Around one million young people, carers and students will have their welfare payments boosted by up to $20 a week at the start of next year.
The payments will indexed by just over six per cent, with the increases to start on January 1.
Youth allowance will increase by between $19.10 and $41.40 a fortnight while people on Austudy will receive between $32.40 and $41.40 more each fortnight.
People on the disability support pension aged under 21 and without children will receive between $27.40 and $40.70 a fortnight.
The rates for ABSTUDY, isolated children assistance, mobility allowance, double orphan pension, carer allowance and pharmaceutical allowance will also increase.
Social Services Minister Amanda Rishworth said the increases would help ease the rising cost of living pressures.
"This will have a significant impact on the hip pockets of young people she said.
"Income free areas for student income support recipients will also benefit from indexation, meaning they are able to earn more before their payment is impacted."
