Centrelink payments to rise as indexation takes effect for millions of Australians

Millions of Australians who receive Centrelink payments will get a fortnightly boost to their benefits when routine indexation takes effect this Saturday, the federal government said.

Age and disability support pensions and carer payments will rise by $29.70 per fortnight for single recipients and $44.80 for couples. Youth Allowance students will receive an additional $16.20, taking the maximum fortnightly rate to $1,027.70, while Indigenous students and apprentices will see a $12.50 rise to $793.60. Single job seekers with no dependents will receive the same $12.50 increase. Single parents will gain $16.20, bringing their maximum fortnightly rate to $1,039.70, and partnered parents’ payments will increase to $734.30. Rent assistance rates will also lift, to $215.40 for singles and $203.00 for couples.

The government said the increases are intended to help recipients cover essentials including rent, electricity, groceries and health costs amid ongoing pressure from the cost-of-living crisis. The changes are applied automatically; recipients can check their next payment by logging into their Centrelink online account or via the Express Plus Centrelink mobile app.

Social Services Minister Tanya Plibersek said the rises form part of a broader package of measures. "Social security recipients are also benefitting from tax cuts, cheaper medicines, energy bill relief, cuts to student debt and a whole range of other cost of living measures we've delivered since coming into government," she said. "The social security system must be grounded in fairness, which is why we adjust supports as the economy changes. 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."

Indexation of social security payments in Australia is carried out twice yearly, in September and March, and is designed to help payments keep pace with movements in wages and prices. The Department of Social Services and Services Australia determine adjustments based on prevailing economic indicators and apply them across a range of payment categories.

The automatic nature of the adjustment means no application is required from recipients. Authorities advise people who rely on Centrelink payments to review their online statements for updated amounts and to contact Services Australia if they believe their payments have not been adjusted correctly.

Advocates and some economists have said indexation provides an important, predictable mechanism to protect real incomes for people on fixed or low incomes, although debates continue over the adequacy of payment rates relative to rising living costs. The government points to the twice-yearly indexation and complementary policy measures as part of its response to affordability pressures facing households.