This was the largest pension indexation increase in more than 12 years and the largest increase to allowances in three decades.
Those receiving a pension will receive the full payment boost in the first normal pension pay cycle.
For most, including those on the Service Pension, that first boosted payment will have occurred this week.
Minister for social services Amanda Rishworth said this increase would help all Australians, including veterans.
“This will give a much-need boost to many people and help ease cost of living pressures,” Rishworth said.
“We’re pleased the full fortnightly increase will be hitting most pensioners’ accounts from today.”
How much are payments increasing?
The Service Pension, Age Pension, Disability Support Pension and Carer Payment have risen by $38.90 a fortnight for singles and $58.80 a fortnight for couples in the latest indexation round.
The maximum rate of pension has increased to $1,026.50 a fortnight for singles and $773.80 for each member of a pensioner couple or $1,547.60 per couple.
The rate of JobSeeker Payment for singles without children has increased by $25.70 a fortnight to $677.20 including Energy Supplement, while Parenting Payment Single has increased by $35.20 per fortnight to $927.40 including Pension Supplement and Energy Supplement.
The pension paid to war widow(er)s rose by $39.60 to $1,044.30 per fortnight.
Additionally, Disability Compensation Payments will increase by $59.90 per fortnight for the Special Rate, $33.20 for the Extreme Disablement Adjustment rate, and $21.30 for the 100 per cent General Rate of Disability Compensation Payment.