Millions of Australians will see a rise in their welfare payments this September, as part of regular adjustments aimed at keeping up with inflation. With over five million people set to benefit, the increase will affect a range of payments, from the age pension to JobSeeker, helping to ease the financial burden on some of the nation’s most vulnerable groups.
As inflation continues to impact everyday expenses, the government’s decision to adjust social security payments comes as part of its ongoing commitment to ensure that Australians receiving Centrelink benefits can keep up with rising living costs. However, while many will receive a boost, questions remain about whether these increases will be enough to help individuals and families struggling with ongoing financial difficulties.
Adjustments Across Welfare Payments
According to the Australian government, the key social security payments that will rise this September include the age pension, carer payments, disability support, and rent assistance. For single pensioners, the fortnightly payment will increase by $29.70, bringing the total to $1,178.70. Meanwhile, couples will see an increase of $22.40, totalling $888.50 per fortnight.
Single parents will benefit from a rise of $16.20, which brings their payments to $1,039.70, while partnered parents will receive a slightly smaller increase of $11.40, totalling $734.40. Rent assistance will also rise, with single individuals receiving an additional $3.40 (to $215.40) and couples seeing a $3.20 increase, reaching $203. For single parents with three or more children, the rental boost will be $4.48, raising their assistance to $286.02.
Youth Allowance and JobSeeker payments will also see a rise. Single people over the age of 22 will receive an additional $12.50, bringing the JobSeeker payment to $793.60 per fortnight.
These increases are in line with the regular twice-yearly adjustments, designed to help maintain purchasing power in the face of rising inflation.
The Importance of Indexation and Its Limitations
The payments are indexed, meaning they are automatically adjusted to match changes in inflation, the consumer price index, or wages. This ensures that the value of these payments remains in line with the cost of living. The indexation system aims to protect the most vulnerable Australians from the erosion of their purchasing power.
However, despite the increases, some anti-poverty advocates argue that the rises are insufficient. Jeremy Poxon, a welfare advocate, criticised the government for failing to significantly lift payments in line with the Henderson Poverty Line, which currently stands at $660.72 per week for a single person.Â
Poxon noted that while indexation might help a little, it does not go far enough to lift people out of poverty. Critics argue that while the government’s decision to increase payments is welcomed, the rise remains small and is unlikely to provide meaningful relief for those living on the financial edge.
