Starting July 1, millions of Centrelink recipients across Australia will experience an increase in their payments, part of the regular indexation process aimed at ensuring payments keep up with inflation and the rising cost of living.
The 2.4% increase will benefit around 2.4 million people and affect a wide range of payments, including family assistance, pensions, and allowances.
According to Finance Yahoo, these adjustments are designed to alleviate financial pressures for many Australians.
The indexation will impact various payment rates, income thresholds, and asset limits for a number of Centrelink programs, which are crucial for recipients managing everyday living costs.
What Will the Increase Cover?
The 2.4% increase applies to various payments, including the Family Tax Benefit (Parts A and B), the Multiple Birth Allowance, and the Newborn Supplement.
Additionally, income and asset thresholds for those receiving the Age Pension, Disability Support Pension, and Carer Payment will also see adjustments.
Families receiving the Family Tax Benefit Part A will see an increase of $5.32 per fortnight, bringing their maximum payment to $227.36.
Families with children aged 13 or older will see an increase of $7, bringing their payments to $295.82 per fortnight.
For those receiving Family Tax Benefit Part B, the maximum payment will rise by $4.48, to $193.34 per fortnight. Families with children over 5 years old will see their rate increase to $134.96.
Other Changes for Families and New Parents
New parents will see an increase in the Newborn Supplement, which will rise to $2,052.05, providing an extra $48 over 13 weeks. Families with multiple births will also benefit, with the Multiple Birth Allowance rising to $196.56 for triplets and $261.94 for quadruplets or more.
While payment rates for the Age Pension, JobSeeker, and Youth Allowance are unaffected, there will be changes to income and asset thresholds for these Centrelink payments.
For example, Age Pensioners will now be able to earn up to $218 per fortnight without losing their full pension, and the maximum amount that can be earned before the pension cuts out will rise to $2,516.
For couples, the income limits will be $380 per fortnight and $3,844.40 for the disqualifying income limit.
Single homeowners will be able to have assets of $321,500 and continue to receive the full pension, while couples will have a limit of $481,500. The cut-off threshold to receive a part pension will increase to $704,500 for single homeowners and $1,059,000 for couples who own homes.
Paid Parental Leave Income Limits Also Increase
The Paid Parental Leave income limits will also rise. The individual income limit will increase to $180,007 per annum, while the family income limit will rise to $373,094 per annum.
These changes are part of the government’s efforts to alleviate cost-of-living pressures for Australian families. Social Services Minister Tanya Plibersek emphasized that addressing these pressures remains the government’s top priority.
She said,
From 1 July, millions of recipients of social security payments will see more money in their bank accounts.
Payments like the Family Tax Benefit help cover the costs of raising children for many Australian families, and indexation is a crucial way to help families when the cost of living rises -Plibersek continued.
