We’ve got significant updates for the Centrelink payment increase 2024! To keep pace with the cost of living, there’s been a notable 6% increase across various benefits. It’s all about making sure the support provided truly makes a difference in people’s lives.
Services Australia has confirmed that the payment increase will take effect 30 March 2024 and impact Jobseeker and Disability Support, Youth Allowance payment rates for students and Australian Apprentices, Age Pension, Carer Payment, and Disability Support Pension.
Furthermore, Centrelink’s rent assistance is gearing up for a substantial boost, with rates set to rise in March and September.
The federal government, in its latest budget, has underscored its commitment to the citizens by announcing a comprehensive welfare boost as part of a broader cost-of-living package. This initiative is a testament to the government’s dedication to alleviating financial pressures on its citizens.
Read on to get a deeper understanding of how these Centrelink adjustments might influence you or your family and to grasp the broader implications on Australia’s welfare framework.
Who is Impacted By the Centrelink Payment Increase
| Payment Type | Increase (per fortnight) | Total (per fortnight) |
| Aged pension | $19.60 for singles and $29.40 for couples | $1,116.30 for singles and $1,682.80 for couples |
| Disability support pension | $19.60 for singles and $29.40 for couples | $1,116.30 for singles and $1,682.80 for couples |
| Carer payment | $19.60 for singles and $29.40 for couples | $1,116.30 for singles and $1,682.80 for couples |
| JobSeeker | $13.50 for singles with no children and $14.40 for singles with children | $762.70 for singles with no children and $816.90 for singles with children |
| ABSTUDY | $13.50 for those living at home and independent with no children | $762.70 (but $771.50 including the energy supplement) |
| Rent assistance | $3.40 for singles, $2.27 for singles sharing rent, $3.40 for couples | $188.20 for singles, $125.47 for singles sharing rent, $177.20 for couples |
| Single parents | $17.50 | $959.40 (but $999.70 including supplements) |
| Partnered parents | $12.30 | $698.30 (but $706.20 when including the energy supplement) |
| Youth Allowance | Single, no children, younger than 18, and live at your parent’s home | $395.30 |
Why the Government is Increasing Centrelink Payments
These updates are part of a larger effort to boost social services in Australia through indexation efforts. By increasing payments, the government aims to provide more support for those in need, ensuring safety nets are robust and responsive.
What is Indexation And How Does it Affect Welfare Payments
Indexation means Centrelink adjusts how much money people get to match the rise in living costs. This helps ensure the money they receive keeps its value over time, despite prices going up.
Understanding these changes means understanding when and how these updates happen, so people can plan their finances better.
With regular indexation, Centrelink payments will continue to adjust, ensuring benefits keep pace with economic shifts. This indexation ensures that the purchasing power of recipients is maintained, a critical factor for non-concessional individuals and families.
Current Centrelink Payment Rates
Centrelink payment rates are updated on 1 January of every year. Kindly note that these are just a guide and information is subject to change.
You are encouraged to verify details using the sources below for the most updated information.
| Your situation | Your maximum fortnightly payment from 1 January 2024 |
|---|---|
| Single, no children, younger than 18, and live at your parent’s home | $395.30 |
| Single, no children, younger than 18, living away from your parent’s home to study, train or look for work | $639.00 |
| Single, no children, 18 or older and live at your parent’s home | $455.20 |
| Single, no children, 18 or older and need to live away from your parent’s home | $639.00 |
| Single, with children | $806.00 |
| A couple, with no children | $639.00 |
| A couple, with children | $691.80 |
Additional Centrelink Payment Rates
| Your situation | Your maximum fortnightly payment |
|---|---|
| Single and live at your parent’s home | $535.50 |
| Single and need to live away from home | $754.60 |
| A couple, with no children | $691.80 |
Note that the maximum amount of payment you can receive will be reduced if your income is above a certain level. You can find more information about the income limits on the Centrelink website.
Here are some links to the Centrelink website where you can find more information about each payment:
- Age Pension
- Pensioner Concession Card
- Carer Payment
- Disability Support Pension
- ABSTUDY Living Allowance
- Youth Allowance
- Family Tax Benefit Part A
- Parenting Payment partnered
- JobSeeker Payment
How do I qualify for the Age Pension?
To qualify for the Age Pension in Australia, you must meet the following criteria:
- You must be 67 years of age or older.
- You must be an Australian resident.
- You must have lived in Australia for at least 10 years.
- You must meet the income and asset tests.
The income test is used to determine how much of the Age Pension you will receive. The asset test is used to determine if you are eligible for the Age Pension at all.
To pass the income test, your income must be below a certain level. The income limit is different for single people and couples. The criteria are as follows:
Single person
| Income per fortnight | Amount your pension will reduce by |
| Up to $204 | $0 |
| Over $204 | 50 cents for each dollar over $204 |
Couple living together or apart due to ill health
| Combined income per fortnight | Amount your combined pension will reduce by |
|---|---|
| Up to $360 | $0 |
| Over $360 | 50 cents for each dollar over $360 |
To pass the asset test, your assets must be below a certain level. The asset limit is different for single people and couples. For a single person, the asset limit is $2,397.40 per month. For a couple, the asset limit is $3,666.80 combined.
If you meet all of the criteria, you may be eligible for the Age Pension. To apply for the Age Pension, you can contact Centrelink.
