Millions of Australians receiving government support will have their payments lifted by as much as $50 a fortnight as a small relief in the cost-of-living crisis. Source: The Australian.
More than 5.5 million people receiving income support or a pension will have their payments increased when indexation takes effect on September 20.
The increase is in addition to the Government’s cost of living package announced in its May budget, aimed at boosting income support.
Social Services Minister Amanda Rishworth said the Albanese Government recognised Australians were continuing to grapple with cost-of-living pressures.
“Indexation is a vital mechanism to safeguard the purchasing power of social security payments, ensuring they keep pace with the cost of living,” Ms Rishworth said.
Indexation involves increasing of payments or wages in order to maintain “purchasing power” amid inflation, which in June sat at six per cent.
The indexation will affect a range of government payment programs, including Jobseeker, age and disability support pensions, and single parents.
Those on single Jobseeker payments are among the biggest winners of the indexation package, with base payments rising by $56.10 to $749.20 per fortnight.
The increase is the largest nominal increase to the main adult unemployment benefit in Australia, with adult ABSTUDY recipients also set to receive a boost.
Those on single parent payments will now get a base payment rate of $942.40, reflecting a $20.30 increase, with those also receiving Jobseeker receiving a larger increase.
Those on an age, disability or carer support payment will also receive an increase of between $32.70 and $49.50 per fortnight for singles and couples respectively.
Income support recipients who are renting will also receive an increase to the maximum rates of Commonwealth Rent Assistance.
Payment indexation a boon for pensioners, parents as costs pinch (By Nathan Schmidt, NCA Newswire via The Australian)