More than 5.3 million Australians on social security will receive increased payments as indexation boosts pension, JobSeeker and parenting allowances from Thursday.
Under the latest routine indexation update, a range of payment rates, eligibility thresholds and financial limits across the Australian welfare system will see an increase. The periodic adjustments are designed to help lower-income households handle ongoing cost-of-living pressures.
Social security payments in Australia, administered through Centrelink under Services Australia, are indexed twice each year. The benchmark calculations reflect movements in consumer price indexes to maintain the real purchasing power of government benefits.
Pensioners will receive the largest dollar increase under the new rates. Maximum payments for single Australians will rise by $36.80 to $1,237.70 a fortnight, while the combined maximum rate for couples will increase by $55.60 to $1,866 a fortnight.
Pension and JobSeeker rate increases
The maximum rate of JobSeeker Payment for a single recipient without children will rise by $16.20 to $833.70 per fortnight. According to government details, JobSeeker recipients now receive more than $4,700 extra per year compared to 2022 rates.
JobSeeker serves as Australia's primary income support payment for working-age adults looking for employment or managing temporary incapacity to work.
Parenting Payment recipients will also benefit from the update. Maximum rates will increase by $20.90 to $1,087.20 per fortnight for single parents, and by $14.80 to $763 each per fortnight for partnered recipients.
Nearly one million renters are also set to receive higher amounts through Commonwealth Rent Assistance. Maximum rent assistance rates have expanded by approximately 53 per cent since 2022 to assist tenants facing private rental market costs.
Cost of living support and new deeming rates
Minister for Social Services Tanya Plibersek noted that overall pension rates are now 25 per cent higher than when the Labor administration took office under Prime Minister Anthony Albanese in 2022.
"From September 20, an extra $4billion of cost-of-living relief will begin to flow to over 5.3 million Australians," Plibersek said.
"Whether it's paying the rent, putting food on the table or covering everyday bills, this extra support will help Australians on income support make ends meet," Plibersek added. "We'll continue to make sure the system is there to support those who need it most, ensuring that everyone can make ends meet and no one gets left behind."
Alongside the indexation changes, the Albanese government has accepted recommendations from the Australian Government Actuary to adjust social security deeming rates. Deeming rates represent the assumed rate of return on financial investments used by Centrelink to assess income tests for welfare eligibility.
Effective from 20 September, the lower deeming rate will be updated to 1.75 per cent for financial assets up to $66,800 for single recipients. For couples, the combined threshold will be set at $110,600, with a higher deeming rate of 3.75 per cent applied to any financial assets above that threshold.
The Department of Social Services has made a full schedule of updated payment rates and financial thresholds available on its official website.
