Rachel Fieldhouse
Money & Banking

Record boost to Centrelink payments coming for nearly one million Aussies

Hundreds of thousands of Australians receiving welfare are due to receive the biggest increase to their payments in two decades.

The increase will see payments for young people, including parents, students and those on disability, increase from January 1, 2023.

From next year, the base rate for singles on Youth Allowance will increase by at least $19.10 - with a maximum $32.40 extra a fortnight - taking the maximum rate up to $569.80.

Single Australians with dependents can expect a boost of $41.40, bringing payments up to $729.60, while couples will receive an additional $35.20 a fortnight.

For those under 21 without kids who receive Disability Support Pension, including Youth Disability Supplement, the payment increase is expected to range between $27.40 and $40.70 a fortnight.

Recipients of Austudy, ABSTUDY, Mobility Allowance, Double Orphan Pension, Carer Allowance and Pharmaceutical Allowance will also be included in the increases, which are part of a routine indexation that happens every January to keep up with inflation.

It comes after the Reserve Bank of Australia forecasted that inflation would peak at eight percent by the end of 2022.

In comparison, payments for young people and students have been indexed at 6.1 percent. 

Social services minister Amanda Rishworth said the increase would help ease the pressure coming from the current cost-of-living crisis.

“With the cost of living increasing, we need to ensure students and young people can cover basic costs while focusing on their studies and career aspirations,” she said.

While young people are the subject of these payment increases, those who receive Jobseeker or the Aged Pension won’t be left out, with indexation increases announced for all welfare payments were announced by the federal government in September.

These payments are also indexed at other times of the year, with the Aged Pension increasing in March and September.

Image: Getty Images

Tags:
Money & Banking, Centrelink, Youth, Welfare, Cost-of-Living