The Australian government has planned to boost Centrelink payments to help Australians with the rising cost of living. The Department of Social Science has released the January 2025 Indexation which will be effective from 01 Jan 2025.
The cash boost in the Centrelink payments will affect many Australians’ lives and help them cope with rising inflation. With the increase of Centrelink payment, the government has also increased the income test threshold that every Australian should be aware of.
Centrelink Payments Increase January 2025
The Australians are up for the big increase in the Centrelink payments from 01 January 2025. The government estimates that millions of Australians will benefit from the hike in payments and will get the huge help that they need the most.
The government indexes the regular welfare payments to ensure they match with rising cost of living and Australians will have enough payments to deal with high goods & services prices, rent, and other expenses. The indexation is based on the Consumer Price Index and other indices to ensure it matches the rising cost of living.
As per the January 2025 indexation, the Centrelink payment that will increase, includes Youth Allowance, Carer Allowance, Austudy, disability pension, and other student & miscellaneous payments. The students who receive Austudy and youth allowance will benefit the most through the increase and it will help them deal with extra expenses that may arise due to living far away from home.
Youth Allowance Increase January 2025
The Department of Social has announced the January 2025 indexation for welfare payments, based on that the students who received the Youth allowance can expect the following increase in their payment depending on their family situation:
Family Situation | Previous Payment | New Payment (01 January 2025) |
Single, under 18, living at home with parents | $395.30 | $410.30 |
Single, under 18, and living away from home | $639 | $663.30 |
Single, age 18 or over, living at home | $455.30 | $472.50 |
Single, age 18 or over, and living far away from home | $639 | $663.30 |
Single with children | $806 | $836.60 |
Partnered with no child | $639 | $663.30 |
Partnered with children | $691,80 | $718.10 |
Special Rate under Youth allowance for special circumstances, such as disability, single parent, etc.:
- For single living at home will receive $555.80 from $535.50 in January 2025;
- Partnered with no children will receive $718.10 from $691.80 from Jan 2025;
- Single who are living away from home will receive $783.30 from $754.60 from Jan 2025
Austudy Centrelink Payment Increase January 2025
The maximum rate of Austudy payment will be increased based on the family situation from Jan 2025, here’s the maximum rate:
Family Situation | Current payment | New Payment (Jan 2025) |
Single with children | $806 | $836.60 |
Partnered with children | $691.80 | $718.10 |
Single | $639 | $663.30 |
Partners with no child | $639 | $663.30 |
Special Rates | ||
Single with no child | $754.60 | $783.30 |
Partnered with no child | $691.80 | $718.10 |
Disability Support Pension Centrelink payment increase Jan 2025
The payment for disabled people under 21 with no dependent children will also increase from Jan 2025 Centrelink payment increase based on the following rates:
Family Situation | Current Payment | New Payout (Jan 2025) |
Single, under 18 have a dependent | $548.80 | $569.60 |
Single, under 18, with no dependent | $792.50 | $822,60 |
Single, aged 18 to 20, with dependent | $608.70 | $631.80 |
Single, 18-20 with no dependent | $792.50 | $822.60 |
Youth Disability Supplement | $153.50 | $159.30 |
Couple | $792.50 | $822.60 |
Miscellaneous Centrelink Payment increase Jan 2025
With the increase in many Centrelink payments Australians can check the following benefits and their increase in payment that will be applicable from Jan 2025:
- Carer Allowance would increase from $153.50 to $159.30 by a $5.80 increase rate.
- The additional child amount would increase to $158.70 for Children aged under 13, $220.80 for children aged 13 – 15, and $75.50 for a single payment.
- The double orphan pension would increase to $79.70 from the $77.00 rate.
- The mobility allowance would increase to $120.30 (standard rate), and $168.20 (Enhanced rate).
- The ABSTUDY payment for living allowance would increase based on the family situation and age of the student.
Apart from this, the pharmaceutical allowance will remain the same as the previous amount: $6.80 for singles, $3.40 for couples, and $6.80 for illness-separated partners.
Change in Income Threshold from Jan 2025
The income limit of the payments has also increased for the Income test adding more people to the benefits, such as:
- Youth Allowance: The lower income threshold for free areas is $538.00, whereas the upper-income threshold will be $633.00. Apart from this the income limit will be affected based on the family situation and allowances you receive.
- The income threshold for Austudy has increased at the same rate as the Youth allowance for lower-income threshold and upper-income threshold.
- The income test for Disability Support pension under the 21 income threshold has been hiked based on the family situation, for instance, single & under-18 recipients with a dependent income limit for January 2025 will be $1376.60.
- The income limit for carer payments has also increased to $140,795 with $868,500 for the lower asset limit and $1290, 250 for the Higher asset limit.
- The income limit for Jobseeker payment is the same as before, for instance, $1,583.50 for Single aged 55 or over.
The Australian government regularly indexes the welfare payments to ensure people receive support that can help them survive the rising cost of living, the Australians should check the new changes in the payments and income limit to understand the upcoming payment.