In a move aimed at supporting millions of Australians amidst rising living costs, the government has announced substantial increases to various Centrelink payments, effective from March 20, 2025.
This biannual indexation ensures that social security payments keep pace with inflation, providing much-needed relief to recipients.
Overview of Payment Increases
The upcoming adjustments will benefit a wide range of Centrelink recipients, including those on the Age Pension, JobSeeker, Disability Support Pension, Carer Payment, and more. Below is a detailed breakdown of the increases:
| Payment Type | Previous Fortnightly Rate | Increase per Fortnight | New Fortnightly Rate | Annual Increase |
|---|---|---|---|---|
| Age Pension | ||||
| Single | $1,144.40 | $4.60 | $1,149.00 | $119.60 |
| Couple (combined) | $1,723.40 | $7.00 | $1,732.20 | $182.00 |
| JobSeeker | ||||
| Single | $778.00 | $26.00 | $804.00 | $676.00 |
| Single (with dependents) | $833.20 | $27.80 | $861.00 | $722.80 |
| Partnered (each) | $712.30 | $22.70 | $735.00 | $590.20 |
| Disability Support Pension | ||||
| Single | $1,144.40 | $4.60 | $1,149.00 | $119.60 |
| Couple (combined) | $1,723.40 | $7.00 | $1,732.20 | $182.00 |
| Carer Payment | ||||
| Single | $1,144.40 | $4.60 | $1,149.00 | $119.60 |
| Couple (combined) | $1,723.40 | $7.00 | $1,732.20 | $182.00 |
| Commonwealth Rent Assistance | ||||
| Single (no children) | $145.80 | $5.80 | $151.60 | $150.80 |
| Single (with children) | $170.20 | $6.80 | $177.00 | $176.80 |
| Couple (no children) | $137.40 | $5.50 | $142.90 | $143.00 |
| Couple (with children) | $161.80 | $6.50 | $168.30 | $169.00 |
Key Payment Adjustments
1. Age Pension
Approximately 2.64 million pensioners will benefit from this increase. Single pensioners will see their fortnightly payments rise by $4.60, bringing the total to $1,149.00.
For couples, the combined fortnightly payment will increase by $7.00, totaling $1,732.20.
2. JobSeeker
More than 850,000 Australians on JobSeeker will receive a boost. Single recipients without children will get an additional $26.00 per fortnight, raising their payment to $804.00.
Single recipients with dependents will see a $27.80 increase, totaling $861.00 per fortnight. Partnered individuals will receive an extra $22.70 each, bringing their payments to $735.00 per fortnight.
3. Disability Support Pension and Carer Payment
Recipients of the Disability Support Pension and Carer Payment will experience similar increases as the Age Pension, with singles receiving an additional $4.60 per fortnight and couples receiving $7.00 combined.
4. Commonwealth Rent Assistance
Rent Assistance rates will also rise, with single recipients without children receiving an extra $5.80 per fortnight, bringing their total to $151.60. Singles with children will see a $6.80 increase, totaling $177.00.
Couples without children will get an additional $5.50, reaching $142.90, while those with children will receive a $6.50 boost, bringing their payment to $168.30 per fortnight.
Additional Changes Effective March 2025
Beyond the payment increases, several policy adjustments will take effect to further support recipients:
1. JobSeeker Compliance Measures
Starting March 20, 2025, job seekers newly registered with Workforce Australia or Disability Employment Services will not face compliance action for their first instance of not meeting a requirement.
Additionally, those who have been working 30 hours a fortnight for two months will be exempt from penalties if they miss an appointment with their employment service provider.
2. Carer Payment Work Hour Flexibility
Carers will have increased flexibility, allowing them to work up to 100 hours over a four-week period without affecting their payments. This replaces the previous limit of 25 hours per week.
Government’s Commitment to Supporting Australians
Social Services Minister Amanda Rishworth emphasized the importance of these adjustments, stating that they are designed to help Australians meet cost-of-living pressures.
She highlighted that since the election of the Albanese Government, the maximum rates of Commonwealth Rent Assistance have increased by approximately 45%.
The March 2025 Centrelink payment increases are a crucial step in addressing the rising cost of living for millions of Australians.
With adjustments for pensioners, job seekers, carers, and students, the government aims to provide financial relief and ensure that social security payments remain in line with inflation.
Additionally, the new compliance and work flexibility rules offer a fairer system for JobSeeker and Carer Payment recipients.
FAQs
When will the new payment rates take effect?
The new Centrelink payment rates will take effect from March 20, 2025. Beneficiaries will receive their first adjusted payments from this date, depending on their individual payment schedule.
Who is eligible for the increased Centrelink payments?
The increased payments apply to recipients of the Age Pension, JobSeeker, Disability Support Pension, Carer Payment, Parenting Payment, ABSTUDY, and Rent Assistance. Eligibility criteria remain the same, meaning recipients must meet the existing income and asset thresholds.
How can Centrelink recipients ensure they receive the updated payments?
Recipients do not need to take any action to receive the increased payments. The new rates will be automatically applied to all eligible recipients by Services Australia. However, those who suspect any issues with their payments should check their myGov accounts or contact Centrelink for verification.