Social security bump as latest indexing kicks in

Centrelink payments will get a bump this month, with millions of Australians set to be a little better off per year.

Millions of Australians receiving Centrelink payments will get a slight bump after the latest round of social security indexation kicks in this month.

Social security payments are indexed twice a year – once in March and once in September.

The latest indexation, which will hit bank accounts on March 20, will be the last before voters head to the polls for an election dominated by cost of living pressure.

Social Services Minister Amanda Rishworth said on Sunday the Albanese government has “spent the past three years strengthening our social security system, so that it helps Australians at whatever age or stage they’re at in life”.

Social Services Minister Amanda Rishworth says the Albanese government has ‘spent the past three years strengthening our social security system’. Picture: NewsWire / Martin Ollman

“Indexation is a critical part of our social security safety net,” she said in a statement.

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

Pensioners will receive the biggest increase to their payments, with those on the maximum single rate Aged Pension getting an extra $4.60 a fortnight and couples getting an extra $7.

That will bring fortnightly payments for the 2.64 million recipients to $1149 and $866.10 respectively.

JobSeeker is the second-largest payment behind the Aged Pension, with 850,000 Australians depending on the allowance as they search for work.

Millions of Australians receiving Centrelink payments will get a slight bump after the latest round of social security indexation kicks in this month. Picture: NewsWire / Mark Brake

Single recipient will get a $3.10 boost for single recipients, while couples will get a $2.80 increase.

Annually, that works out at $72.80 and $80.60 respectively — less than half the national average weekly grocery bill, according to market researchers.

But JobSeeker recipients will still be better off, at least on paper, than they were three years.

Depending on eligibility, recipients will receive between $3374 and $5038 more than before Labor took office.

Single parents claiming payments, which are mostly women, will have seen the biggest boost since the last election, getting at least $7579 more per year.

The Albanese government has committed $11.5bn to bolstering social security over the past two federal budgets.

Originally published as Social security bump as latest indexing kicks in