Starting March 20, 2024, over five million Australians receiving social security payments will experience changes, as the latest indexation update comes into effect.
This means that pensions, certain payments, and Commonwealth Rent Assistance will all be adjusted to account for the rising cost of living.
Which Payments Will Increase?
The upcoming adjustments will impact several key social security payments, including:
- Age Pension
- JobSeeker
- Parenting Payment
- Pensioner Payment
- Carer Payment
- Commonwealth Rent Assistance
Age Pension: Increase for Singles and Couples
The Age Pension will see a modest increase for both singles and couples:
- Singles will receive an additional $4.60 per fortnight, bringing the maximum rate to $1,149 per fortnight.
- Couples will each see an increase of $3.50 per fortnight, which means they will receive $866.10 each, totaling $1,732.20 for both members of the couple.
JobSeeker: Payment Adjustment for Various Groups
The JobSeeker payment will also increase in several categories:
- Single recipients (22 years or older) without children will receive an extra $3.10 per fortnight, bringing the total to $789.90, including the energy supplement.
- Single recipients (22 years or older) with children will see an increase of $3.30 per fortnight.
- Recipients aged 55 or older, and those aged 22 or over with assessed partial capacity to work, will see an increase of $3.30 as well.
- For partnered JobSeekers, both individuals will see an increase of $2.80 per fortnight.
Commonwealth Rent Assistance: Changes for Renters
Commonwealth Rent Assistance will also be adjusted:
- A single person without children receiving rent assistance will see an increase of 80 cents, bringing the total to $212 per fortnight.
- A couple receiving rent assistance will also see an increase of 80 cents, resulting in a total of $199.80 per fortnight.
- A single sharer will see their rent assistance increase by 53 cents, bringing it to $141.33 per fortnight.
Parenting Payments: Increase for Single and Partnered Parents
For those receiving parenting payments:
- Single parents will receive an additional $4 per fortnight.
- Partnered parents will see an increase of $2.80 per fortnight.
What Is Indexation?
Indexation refers to the adjustments made to social security payments, occurring four times a year. These adjustments are designed to help recipients maintain their purchasing power in the face of rising living costs.
Since indexation is linked to inflation, when inflation rises, the payment increases are more significant. This explains why, during periods of high inflation, recipients have seen more substantial increases in their payments compared to recent years, where inflation has been lower.
Complete List of Payment Increases
A detailed list of the payments increasing on March 20, 2024, along with updated income and asset limits, is available on the Department of Social Services website.
FAQs
What is the age pension increase for singles?
Singles will receive an increase of $4.60 per fortnight, bringing the age pension to $1,149 per fortnight.
How much will the JobSeeker payment increase?
JobSeeker recipients will see an increase ranging from $2.80 to $3.30 per fortnight, depending on age and family situation.
How much will Commonwealth Rent Assistance increase?
Rent assistance will rise by 80 cents for singles without children and couples, and 53 cents for single sharers.
Why do social security payments increase?
Payments are increased through indexation to offset the rising cost of living and maintain the purchasing power of recipients.