Financial support for single parents will continue until their youngest dependent child turns 14, partly reversing a cut to the payment made by former governments more than a decade ago.
Prime Minister Anthony Albanese confirmed the lift from eight to 14 would be included in tomorrow's federal budget.
"I know firsthand what it's like to grow up with a single mum doing it tough, and we want to make sure that the children of single-parent families have the best opportunities in life," Mr Albanese said.
The lift is set to take effect from September 20, however it will require legislation passed by parliament.
Parents receiving the payment will be on a base rate of $922.10 per fortnight, about 95 per cent of the Age Pension, amounting to a $176.90 increase for people currently on JobSeeker who will become eligible for the payment.
The federal government said the change would provide an additional 57,000 single carers additional support, and nine out of 10 people who would benefit from the change would be women.
It will cost the federal government an additional $1.9 billion over four years.
But the federal government has stopped short of fully restoring cuts made by successive governments over the past two decades.
In 2006, the Howard Coalition government changed the eligibility requirements for the payment, lowering the age limit to eight years old. The decision was grandfathered, so people already on the scheme could remain on it.
The Gillard Labor government in 2012 scrapped the grandfathering, moving people with a child older than 8 but younger than 16 onto an unemployment benefit.
In a statement, Mr Albanese, Finance Minister and Minister for Women Katy Gallagher, and Social Services Minister Amanda Rishworth said that by the age of 14 children had "typically" settled into high school and needed less supervision, and parents were in a stronger position to take on work.
Mutual obligation requirements "to encourage single parents to participate in employment, study or training" would also remain in place.
Ms Rishworth said single parents should not have to choose between meeting their children's needs and their family's safety or security.
"Labor's changes will support more single parents and their children to ensure they have the safety net they need and that they are supported to re-enter the workforce when their children get older," she said.
Greens leader Adam Bandt said the government's federal budget would not help lift people out of poverty.
"Labor's budget will spend more on tax breaks for wealthy property investors with multiple properties than it will on its cost of living packages," Mr Bandt said.
"I was in the parliament when Labor chose to plunge single parents into poverty to try and balance the budget, and they ripped about $100 away from what single parents were receiving at a time when single parents were doing it incredibly tough.
"Labor doesn't get a pat on the back for not even fully reversing the terrible decision it made when it was in government."
