Yahoo Finance Major Centrelink cost of living changes for 2 million Aussies kick in today
There will be a boost to several payments as a result to indexation and some payments will have asset and income tests increased.
More than two million Aussies are set to benefit from the latest round of Centrelink changes, which kick in today. There will be a cost-of-living boost to those on the Family Tax Benefit as well as other family payments, deeming thresholds will be indexed, and several other payments will have income and asset thresholds increased.
Social Services Minister Amanda Rishworth hopes the changes will deliver "timely boosts to people" across the country who might be doing it tough. Here's a list of all the changes coming into effect from July 1.
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Family Tax Benefit A and B
Around 1.3 million families on the Family Tax Benefit will see an increase in their fortnightly payments as a result of the indexation. This uplift in payments will also affect those on the Newborn Supplement and Multiple Birth Allowance as well.
For someone on the Family Tax Benefit (Part A), the maximum rate of payment, excluding supplements, for a child under 13 years old goes from $213.36 to $222.04 per fortnight. For a child aged between 13 and 19, the payment increases from $277.48 to $288.82 every two weeks.
The energy supplement per child has not changed.
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The Multiple Birth Allowance will see a person giving birth to triplets receive $191.94 a fortnight, which is up from $184.38, while the payment for quadruplets and more has gone up from $245.70 to $255.78.
The Newborn Supplement, the payment over 13 weeks for a first child or multiple children, has increased from $1,924.65 to $2,003.82, an increase of nearly $80. A second or subsequent child, will see a payment over 13 weeks go from $642.46 to $668.85.
The Stillborn Baby Payment has increased by close to $166, and per child will increase from $4,059.17 to $4,225.10.
For families receiving Family Tax Benefit Part B, the maximum rate of payment for a family with a youngest child aged under five years old will increase by $7.42 to $188.86 a fortnight. For families with a youngest child aged five years old or over, the increase will be $5.18 to a maximum of $131.74 a fortnight.
The end of year supplements for Family Tax Benefit Part A and Family Tax Benefit Part B will increase by $36.50 to $916.15 and $18.25 to $448.95 respectively.
Age Pension changes
You need to be 67 years old to access the Age Pension and also pass an income and asset test. From today, the thresholds for these tests will be going up with inflation.
For the income tests, single pensioners will be able to earn $212 a fortnight - up $8 a fortnight from $204 - and will still be eligible for the full single pension. Couple pensioners will be able to earn $372 a fortnight - up $12 a fortnight from $360 - and still get the full amount.
Once this threshold is exceeded, the pension amount decreases by 50 cents for every dollar over $212 and $372 respectively.
The maximum amount you can earn before your pension is cut off completely will now be $2,444.60 per fortnight for singles and $3,737.60 for couples.
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For asset tests, single homeowners will be able to have assets of $314,000 and receive a full pension, while single non-homeowners can have $566,000. That’s up from $301,750 and $543,750 respectively.
Couple homeowners will be able to have combined assets of $470,000 and get the full amount, while couple non-homeowners will be able to have $722,000. That’s an increase from $451,500 and $693,500.
For part pensions, single homeowners will be able to have assets of up to $686,250, while single non-homeowners will be able to have $938,250. These thresholds are up from $674,000 and $916,000.
Couple homeowners will be able to have assets of up to $1,031,000 and still receive a part pension, while single non-homeowners will be able to have $1,283,000. These thresholds are up from $1,012,500 and $1,254,500.
Deeming thresholds will be indexed
Deeming is used by the government to work out your income from your financial assets. The government assumes your assets earn a set rate of income, regardless of what they actually earn. This is then used to determine your income and work out your payment rate.
The deeming thresholds will go through indexation from today, meaning for singles, the first $62,600 of their assets will be deemed as earning 0.25 per cent, which is up from $60,400. For couples, the first $103,800 of their assets will be deemed as earning 0.25 per cent, which is an increase from $100,200.
Anything above these thresholds is deemed as earning 2.25 per cent.
This comes on top of the government freezing deeming rates at 0.25 and 2.25 per cent until June 30 next year, which should provide relief for around 876,000 part-rate income support recipients.
Paid Parental Leave
Changes to Paid Parental Leave will edge Australia closer to the government's target of expanding the payment to 26 weeks by 2026. From today, families will be able to access 22 weeks of leave, up from 20 weeks.
There are also threshold changes coming in today. Individuals will now be disqualified from the payment if they earn above $175,788, which is nearly $7,000 more. The disqualifying family income limit is $364,350, which is up more than $14,000 from $350,000.
The government said these changes are on top of announcements in the Federal Budget that will provide $7.8 billion in cost-of-living relief, including a 10 per cent boost to Rent Assistance and paying superannuation on Paid Parental Leave.
“Indexation delivers timely boosts to people receiving family payments and pensions,” Rishworth said.
“These increases will provide a direct boost to fortnightly payments for families.”
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