Here is a table summarising the Age Pension eligibility criteria:
| Criteria | Single | Couple |
|---|---|---|
| Age | 67 years of age or older | 67 years of age or older |
| Residency | Australian resident | Australian resident |
| Australian residency | At least 10 years | At least 10 years |
| Income | Under $204 per fortnight | Under $360 per fortnight |
| Assets (homeowner) | Under $301,750 | Under $451,500 |
| Assets (non-homeowner) | $543,750 | $693,500 |
Parenting Payments For for Single Parents
To get parenting payment you must meet all of the following:
- be under the income and asset test limits
- meet principal carer rules for a child under 14 if you’re single, or under 6 if you have a partner
- meet residence rules
- your partner is not currently getting Parenting Payment.
Single parents will receive a higher rate of income support once their youngest child turns 14. This is a significant change from the current rule, offering more assistance for single parents dealing with cost-of-living.
| Your circumstance | Your maximum fortnightly payment from 20 March 2024 |
| Single | $987.70 includes Parenting Payment and a pension supplement of $28.30 |
| Partnered | $698.30 |
| Partnered, separated due to illness, respite care or prison | $816.90 |
Energy Relief: A Key Part of the Cost-of-living Package
The federal budget also includes an energy relief component, offering cash boosts to aid Australians in handling rising energy costs. This provision is set to benefit millions, further enhancing the value of the cost-of-living package.
From 1 July 2023, qualified households may have gotten assistance for their energy usage through the Energy Bill Relief Fund, a program managed by the state and territory governments.
To qualify for this relief, individuals must either possess a valid concession card or be recipients of designated government payments within the state or territory they reside in.
The extent and amount of relief are dependent upon the location. Use these government sites to learn more:
Support for Low-Income Households: Rebates and Relief
For those in the lower income bracket, the government has introduced the low income household rebate. This rebate aims to offset some of the financial burdens these households face.
Additionally, to combat the rising energy costs, the family energy rebate has been introduced. This rebate will be especially beneficial for families struggling with their electricity bills, offering them some respite from the increasing energy prices.
“The NSW Low Income Household Rebate is $285 per retail (on-market) household, per financial year.“
Services NSW
The Plan For Future Centrelink Payment Increases
As Australia navigates inflation and cost of living challenges, these Centrelink payment increases are a key part of the solution. They represent the government’s commitment to support its citizens, ensuring that financial assistance is both adequate and timely.
The Core of Centrelink Enhancements
The federal government’s announcement highlighted increases across various payments, including disability support pension, youth allowance payments, age pension, and notably, rent assistance.
This move aims to alleviate the financial strain many face, ensuring financial support is aligned with current inflation rates.
Rent Assistance: A Closer Look
Rent assistance adjustments are especially noteworthy. Designed to aid those struggling with housing costs, the increase is a direct response to cost of living hikes. This adjustment means more support for families and single pensioners, ensuring housing affordability.
Need more information? Find out how much rent assistance can Centrelink give you in Soho’s article.
More on the Centrelink payment increase
How far back does Centrelink back pay?
If you’re wondering how far back Centrelink will pay rent assistance, it’s up to six months if you are eligible. For those on a Centrelink rental allowance, this means that if you apply for a payment and are approved, Centrelink will pay you for the months that you have missed.
For example, if you apply for a payment in January and are approved, Centrelink will pay you for the months of November, December, and January. This includes rent assistance.
How can I get an urgent payment from Centrelink?
You can get an urgent payment from Centrelink if you are in severe financial hardship and cannot wait for your regular payment. To get an urgent payment, you will need to contact Centrelink and provide them with evidence of your financial hardship.
This could include things like a letter from your landlord stating that you are behind on rent, or a bank statement showing that you have no money in your account.
What are the changes to Centrelink payments in Australia 2024?
- Indexation: Most Centrelink payments, including pensions, are indexed twice a year based on the Consumer Price Index (CPI). The exact increase hasn’t been announced yet but will be based on the latest inflation figures.
- Energy supplement: There were no changes to the Energy Supplement in the 2023-24 budget. It remains at $14 per fortnight for eligible recipients.
- Other potential changes: The government is currently reviewing several Centrelink payments and programs, so further changes might be announced later in the year.
What are the changes to the pension system in Australia 2024?
- Pension age increase: The age at which you can qualify for the Age Pension gradually increased to 67 by 2023. This change continues in 2024.
- Superannuation guarantee: The compulsory Superannuation Guarantee is gradually increasing from 9.5% to 12% by 2025. This may affect income for some pensioners.
- No major policy changes: There were no major changes to the pension system announced in the 2023-24 budget.
How much is carers payment in Australia?
- No bonus for 2023: There was no additional bonus payment for carers announced in the 2023-24 budget.
- Carer Payment amount: The current maximum rate for the Carer Payment is $1,020.60 per fortnight for a single person and $1,538.60 per fortnight for a couple combined (including supplements).
What is the $4000 Centrelink payment?
The $4000 Centrelink payment is a one-off payment to eligible pensioners in Australia. The payment is designed to help pensioners with the rising cost of living.
Is there another $750 payment for pensioners?
No, there was no other $750 payment for pensioners in 2023. The one-off payment of $4000 is the only additional payment that pensioners will receive this year.
