Millions of Australians, including those on the age pension, disability support pension, and JobSeeker, are set to see their Centrelink payments rise in March 2025.
As inflation remains high (although the annual rate of inflation has eased), Australians are still feeling the pinch of the cost-of-living crisis. Centrelink payments will increase in line with indexation.
What does that mean? Well, the actual dollar amount of increases to the payments depends on the Consumer Price Index (CPI) — a measure of the prices paid by consumers over a period of time, in this case, a quarter — and Pensioner and Beneficiary Living Cost Index (PBLCI) — which measures the cost of living for Aussie households whose primary income source are government benefits or pensions.
Indexation is measured twice a year (in September and March), and Social Security payments are adjusted regularly based on inflation levels. This ensures that the amount people receive maintains its buying power even when the cost of living rises, preventing their income support from losing value in real terms due to inflation.
Here’s everything you need to know about the payment increases and the Australian age pension.
How much is the age pension?
Under the raft of increases to welfare payments, the age pension, along with JobSeeker and Commonwealth Rent Assistance, will all see a boost. In line with indexation, from March 20, pensioners will see their maximum single rate increase by $4.60 to $1149 per fortnight, and couples by $7 to $1732.20.
“We’ve spent the past three years strengthening our social security system, so that it helps Australians at whatever age or stage they’re at in life,” said Minister for Social Services Amanda Rishworth.
The payment increase comes as inflation and the consumer price index (CPI) remain high. However, there have been calls from independent bodies that these payments are still not enough. The Australian Council of Social Service (ACOSS) voiced concerns that the payment increases were not enough.
“ACOSS welcomes investment in social security but the core issue remains: JobSeeker, Youth Allowance, and related payments remain below all measures of adequacy,” the agency said via its social media.
The Council on the Ageing (COTA) released a report which revealed that six in ten older Australians reported financial stress. National Seniors Australia also found that 80 per cent of people over the age of 50 reported being affected by rising living costs, with health costs, energy prices, and groceries causing the most financial concerns.
When is the next age pension increase?
The pension receives a payment increase twice a year to accommodate changing inflation rates and wages. The indexation typically occurs on the 20th of March and September every year. So, pensioners can expect another payment increase by March 2025.
What is the retirement age in Australia?
The government has been gradually increasing the age of retirement. Currently, to be eligible to access the age pension, you need to be at least 67 years old. However, this age may differ if you were born before 1957.
