More than five million Australians are set to receive a financial boost to their Centrelink payments this week as part of the latest round of indexation increases, aimed at easing the pressure of rising living costs. The adjustment, confirmed by Sky News Australia, will come into effect from Thursday and will benefit a wide spectrum of welfare recipients, including age pensioners, carers, renters, single parents, and jobseekers.
These increases are the result of automatic indexation, a policy designed to keep welfare payments aligned with inflation and broader economic conditions. While the individual rises may appear modest, they reflect the government’s ongoing effort to protect the value of support payments and help vulnerable Australians navigate cost-of-living challenges.
Who Will Receive More—and How Much?
Under the new indexation schedule:
- Single age pensioners will receive an additional $4.60 per fortnight, increasing their total payment to $1,149.
- Pensioner couples will receive $3.50 more per fortnight.
- Single parents receiving the parenting payment will gain an extra $4, bringing their fortnightly total to $1,030.30 including various supplements.
- JobSeeker recipients will see increases ranging from $2.80 to $3.30, depending on their personal circumstances and whether they have dependents or partners.
- Those assessed as having a partial capacity to work will receive a $3.30 increase.
Households on Commonwealth Rent Assistance are also set to benefit, with some eligible for up to $87.92 more per fortnight, depending on their current rate and eligibility. Approximately one million households are expected to see a rise in rent assistance due to the changes.
Annual Impact Could Reach Thousands for Many
While these fortnightly increases may appear modest at first glance, their annual impact is considerable. Thanks to a combination of three years of indexation and policy reform, the government estimates that:
- Single parents will be $7,579 better off annually.
- JobSeekers will gain between $3,374 and $5,038 each year, depending on their eligibility.
These figures include both the latest increases and cumulative changes made under the current government, illustrating how long-term policy planning can produce meaningful income support for Australians doing it tough.
Government and Opposition Response
Social Services Minister Amanda Rishworth hailed the increases as part of Labor’s commitment to building a fair and responsive social safety net. She stressed the importance of indexation in maintaining support levels:
“We’ve spent the past three years strengthening our social security system, so that it helps Australians at whatever age or stage they’re at in life… Indexation is a critical part of our social security safety net. For pensioners and other payment recipients receiving this financial boost, this will help ease some pressure.”
Rishworth also claimed the payments could be at risk under a Coalition-led government, alleging that Peter Dutton’s party would look to cut welfare spending, potentially affecting regular indexation. The Coalition, however, has since stated it does not plan to abolish indexation.
What Comes Next for Centrelink Payments?
With the latest indexation changes now active, affected Australians should begin seeing the increases from this week, depending on their payment schedule. The government has confirmed that no action is required from recipients—payments will be automatically adjusted.
The timing of this boost is significant as households continue to battle high costs across energy, rent, food, and healthcare, and it’s likely that future reviews will focus on how well indexed payments keep up with actual living expenses.
