Yahoo Finance 5 million Aussies set to see Centrelink pay rise
Millions of Australians will see a modest increase to their social security payments from 20 March as the payments are indexed to meet the rising cost of living.
The increase means single people on JobSeeker who are over 22 years old without children will see their rate rise by $5.10 a fortnight to $579.60, while couples will see a rise of $4.60 a fortnight to $523.30 each. The current rate of JobSeeker is $565.70.
The combined 3.6 million Australians receiving the Age Pension, the Disability Support Pension or the Carer Payment who are single will see a rise of $8.40 a fortnight to $952.70.
Couples on these payments will see a $12.60 rise a fortnight to $1,436.20 for the pair. This sum includes the Pension Supplement and Energy Supplement, which all pensioners receive.
Single recipients of the Parenting Payment will see a $7.10 per fortnight rise to $812.20, which includes the Pension Supplement and Energy Supplement.
These increases are in addition to the $50 fortnightly JobSeeker increase, set to come into effect on 1 April after the Coronavirus Supplement winds down entirely.
Why the increase?
Social security payments are indexed to change in March and September each year in line with the changing cost of living.
The pension is linked to the Consumer Price Index, however due to the COVID-19 recession last year and the associated deflationary environment, pensioners lost out on an increase to their payment in September last year. This was the first time this happened in 23 years.
The Government announced Australia’s pensioners would receive another two payments, valued at $250 each, as part of the October Federal Budget, to address the lack of pension increase.
Pensioners are set to receive the fourth and final round of Economic Support Payments this week, with 5 million Australians on welfare support expected to get the cash injection
“For pensioners alone, those four payments over the last 12 months total $7 billion,” Social Services Minister Anne Ruston said.
“Between these Economic Support Payments and the latest indexation, we are delivering more support to Australians who need it most.”
More details on the indexation rates are available on the Department of Social Services’ website.
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