Millions of Australians are set to see their welfare payments rise this month including those on the age pension and JobSeeker. With inflation still remaining high and Australians still feeling the pinch of the cost of living crisis, Centrelink payments will be increasing in line with indexation. 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 to help curb cost of living pressures. In line with indexation, as of September 2024, the age pension is increasing by $28.10 a fortnight for singles with the maximum rate rising to $1,114.40 a fortnight. The new rates will also see couples get a $21.20 a fortnight increase, meaning they will receive $862.60 each per fortnight, or $1,725.20 total.
“This Government recognises that many Australians continue to be directly affected by cost of living pressures,” Minister for Social Services Amanda Rishworth said after announcing the payment increases.
“This indexation will deliver timely boosts to people receiving allowance payments and pensions, ensuring that these vulnerable cohorts have more money in their pockets for everyday expenses.”
The payment increase comes as inflation and consumer price index (CPI) remain stubbornly high, however, there have been calls from independent bodies that despite increasing, these payments are still not enough for Australians to stay on top of cost of living pressures. The Australian Council of Social Service (ACOSS) voiced concerns that the payment increases were not enough to help people cover the costs of basics.
“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 their social media.
The Council on the Ageing (COTA) recently 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 being the most cumbersome 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 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, if you were born before 1957, this age may slightly differ.
