In a bid to address rising living costs and provide additional support to parents, several important Centrelink payment changes are coming into effect in June 2025. These adjustments reflect the government’s ongoing efforts to ensure that those who rely on government assistance can keep pace with economic challenges.
From an extension in Parental Leave Pay to increases in payments for pensioners and job seekers, these updates are a timely reminder of how crucial government support is to those facing financial hardships in Australia.
Parental Leave Pay Update: More Time, More Support
Starting on 1 July 2025, eligible parents will benefit from a significant increase in Parental Leave Pay. The scheme will extend from 20 weeks to 24 weeks, offering more time to bond with a newborn or newly adopted child.
This extension is coupled with a crucial addition—superannuation contributions will now be paid on behalf of the recipient during their leave, contributing 12% to their superannuation. These adjustments apply to children born or adopted after 1 July 2025.
The change is seen as a step towards greater financial security for parents on leave, with superannuation contributions during this period ensuring long-term retirement savings.
The move also reflects a broader policy shift aimed at supporting families more comprehensively through their first months after childbirth or adoption. As of now, parents can lodge claims up to three months prior to the expected birth or adoption date, allowing ample time to prepare financially.
Indexation of Centrelink Payments: Keeping Pace with Rising Costs
For those on Age Pension, JobSeeker, or Parenting Payments, the indexed payment increases that took effect on 20 March 2025 will continue through June 2025. These adjustments are designed to help recipients keep pace with inflation and the rising cost of living.
According to Services Australia, the increases are modest but important, including a $4.60 per week increase for single pensioners and $3.10 to $3.30 per fortnight for JobSeeker recipients, depending on their age.
While these increases are part of the ongoing indexation process, they are essential for ensuring that payments reflect current economic conditions.
Rent Assistance payments also saw an increase, though more modest, of up to $0.80 per fortnight. These adjustments may seem small on their own, but they provide much-needed financial relief for the many Australians who rely on these payments as their primary source of income.
Overall, these updates are vital for maintaining the purchasing power of Australia’s most vulnerable citizens, helping them manage the financial pressures of everyday living amid inflationary challenges.
