Millions of Australians receiving Centrelink payments will see a slight increase in their benefits this month as part of the country’s routine social security indexation. The adjustment, which occurs twice a year in March and September, ensures that payments keep pace with inflation.
The latest increase will take effect on March 20, 2025, providing modest financial relief for pensioners and low-income Australians as cost-of-living pressures continue to mount.
Why Are Payments Increasing?
Australia’s social security system undergoes biannual indexation, a process that adjusts payments based on changes in the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI). This policy aims to maintain the purchasing power of government support programs as inflation fluctuates.
The latest adjustment comes at a critical time, just months before the next federal election, where economic challenges—including the rising costs of food, housing, and utilities—are expected to be key issues for voters.
How Much Will Pensioners Receive?
The Aged Pension, Australia’s largest welfare payment, will see the most significant increase. Single pensioners on the maximum rate will receive an additional $4.60 per fortnight, bringing their total fortnightly payment to $1,149. For couples, the increase will be $7 per fortnight, bringing their combined payments to $866.10 each.
According to Social Services Minister Amanda Rishworth, the adjustments will help ease financial burdens for older Australians.
“Indexation is a critical part of our social security safety net,” Rishworth stated. “For pensioners and other payment recipients receiving this financial boost, this will help ease some pressure.”
What About Jobseeker Recipients?
The JobSeeker Payment, which supports approximately 850,000 Australians who are unemployed or underemployed, will also increase—though by a much smaller margin. Single recipients will receive an extra $3.10 per fortnight, while couples will see a $2.80 boost.
These increases equate to $72.80 and $80.60 per year, respectively—less than half the average weekly grocery bill in Australia, according to market research firm Canstar Blue.
While the Albanese government has significantly raised JobSeeker rates over the past three years, many advocacy groups argue the payments remain far below the poverty line.
How Have Payments Changed Under the Albanese Government?
Since Prime Minister Anthony Albanese took office in May 2022, social security benefits have seen notable increases. Depending on eligibility, JobSeeker recipients are now receiving between $3,374 and $5,038 more per year than they did under the previous government.
Single parents, a majority of whom are women, have experienced the most significant gains, with annual increases of at least $7,579. This boost follows reforms that extended the Single Parenting Payment until the youngest child turns 14 years old, rather than eight, as was previously the case.
How Much Has the Government Invested in Social Security?
The Albanese government has committed $11.5 billion over the past two federal budgets to strengthen Australia’s welfare system. However, with inflation still above 3%, cost-of-living concerns remain at the forefront of public discourse.
Advocacy groups, including ACOSS (Australian Council of Social Service), argue that the increases are far too modest to lift vulnerable Australians out of financial hardship.
Many are calling for structural reforms to ensure welfare payments remain sufficient to cover essential expenses like rent, food, and healthcare.
