Millions of Australians relying on Centrelink payments are just weeks away from receiving an increase, scheduled for March 20.
This annual indexation event is one of four key dates throughout the year when Centrelink payments adjust to keep up with inflation.
Services Australia will soon announce the specific increase for March, which will apply to several types of welfare payments. The last update to these payments took place on January 1.
Which Centrelink Payments Will Be Affected?
The upcoming indexation is expected to impact various Centrelink payments, similar to what occurred last year. These include:
- Age Pension
- Disability Support Pension and Carer Payment
- Pension Supplement and Energy Supplement
- Commonwealth Rent Assistance
- JobSeeker
- Parenting Payment Single
- ABSTUDY
The Purpose of Regular Indexation
The Australian government emphasizes that these payment increases are aimed at providing timely Cost of living relief to those facing financial difficulties, including retirees and vulnerable individuals.
Social Services Minister Amanda Rishworth highlighted the critical role of regular indexation in easing the pressures of inflation and the cost of living.
“Our top priority is addressing inflation and cost of living pressures,” said Rishworth. “These challenges underscore the importance of adjusting payments regularly to ensure recipients have sufficient funds for their daily expenses.”
Commitment to Supporting Vulnerable Citizens
Minister Rishworth also underscored that the regular updates are especially crucial for pension recipients, many of whom have spent their lives contributing to society or caring for loved ones.
She emphasized that this indexation is in addition to the government’s boost to working-age and student payments.
“Pensioners are among the most vulnerable members of our community,” she added. “These changes are vital for ensuring that they have the financial support they need.”
When Will the Payments Increase?
The exact payment increases will be revealed in the first few days of March. As in previous years, most payments will be adjusted according to the change in the consumer price index (CPI) between June and December of the previous year.
The new rates will be applied to accounts on March 20, marking the last indexation round before the upcoming federal election.
Political Implications of the Indexation
The March increase will also be the final one before the federal election. In January, Minister Rishworth warned that should the Coalition win the election, there may be a risk to the indexation increases.
“Peter Dutton’s Liberal and National Coalition have criticized these increases as reckless spending and have indicated they would consider them part of their proposed $315 billion cuts,” Rishworth stated.
The upcoming Centrelink payment indexation is set to provide much-needed relief for millions of Australians who depend on these benefits. The increase, scheduled for March 20, will affect various payments, ensuring that they keep pace with inflation. However, with the federal election on the horizon, the future of these regular increases may be at risk depending on the outcome.
FAQs
When will the new Centrelink payment rates be announced?
The new payment rates are expected to be revealed in the first few days of March, with the changes applied to accounts on March 20.
What is the basis for the payment increase?
The payment increases are based on the consumer price index (CPI) change from June to December of the previous year.
Will all Centrelink payments increase in March?
Yes, several payments will be adjusted, including Age Pension, JobSeeker, Disability Support Pension, and more.