Starting July 1, 2025, millions of Australians receiving social services payments will see an increase in their allowances. According to Services Australia, payments for families, pensioners, and others on government assistance will be indexed by 2.4%.
This adjustment is a response to rising costs of living, providing much-needed financial support to those relying on social welfare.
The indexation will primarily benefit families with children, parents on Paid Parental Leave, and pensioners. While the change will not impact all payments, it will increase the asset limits and income thresholds for various government services.
Key Family and Pension Payments Set to Increase
The July indexation will offer families with children an additional boost, with changes to the Family Tax Benefit A and B. For instance, families with a child under the age of 13 will receive an extra $5 per fortnight. Families with children aged 13 and above will see a more substantial increase, with $295.82 added to their fortnightly payments.
New parents will also benefit from an additional $48 over a 13-week period, courtesy of the Newborn Supplement. Families with triplets can expect an extra $120 for the year, according to Services Australia.
Additionally, pensioners, including those on the Age Pension, Disability Support Pension, and Carer Payment, will receive the increase. The Paid Parental Leave income limits will also rise, with the individual cap now set at $180,007, and the family cap increasing to $373,094.
Asset and Income Thresholds for Other Payments Adjusted
In addition to boosting direct payments, the July indexation will see a rise in asset limits for JobSeeker Payment, Youth Allowance, Austudy, and other similar services. For example, the asset limits for recipients of JobSeeker will increase by 2.4%, allowing those who may have been ineligible due to asset holdings to now qualify for support.
It’s important to note that while youth and student payments are not affected by this indexation, thresholds for these payments will rise in January. The indexation of asset limits and income thresholds is part of the government’s ongoing strategy to ensure that the welfare system remains responsive to the financial pressures faced by Australians.
The changes outlined are designed to mitigate the financial challenges that many households face, particularly in light of the rising cost of living. These adjustments to the social services system are expected to ease the burden for many Australians relying on government support.
