Huge Centrelink boost confirmed as MPs vote for top-up to payments

More than a million Aussies on welfare will be given a top-up to their payments after Labor secured a big win in parliament.

A welfare increase for more than one million Australians has been locked in after the parliament rubber-stamped a $40 per fortnight top-up.

The legislation passed after the Coalition and the Greens resolved to not stand in the way of the top-up despite attempts to amend it falling short.

Passing the increase, which will also apply to Commonwealth rent assistance, youth allowance, disability support pension and the parent payment, was a must in order for the payments to be in place by the September 20 deadline.

The payment increase will come into effect from September 20. Picture: NCA NewsWire / David Geraghty

The boost will top up the JobSeeker payment by $56 a fortnight – including an extra $16 due to indexation – when the $40 increase comes into effect on September 20.

It will take the fortnightly payment for a single person with no children to about $749.

But the final indexation rate for the single parenting payment and the pension have yet to be finalised. Youth allowance and Austudy will not be lifted in line with inflation until January 1.

The increase is set to cost the budget bottom line $4.9bn.

Social Services Minister Amanda Rishworth said the increase would ensure “no one is left behind or held back”.

“More broadly, it is important to remember these income support changes work alongside other cost of living relief in the budget, including help with power bills, record investment in Medicare bulk-billing and cheaper medicines,” she said.

“Millions of Australians will directly benefit from these measures – including Australians on income support.”

Social Services Minister Amanda Rishworth said millions of Aussies would benefit from the measure. Picture: NCA NewsWire / Martin Ollman

The Greens pushed to amend the Bill to lift the JobSeeker rate to $88 a fortnight but were unsuccessful.

Senator Janet Rice said the result contradicted the minister’s claim.

“The increase works out to be around $4 a day, which is less than a cup of coffee and won’t help anyone pay their rent,” she said.

“Labor ignored an opportunity to make a meaningful difference in lifting Australians out of poverty and building a strong social safety net for everyone who needs it.”

Coalition senators’ attempt to scrap the increase in favour of doubling the income-free threshold for welfare recipients was knocked back.

The proposal would have allowed JobSeeker recipients to earn $300 a fortnight from a job while still receiving the full payment.

Opposition social services spokesman Michael Sukkar said the policy would have saved the budget bottom line $2.9bn over the forward estimates.