rise by $14.80 per person, bringing the fortnightly payment to $763 each.
Changes to parenting payment rates
Parenting payment recipients will also see an increase, with maximum rates rising by $20.90 to $1,087.20 fortnightly for singles and by $14.80 to $763 for partnered recipients.
Rent assistance to increase
One million renters will also receive increased Commonwealth Rent Assistance rates.
The maximum rent assistance will increase by $4.40 per fortnight for singles without children, bringing it to $223.80. Singles with one or two children will see a $5.18 rise to $211, while those with three or more children will get a $5.88 boost to $297.36.
The maximum payment for couples without children will increase by $4.20 to a combined rate of $211.
For couples with one or two children, the increase is $5.18, bringing the combined total to $263.06. For those with three or more children, the increase is $5.88, bringing the total to $297.36.
Youth Allowance payments are also rising
For those aged 18 to 24, youth allowance will increase by $20.90 to $1,087.20 from 20 September.
ABSTUDY rates to increase
Single Australians aged 22 or over receiving ABSTUDY with no dependent children will see their fortnightly payment rise by $16.20, bringing it to $833.70. Those with dependent children will see a $17.30 increase, taking their fortnightly payment to $892.80.
The payment for those aged 55 and above without dependent children will increase by $17.30, bringing it to $899.80.
For people aged 22 or older who are partnered, the ABSTUDY payment will increase by $14.80 to $763, whether or not they have children.
What else will change?
Alongside these indexation increases, the government has lifted social security deeming rates.
Deemed rates are used to calculate income from financial assets and to assess eligibility for government payments.
From 20 September, the deeming rate will increase from 1.25 per cent to 1.75 per cent for financial assets up to $66,800 for singles and $110,600 for couples combined.
For all financial assets exceeding the threshold, the rate has risen by 0.5 per cent to 3.75 per cent.