Starting on July 1, more than 2.4 million Centrelink recipients will see a boost in their payments, as part of the government’s regular indexation process. This move aims to help recipients keep up with the rising cost of living. The 2.4% increase, though modest, will provide much-needed financial relief for those relying on government assistance to meet their day-to-day needs.
The payment adjustments will affect various categories, including families with children, pensioners, and recipients of specific allowances. While the rise will vary across different programs, the overall aim is to alleviate the pressure of inflation and increase disposable income for vulnerable Australians. Social Services Minister Tanya Plibersek has emphasized that this adjustment is in line with the government’s focus on addressing the escalating cost-of-living crisis.
Key Changes to Family Tax Benefits and Allowances
Families receiving the Family Tax Benefit A and Family Tax Benefit B will see an increase in their fortnightly payments. For those receiving Family Tax Benefit A, the maximum payment will rise by $5.32, bringing it to $227.36 per fortnight. Families with children aged 13 or older will see a slightly higher increase, with their payments reaching $295.82 per fortnight, up by $7.
Families eligible for Family Tax Benefit B will also see an increase. The maximum payment will rise to $193.34, reflecting an increase of $4.48. Additionally, for families with children over the age of five, the payment will increase to $134.96. This is seen as a significant move for families who are grappling with high living costs.
The Multiple Birth Allowance, which provides additional support for families expecting multiples, will also experience an increase. Parents expecting triplets will now receive $196.56 per fortnight, while parents of quadruplets or more will see their payments rise to $261.94.
Centrelink’s Impact on Newborn Supplement: What the Upcoming Increase Means for New Parents
First-time parents will also benefit from the adjustments, with the Newborn Supplement seeing an increase of $48 over 13 weeks. This brings the total to $2,052.05. This extra support is aimed at helping parents meet the financial demands of raising a newborn, from medical expenses to essential baby supplies.
Minister Tanya Plibersek highlighted the importance of this indexation for new parents, particularly those who may be navigating the high costs associated with childcare and early childhood development. The rise in the Newborn Supplement is expected to ease some of the financial pressures that families face during the first few months after the birth of a child.
Age Pension and Disability Support Payment Thresholds Adjusted
Although the rate for the Age Pension, JobSeeker, Youth Allowance, and Disability Support Pension will remain unchanged, important adjustments have been made to income and asset thresholds. For example, Age Pensioners will now be able to earn up to $218 per fortnight, an increase of $6, while still remaining eligible for the full pension.
Additionally, the maximum income a pensioner can earn before their payment is reduced will increase to $2,516, offering greater flexibility for individuals who may be supplementing their pension with part-time work or other sources of income. These adjustments are designed to help pensioners cope with increasing living costs, without the fear of losing crucial financial support.
Centrelink cash boost coming from July 1 for millions of Aussies: ‘More money in bank accounts’ https://t.co/luJLieHr2u
— Yahoo Finance Australia (@YahooFinanceAU) June 11, 2025
Government’s Ongoing Commitment to Cost-of-Living Relief
The Social Services Minister has emphasized that the government’s priority remains addressing the financial strain faced by many Australians. With inflation continuing to impact the cost of living, particularly in areas such as housing, food, and healthcare, these regular payments adjustments are seen as a vital tool in helping families and individuals maintain their standard of living.
Minister Plibersek commented on the importance of such measures, noting that they represent a crucial step in the ongoing effort to assist vulnerable groups. “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,” she said.
