More than a million Australians will receive a cash boost as indexation adjusts to Centrelink payments to keep them in line with the cost of living.
Those receiving Youth Allowance, Austudy, ABSTUDY or Carer’s Allowance are some of the Australians who will see a slight increase in their fortnightly welfare payments from 1 January.
Youth subsidy payments increase between $17.30 and $24.30, up to a maximum rate of $670.30. The Australian reported.
Students living at home receiving youth allowance will receive an additional $17.30 every fortnight, changing their payment from $459.80 to $477.10.
Singles and couples receiving Youth Allowance who live away from home will receive an additional increase to $670.30 instead of $646.
But the parents’ income test threshold for youth allowance will rise to $65,189 a year.
For students receiving Austudy payments, you will get an increase of between $24.30 and $26.30 per fortnight.
Single beneficiaries with dependent children will get the biggest increase to $845.80 per fortnight, up from $815.20, which is an additional $30.60.
Some of the welfare payments that will be indexed for inflation on January 1 are Youth Allowance, Austudy, ABSTUDY and Carers Allowance payments.
Government indexes payments so Australians can cope with cost of living increases (file image)
Recipients with partners will get $26.30 more, bringing their payment to $725.80.
Austudy students who do not have dependent children will receive $670.30 per fortnight.
Australians receiving ABSTUDY will also benefit if they are undertaking a Masters or PhD, earning an extra $54 per fortnight up to $1,231.40.
This will be the largest expected increase in indexation.
Aboriginal secondary and tertiary students receiving ABSTUDY will see an increase of between $24.30 and $30.60, with the maximum rising to $845.80 for single recipients with dependent children.
More than 600,000 Australians receiving the Carer’s Allowance will only receive a $5.80 increase, bringing the new total to $159.30 a fortnight.
Students will benefit from indexing from January 1 with increases in Austudy and ABSTUDY for tertiary and secondary education students (file image)
The mobility allowance, the youth disability support pension and the double orphan’s pension for caregivers of a child or children who have lost both parents will also increase.
Indexation is carried out every year in January to adjust payments to inflation.
JobSeeker, Commonwealth rental assistance and age pensions are not included as they are indexed separately in March and September each year.
Social Services Minister Amanda Rishworth hopes the cash boost will help struggling Australians better cope with changes in the cost of living.
“We want to reduce disadvantage and keep Australia’s social safety net strong and sustainable by providing help to those most in need,” he said.
“Through indexation, payments are adjusted according to changes in the cost of living to ensure people have more money in their pockets.”
However, welfare experts say it is not enough and have noted that many Australians will remain below the poverty line.
“Every dollar helps when you live in poverty, but now we have students across the country who routinely cannot feed themselves,” Australian Council of Social Services chief executive Cassandra Goldie told Nine News.
“You’ve already had to spend money while trying to cover the essentials in life.”
January’s indexation is more good news for students, after Prime Minister Anthony Albanese promised to wipe out $3 billion of student debt for three million Australians.
The cost of the indexation increases will be approximately $63.8 million a year and is measured against the Consumer Price Index, which increased by 3.8 per cent in the 2023-24 financial year.