Almost 2 million pensioners and households in Australia will receive a boost in social security payments due to quarterly income threshold changes.
These changes will take effect from July 1. They are designed to ensure that the government’s support continues to keep pace with inflation.
Some of the programs that will benefit from these changes include the Family Tax Benefit, the Newborn Supplement, the Stillborn Baby Payment, and the Essential Medical Equipment Scheme.
Families with kids under thirteen years of age will receive the maximum fortnightly benefit of $222.04, an increase of about $8.68.
For households with kids aged 13 and above, the maximum fortnightly payment will be $288.82, an increase of about $11.34.
On the other hand, the supplement for the family tax benefit part A will increase by about $36.50.
Income thresholds for people who are on the Parental Leave Pay will increase due to indexation changes.
Income eligibility for other welfare programs will also be expanded.
Assets limits will be raised for people on the Youth Allowance, Jobseeker’s Benefit, and the Special Benefit.
According to the budget documents, the deeming rates will stay the same for another year.
It is estimated that about 876,000 income support participants, including around 400,000 age pensioners, will benefit from this decision.
According to Amanda Rishworth, the minister for social services, the indexation changes will provide people with a boost in their monthly payments.
These changes are based on the Consumer Price Index.
According to the most recent data, inflation had risen by about 3.6 percent in the 12 months ended March 2024.
Some of the factors that have been identified as contributing to this increase include the increasing cost of education, healthcare, and rents.