BREAKING: Centrelink Payments to SOAR for Millions of Aussies – But There’s a Catch!
- More than 5 million Australians will see an increase in their Centrelink payments from Saturday, but not every payment is going up.
- The boosts are designed to keep up with the inflation rate, but some part-pensioners could actually receive LESS due to changes to deeming rates.
- The increases apply to Age Pension, Carer Payment, Disability Support Pension, and other key benefits, but the exact amount you’ll get depends on your individual circumstances.
Millions of Australians relying on Centrelink payments are set to receive a welcome boost from Saturday, as the federal government indexes social security benefits to keep pace with inflation. According to the Department of Social Services, more than 5 million people will see an increase in their bank accounts, with singles eligible for $29.70 extra per fortnight and couples combined receiving $44.80 more.
However, not all Centrelink payments are going up, and some part-pensioners could actually receive less due to changes to deeming rates. Deeming is a set of rules used to work out how much income people earn from their financial assets, and the rates are increasing from Saturday. While this might seem like a minor adjustment, it could have a significant impact on some retirees.
“The savings and investments that a single pensioner can hold and still get the full pension under the income means test will be lower, because the rules will treat them as earning more income,” warned Professor Susan Thorp from the University of Sydney in a piece for The Conversation. “In addition, the reductions in the pension as financial assets rise will be a bit larger.”
The federal government has defended the changes, saying they are part of a staged return to pre-pandemic deeming rates. “Deeming rates were frozen at artificially low levels as an emergency COVID-19 measure, and the Albanese government extended the freeze to help shield age pensioners and other income support recipients while the economy recovered,” said Social Services Ministers Tanya Plibersek and Ged Kearney in a media release.
So, how will the increases affect you? The Department of Social Services has published a detailed table outlining the changes, but as a rough guide, here are some of the key payments that will go up:
Age Pension, Carer Payment, and Disability Support Pension: Singles will receive an extra $29.70 per fortnight, while couples combined will get $44.80 more.
Commonwealth Rent Assistance: Eligible recipients will see an increase of up to $3.80 per fortnight.
JobSeeker: Singles will receive an extra $14.20 per fortnight, while couples combined will get $21.30 more.
ABSTUDY (aged 22 and over): Eligible students will see an increase of up to $10.60 per fortnight.
Parenting Payment: Singles will receive an extra $13.20 per fortnight, while couples combined will get $20.30 more.
Remember, the exact amount you’ll receive depends on your individual circumstances, so be sure to check the Department of Social Services website for more information.