Starting on September 20, millions of Australians receiving Centrelink payments will see an increase in their financial support, as the latest round of indexation takes effect. This adjustment aims to help recipients manage rising living costs and meet daily expenses. The changes will impact a broad range of Australians, including age pensioners, JobSeeker recipients, students receiving ABSTUDY, and others who rely on government support.
According to Yahoo Finance, the increase is part of the biannual adjustment designed to ensure that social security payments remain in line with inflation. This article outlines the key changes and what beneficiaries can expect moving forward.
Payment Increases for Over 5 Million Australians
The upcoming Centrelink payment increases will benefit more than 5 million people. This includes over 2.6 million age pensioners, JobSeeker recipients, students receiving ABSTUDY, and individuals receiving Carer Payments and Parenting Payments. Social Services Minister Tanya Plibersek emphasized that the social security system should adapt to economic changes:
“The social security system must be grounded in fairness, which is why we adjust supports as the economy changes, she said.”
“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.”
For age pensioners, the maximum fortnightly payment will increase by $29.70, bringing it to $1,178.70. Partnered pensions will also see a rise of $22.40, reaching $888.50 each per fortnight. JobSeeker recipients will see an increase of $12.50, bringing their payments to $793.60 per fortnight. These increases are expected to provide much-needed financial relief to those struggling with day-to-day expenses.
Income and Asset Thresholds for Pensioners
In addition to the payment increases, Centrelink will also adjust the income and asset thresholds for those receiving the Age Pension. These changes will allow more Australians to qualify for a pension, as the thresholds for income and assets will rise across the board.
For example, the income threshold for singles will increase by $59.40 per fortnight, bringing it to $2,575.40. For couples, this threshold will rise by $89.60, reaching $3,934. The asset threshold for single homeowners will increase by $10,000, reaching $714,500. For couples, the asset threshold will rise by $15,000, bringing it to $1,074,000 for homeowners. These changes ensure that more Australians are eligible for financial assistance, even if their assets have increased.
Deeming Rate Changes and Impact on Pensioners
While the payment increases provide relief, pensioners will also see a change in deeming rates. These rates, which are applied to the income from financial investments, will gradually return to pre-pandemic levels. Since 2020, deeming rates have been frozen at 0.25% and 2.25% as an emergency pandemic measure. However, from September 20, they will rise to 0.75% and 2.75%, respectively.
Patricia Sparrow, CEO of COTA Australia, commented on the changes:
“The idea that all older Australians are wealthy is a myth. In reality, over one in four live in poverty. For those struggling with skyrocketing costs, an extra $29.70 a fortnight will bring real relief.”
The Centrelink payment increases, however, are expected to offset the impact of the increased deeming rates for many pensioners.
“Any decrease in fixed incomes is difficult for people to manage. However, staging the changes and coupling the introduction of the change with one of the largest pension increases in the past 60 years should offset the impact for many pensioners,” she added.
Seniors Health Card Eligibility
In addition to the payment increases, there are changes to eligibility for the Commonwealth Seniors Health Card. From September 20, singles with taxable incomes below $101,105 and couples with incomes below $161,768 will be eligible for the card, which provides additional healthcare benefits for seniors.
