The new financial year is upon as and with it comes changes for more than two million Australians who will receive higher Centrelink payments, as the federal government adjusts rates and thresholds to keep pace with inflation.
Key Takeaways
- Around 2.4 million Australians will receive a small increase to their Centrelink payments from July 1.
- The standard indexation rate of 2.4% has been applied across key welfare payments including the Age Pension, JobSeeker, Parenting Payment and Youth Allowance.
- Income and asset thresholds have been raised, allowing more people to qualify for support or receive higher payments.
- Single homeowners can now hold up to $321,500 in assets and still receive the full Age Pension. For couples, the limit is $481,500.
- The income-free area has increased to $218 per fortnight for singles and $380 for couples before payments begin to taper.
- The cut-off point for receiving a part-pension has also been raised to $704,500 for single homeowners and over $1 million for couple homeowners.
- JobSeeker recipients can now earn up to $2,516 per fortnight (singles) or $3,844.40 (couples) before losing access to payments.
Key Background
Pensioners will benefit from higher income and asset thresholds. Singles can now earn up to $218 a fortnight without affecting their Age Pension, while couples can earn $380. Any income above these limits reduces the payment by 50 cents for every dollar earned.
The asset test has also been revised. The maximum value of assets a single homeowner can have before losing access to the full pension is now $321,500, up from $314,000. For couples, the threshold has moved to $481,500. For part-pension eligibility, the cut-off for couple homeowners is now $1,059,000.
The same indexation applies to other benefits. JobSeeker recipients face new income cut-offs, with singles losing eligibility at $2,516 a fortnight and couples at $3,844.40. Parenting Payment recipients and those receiving the Family Tax Benefit will also receive slightly higher payments.
The Paid Parental Leave scheme has also been extended. Parents can now access up to 24 weeks of government-funded leave, up from 20 weeks. The scheme will continue to expand, reaching 26 weeks in 2026, Anthony Albanese confirmed.
Crucial Quote
“Indexation is a crucial way to help families when cost of living rises,” Minister for Social Services Tanya Plibersek said in a statement. “Millions of recipients of social security will see more money in their bank accounts.”
Big Number
2.4 million – the number of Australians receiving at least one payment that increased from July 1.
