Millions of Australians who rely on Centrelink payments are set to receive increased financial support to help them cope with the ongoing cost-of-living crisis. However, some individuals argue that these increases might not be enough to address the financial challenges they face.
Key Centrelink Payment Increases
Several important payments will see an increase, benefiting over five million Australians. The following payments are being adjusted:
- Pension
- JobSeeker
- Parenting Payment
- Pensioner Payment
- Carer Payment
- Commonwealth Rent Assistance
Payment Increase Details
The adjustments will take effect from Thursday, March 20, and the following changes will be made:
1. Pension Increase
- Single pensioners will see a $4.60 increase to their fortnightly payments, bringing the total to $1,148.
- For couples, each member will receive an additional $3.50 per fortnight.
2. JobSeeker Payment Changes
- Singles aged 22 and over without children will receive an increase of $3.10, raising their payment to $789.90 per fortnight.
- JobSeekers who have children will see an increase of $3.30 every two weeks.
- Singles over 22, assessed with partial workability, will also see an increase of $3.30 per fortnight.
- JobSeekers with a partner will receive an extra $2.80 every two weeks.
3. Rent Assistance Increase
- For single individuals claiming rent assistance under the Social Security Act, there will be an increase of $0.80 to $212 per fortnight.
- Couples claiming rent assistance will receive the same $0.80 increase, bringing their total to $212.
- For shared accommodation, the sharer payment will rise by $0.53, bringing it to $141.33 per fortnight.
4. Parenting Payment Adjustments
- Single parents will see a $4 increase to their fortnightly payment.
- Eligible partnered parents will receive an extra $2.80 every two weeks.
Government’s Efforts and Reactions
Social Services Minister Amanda Rishworth emphasized that the government is committed to supporting Australians through the cost of living pressures.
According to her, indexation plays a crucial role in the country’s social security safety net, providing necessary financial relief for pensioners and other payment recipients.
She added that Labor allocated $11.5 billion to the social security system in both the 2023/24 and 2024/25 federal budgets to address these pressures.
Critics of the Increase
Despite the boost, Cassandra Goldie, the Australian Council of Social Services CEO, voiced concerns about the impact of these modest increases. She argued that the increase of just 22 cents per day to JobSeeker payments would have little effect on those struggling financially.
According to Goldie, for the government to seriously address the cost of living crisis, it must significantly raise the income support payments, ideally to at least $82 a day, aligning them with the age pension.
Goldie stated that the solution to ending poverty is straightforward—raise the rate, as anything less keeps people hungry, sick, and struggling.
When Can You Expect These Increases?
The upcoming changes will take place four times a year, with these adjustments helping to offset the rising cost of living.
The increase is primarily influenced by inflation, which has been high in recent years. As a result, the adjustments have been more substantial during periods of high inflation.
Summary of Payment Increases
| Payment Type | Increase Amount per Fortnight | New Payment Amount |
|---|---|---|
| Single Pension | $4.60 | $1,148 |
| Couple Pension | $3.50 per member | Varies based on couple’s eligibility |
| JobSeeker (No Children) | $3.10 | $789.90 |
| JobSeeker (With Children) | $3.30 | Varies |
| Partial Workability (22+) | $3.30 | Varies |
| JobSeeker (With Partner) | $2.80 | Varies |
| Rent Assistance (Single) | $0.80 | $212 |
| Rent Assistance (Couple) | $0.80 | $212 |
| Sharer Payment | $0.53 | $141.33 |
| Parenting Payment (Single) | $4.00 | Varies |
| Parenting Payment (Partnered) | $2.80 | Varies |
While the Centrelink payment increases offer some relief to millions of Australians facing financial hardship, critics argue that these rises may not be sufficient.
With pensioners, JobSeekers, and parents receiving modest boosts, it remains to be seen whether the adjustments will effectively ease the pressure of rising costs for those most in need.
The conversation continues, with calls for more substantial support to address the deeper financial challenges many face.
FAQs
When will the payment increases be applied?
The increases will be implemented on Thursday, March 20, with subsequent updates occurring quarterly.
Will everyone on Centrelink receive the same increase?
No, the increase varies by payment type, with adjustments made for singles, couples, and those with children or partial workability.
How often will these increases happen?
The Centrelink payments are adjusted four times a year, typically in line with inflation and cost-of-living increases.
What does “indexation” mean?
Indexation refers to the automatic adjustments made to certain payments based on inflation and other economic factors to ensure they keep up with the cost of living.