Australians receiving Centrelink benefits will feel slight relief today as March indexation takes effect across many payments.
The Government indexes some Centrelink payments to bring them in line with inflation twice a year — once in March and once in September.
These increases maintain the real value of the payments but they do not provide an increase in the purchasing power of households relying on the payments.
Which payments are increasing?
The following payments will see indexation increases from today:
- Age pension
- ABSTUDY
- Disability support pension
- Carer payment
- JobSeeker
- Parenting payment (single parent)
How much are Centrelink payments increasing by?
All the above payments are increasing by roughly 3.7 per cent, in line with the Consumer Price Index (CPI) which has risen steadily over the past year.
How much are the age pension, disability support pension and carer payment increasing by?
All of these payments are the same basic amount and will be increasing by the same amount with indexation.
The fortnightly payment for a single person will increase by $37.50.
Previously, it was $1,026.50. But from this week it'll be $1,064 a fortnight.
Fortnightly payments for people on one of these payments who are in a partnership will increase by $28.20 per person.
Previously, both partners received a payment of $773.80. But from this week it'll be $802 a fortnight.
How much are ABSTUDY and JobSeeker increasing by?
Both these payments have the same base rate and will increase by the same amount with indexation.
The base ABSTUDY and JobSeeker rate for those aged 22 years and over will increase by $24.70 a fortnight.
Previously, the payment was $668.40. But from this week it'll be $693.10 a fortnight.
The rate for those on ABSTUDY or JobSeeker who are over 60 or have a dependent child will increase by $26.60
Previously it was $718.60. But from this week it'll be $745.20 a fortnight.
Those on ABSTUDY and are also in a partnership will see their payments rise by $22.50 per partner.
Previously, both partners received $608.70. But from this week it'll be $631.20 per partner each fortnight.
How much is the parent payment increasing?
If you are a single parent you'll see a fortnightly payment increase of $33.90
Previously the payment was $927.40. But from this week it'll be $961.30 a fortnight.
If you're a partnered parent, your payment will increase by $22.50 per partner.
Previously, the payment was $616.60. But from this week it'll be $639.10 per partner per fortnight.
There's debate over whether these increases go far enough
Federal Social Services Minister Amanda Rishworth says the increases are "an important part of the system and helps those doing it toughest".
"Australia's social security system exists to support our most vulnerable citizens, and we know they are feeling the pinch," she says.
"Indexation is a pillar of our social security system and we want more money in the pockets of everyday Australians so they can better afford essentials."
But the Australian Council of Social Service (ACOSS) says these indexation increases don't address the inadequacy of income support, especially for people on JobSeeker.
The JobSeeker rate is increasing by $1.77 a day for people under 60.That takes the payment from about $47.75 to $49.50 a day.
This is 57 per cent below minimum wage and 34 per cent below the age pension.
ACOSS Acting chief executive Edwina MacDonald wants the government to raise JobSeeker payments to the same level as the age pension amid rising inflation.
"People on JobSeeker and related payments cannot afford to eat enough, cannot get essential medication or healthcare, and often go into debt to pay their energy bills," she says.
"The only way to address this problem is to deliver a real increase to JobSeeker and related payments so that they are lifted to at least the same level as the pension."
