Centrelink payment increases: See if you are eligible

Millions of Australians are set to get an increase to their social security payments this month. See if you are among them.

A raft of changes will hit Centrelink recipients in March as social security payments increase and legislation around carers comes into effect.

INDEXATION INCREASES

More than five million Centrelink recipients will have their payments increased from March 20 as quarterly indexation is applied.

Increases across the board are about 0.4 per cent, in line with the consumer price index rise in the six months to January.

The rate increases apply to those on payments including the age pension, JobSeeker and Commonwealth Rent Assistance.

The pension will be lifted by $4.60 for a single person to a maximum of $1149 each fortnight. This rate applies to those on the age pension, disability support pension and carer payment.

Due to higher inflation, when this rate was last increased in September 2024 it was by $28.10.

Increases to payments across the board are about 0.4 per cent, with the fortnightly pension for a single person rising by $4.60. Picture: NewsWire / David Geraghty

Over three years of Labor government, indexation has driven up the fortnightly pension for a single person by $161.40.

Minister for Social Services Amanda Rishworth said the payment increases would assist Australians with cost of living pressures.

“Indexation is a critical part of our social security safety net,” the minister said.

“For pensioners and other payment recipients receiving this financial boost, this will help ease some pressure.”

The rate for JobSeeker, a payment for Australians out of work, will increase by $3.10 each fortnight to $781.10.

Rates for Youth Allowance, a payment for Australians studying under the age of 24 or looking for work under the age of 21, have only been increased for those who are the single carer of a child. The rise in the payment is $4 each fortnight, to a maximum of $1011.50.

Minister for Social Services Amanda Rishworth said indexation would “help ease some pressure” on pensioners and others receiving social security payments. Picture: NewsWire / Martin Ollman

Indexation has also driven increases to income and asset limits, with a single person on the age pension receiving no funds if they earn more than $2510 in a fortnight – an increase of $9.20.

The asset limit increase means a non-homeowning couple will now be ineligible to receive any pension if their combined assets are over about $1.3 million – an increase of $2000 to the limit.

CHANGES FOR CARERS

From March 20, those receiving a carer payment will also have more flexibility to work and study.

The carer payment is for Australians who are providing constant care to someone who either requires long-term assistance or is at the end of their life. Under current rules, carers lose access to this payment if they work, study or volunteer more than 25 hours in a single week.

The changes will group these to 100 hours over a four-week period and allow for more flexibility in balancing care, employment or study.

When the changes were first announced in May 2024, Ms Rishworth said they would help the many carers who “frequently find care requirements can be fluctuating or episodic and that then can make regular work or study a challenge”.

The government estimated the cost of carer payment changes at $18.6 million over five years.

WHAT DOES THIS MEAN FOR PAYMENT RECIPIENTS?

Australian Council of Social Services (ACOSS) chief executive Cassandra Goldie said “indexation of 22c a day does nothing to address the gross inadequacy of JobSeeker and related payments”.

“If the Federal Government is serious about addressing the cost of living crisis, it must substantially lift income support payments to at least $82 a day, in line with the Age Pension,” Dr Goldie said.

On March 20, changes for those receiving the carer payment will also come into effect. Picture: NewsWire / Mark Brake

Recent research from the Grattan Institute found two thirds of renting retirees are living in poverty, with some going without food between pension payments.

Dr Goldie said ACOSS has “heard from people who haven’t eaten red meat in more than two years, who use rags instead of sanitary products, who have sold their cars because they can’t afford to maintain them despite living in a rural area.”

“The way to end poverty is simple: raise the rate. Anything less is a choice to keep people hungry, sick and struggling.”

Welfare Rights Centre chief executive Katherine Boyle said a rate that meets the needs of Australians “requires more than just indexation”.

“While any increase in income support payments is welcome, the current rates remain inadequate, leaving many Australians in poverty,” Ms Boyle said.

“For instance, [the] Jobseeker payment is 40 per cent of the minimum wage. We need a secure rate for all income payments to ensure Australians can meet their basic needs.”

Originally published as Centrelink payment increases: See if you are eligible