Centrelink Payments Increase for 2025: How Much & What to Expect

Given inflation and the rising cost of living for Australians, some relief is likely to come through Centrelink payment increases in 2025. These increases are intended to provide support to vulnerable groups such as pensioners, students, jobseekers, and families, based on inflation and annual indexation. In this article we provide a detailed look at the payment changes coming in 2025 and their impacts.

Key points: Centrelink payment increases for 2025

1. Indexation increases will come into effect from 1 January 2025, increasing payment rates across a range of programs.
2. Pension payments (Age Pension, Disability Support Pension, and Care Payment) will increase, reflecting the rising cost of living.
3. Youth’s Allowance and Jobseeker’s Allowance will receive a small boost to help students and jobseekers manage their expenses more easily.
4. Family Tax Benefit and other supplementary allowances will also increase.
5. Some income and asset thresholds will be raised to make more people eligible for these support programs.

Australia’s Pension Boost in 2025: How Much More Will You Get?

Centrelink payment rates and adjusted rates for 2025

1. Age Pension, Disability Support Pension, and Care Payment

Pension payments are reviewed in March and September each year, but a new benchmark increase will be introduced in January 2025.

• Single person: Estimated increase of $30-$35 per fortnight.
• Couples (joint): Estimated increase of $45-$55 per fortnight.

Additional support: Eligible pensioners can also receive rent assistance and energy subsidies to help manage the cost of living.

2. Youth Allowance and Austudy

The increases will benefit young Australians who are attending educational or training programs:

• Single person over 18 and living at home: Increase from $472.50 to approximately $485 per fortnight.
• Single person living away from home: Increase from $720.40 to approximately $740 per fortnight.

3. JobSeeker Payment for Job Seekers

Payments for job seekers will increase slightly.

• General JobSeeker (single, without children): increase from $749.20 to around $765 per month.
• Over 60 and long-term unemployed: estimated increase of $800+ per month.

4. Parenting Allowance

The government has increased eligibility for the parenting allowance (single), so single parents will now receive the allowance until their youngest child is 14. As well as this change, this payment will increase to around $925 per month due to indexation.

5. Family Tax Benefit (FTB)

Family Tax Benefit will increase slightly, with both Part A and Part B payments increasing:

• FTB Part A: increase of $15-$20 per month per child.
• FTB Part B: $10-$15 per fortnight increase for eligible single parents or homecare providers.

Other changes that will happen in 2025

Income and asset thresholds increased.

Income and asset thresholds will be increased to increase eligibility for Centrelink payments. This will allow more Australians to be eligible for these support programs.

• Pension income test threshold: The highest threshold for Part Pensions.
• Youth Allowance parent income test: Will be increased so that higher-income families can also be eligible.

Rent assistance hike

• Rent assistance is officially expected to increase further to help low-income workers deal with Australia’s housing crisis.

Energy subsidy and living cost payment

• The government plans to give pensioners and low-income families additional lump sum payments in response to rising costs of living, as it has done in previous years.

How to check the new payment rates

1. Log in to your myGov account that is linked to Centrelink.
2. Go to the Payments and Claims section, where you will find the updated payment rates.
3. Use Centrelink’s Payment Finder tool to check eligibility for additional benefits.

How will these changes affect Australians?

The 2025 payment increases could be a lifeline for many citizens, especially when facing economic instability. While these increases may not fully match inflation, they provide vital support for vulnerable groups.

To make the most of your benefits:

1. Review your eligibility for additional payments (such as rent assistance, energy subsidies).
2. If your situation changes, quickly apply for programs such as Youth Allowance or Parenting Payment.
3. Stay updated on new measures that will be announced in the federal budget or by Services Australia.

Take action today!

With Centrelink payment increases in 2025, it’s the perfect time to review your financial situation and find out what supports are available. Don’t miss out on benefits that can help you reduce the cost of living.

For more information, visit the Services Australia website or contact Centrelink directly.

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