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1.4 million Aussies to get up to $255 cash boost

·Personal Finance Editor
·2-min read
Australian cash fanned out and people walking in the Sydney CBD.
Aussie parents will see a cash boost as the cost-of-living bites. (Source: Getty)

More than 1.4 million Aussie parents will see a cash boost after the Government announced an increase to family payments to ease cost-of-living pressures.

Minister for Social Services Amanda Rishworth said around 1 million pensioners would also benefit from increases in means-test-free areas, limits and deeming thresholds.

Rishworth said the increases were coming at an important time, with the cost of living skyrocketing.

“The indexation process complements the levers we are pulling across portfolios to help address the rising cost of living,” Rishworth said.

“We will continue to support Australians by cutting the cost of medicines on the PBS, freezing deeming rates for pensioners, expanding access to the Commonwealth Seniors Health Card, lowering energy costs and making child care cheaper.”

What can families get?

Family Tax Benefit Part A will increase by up to $204.40 per year for families with a child under 13 years, and $255.50 per year for those with a child 13 years and over.

Similarly, Family Tax Benefit Part B will increase by up to $164.25 per year for families who have a youngest child under five, and $116.80 per year for those whose youngest child is aged five to 18.

Those who receive other family payments, such as Multiple Birth Allowance and Newborn Supplement, will also receive an increase.

What can pensioners get?

The amount of income or assets an Age Pension, Disability Support Pension or Carer Payment recipient can have before their payment is affected will also increase.

“Social security and family payments have a built-in safeguard where they are automatically indexed at regular intervals to help them maintain purchasing power,” Rishworth said.

Cost-of-living pressures

The change comes as the cost of living sits atop the agenda for the new Labor Government.

The most recent inflation data found the cost of living rose 5.1 per cent in the March quarter, as a result of higher petrol and food prices.

In response, the Fair Work Commission raised the minimum wage by 5.2 per cent after Prime Minister Anthoiny Albanese submitted a request for a significant increase.

Fuel and energy prices have skyrocketed this year, as a result of supply chain issues and the war in Ukraine, putting pressure on global commodity prices.

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