Millions of Aussies to receive pension increase next month as major changes come to Centrelink

Next month millions of Aussies will receive a boost to their incomes as support payments are reassessed and raised to keep up with inflation.

Payment increases are coming to around five million Australians who are on the Age Pension, Carer Payment, Commonwealth Rent Assistance, ABSTUDY, JobSeeker, Disability Support Pension and Parenting Payment Single.

Whichever measure of inflation rises the most - the consumer price index or wage price index - will become the benchmark used to determine how much most Centrelink incomes are boosted.

The pensioner and beneficiary living cost index is also taken into account for pension changes.

Indexed payments are determined twice a year - in September and March - so new figures can be expected next month.

CHANGES FOR JOBSEEKERS

From March, there will also be different compliance and work requirements for some Centrelink recipients.

Fewer JobSeeker recipients will be cut off from Centrelink payments, with individuals newly registered to Workforce Australia or Disability Employment Services not facing compliance action if it’s the first time they’ve failed to meet a requirement.

There will also be an exemption for job seekers who have worked 30 hours a fortnight for two months if they miss an appointment with their employment service provider.

“Our staff will investigate all compliance actions in the ‘penalty zone’ before a financial penalty can be applied,” Services Australia said.

CHANGES FOR CARERS

Changes are coming for those on a Carer Payment, too, with carers able to work more flexible hours without it impacting their payment.

Instead of a 25-hour work week, carers will be able to split 100 hours over a four-week period under the new rules.

And those who work more than 100 hours will still be able to use respite days to keep their payment.

“You will still report your hours each fortnight, but you will not have to report study, training, volunteering or travel time,” a statement from Services Australia said.

WHERE THE PAYMENTS STAND NOW

The government payment figures from September 2024 brought an increase for single aged pensioners of $28.40 a fortnight, and double that amount for couples.

Maximum pensions for singles reached $1144.40 fortnightly, making up an annual pension of around $28,000 according to calculations from the Combined Pensioners and Superannuants Association.

A combined couple could make a yearly pension of $44,900.

Single parents had a $19.80 increase to payments, receiving $1026.30 a fortnight; and JobSeeker was lifted by $15.30.

There was a 10 per cent boost to the maximum rates of Commonwealth Rent Assistance, with indexation added on top.

This meant $23 more a fortnight for singles and $27.02 for families with up to two children.

At the time of the changes, Social Services Minister Amanda Rishworth said they were designed to help Aussies meet cost-of-living pressures.

“Indexation, together with our budget measures, means maximum rates of Commonwealth Rent Assistance will have increased by around 45 per cent since the Albanese Government was elected,” Ms Rishworth said in September.

“This indexation will deliver timely boosts to people receiving allowance payments and pensions, ensuring that these vulnerable cohorts have more money in their pockets for everyday expenses.”