Over 2.4 million Australians set to receive an increase in their Centrelink benefits due to government's amendments to income thresholds.
Starting from July 1, 2025, approximately 2.4 million Australians receiving Centrelink payments will experience a 2.4% increase in their payments. This boost aims to help recipients keep up with inflation and the rising cost of living, covering essentials such as housing, healthcare, and utilities.
### Key Details of the Changes
Most Centrelink payments, including Family Tax Benefit A and B, Multiple Birth Allowance, and Newborn Supplement, will see a 2.4% increase. However, key payments like the Age Pension, JobSeeker, Disability Support Pension, Youth Allowance, and Carer Payment will not see changes to their payment rates but will benefit from adjusted thresholds and limits.
Income thresholds for Age Pensioners will be adjusted, allowing them to earn up to $218 per fortnight before their pension is affected, an increase of $6 per fortnight. The maximum income amount before the Age Pension cuts out will rise to $2,516 per fortnight. These changes help pensioners and others on fixed incomes to maintain eligibility and continue working or earning additional income without immediate loss of benefits.
Income and asset thresholds for Centrelink payments will also be raised by 2.4% to reflect inflation, providing more flexibility for recipients regarding how much they can earn or hold in assets and still qualify for payments.
While JobSeeker payment rates themselves remain unchanged, the indexation includes adjustments to income and asset limits which affect eligibility, helping recipients better manage rising living costs.
Social Services Minister Tanya Plibersek emphasized that the government’s primary goal with these increases is to address cost-of-living pressures and ensure that Centrelink recipients are not left behind financially amid inflation and economic challenges.
### Summary Table
| Aspect | Details | |------------------------------|-----------------------------------------------------------------| | Payment rate increase | 2.4% increase for most Centrelink payments (not Age Pension, JobSeeker, etc.) | | Income threshold adjustment | Age Pensioners can earn up to $218 per fortnight before their pension is affected | | Maximum income threshold | Maximum income amount before Age Pension cuts out will rise to $2,516 per fortnight | | Asset threshold adjustment | Income and asset thresholds for Centrelink payments will be raised by 2.4% | | JobSeeker income and asset limits adjustment | Adjustments to income and asset limits affecting eligibility | | Government priorities | Address cost-of-living pressures and ensure Centrelink recipients are not left behind financially |
In addition, the Paid Parental Leave scheme has been extended, allowing parents to access up to 24 weeks of government-funded leave, an increase from 20 weeks. The scheme will continue to expand, reaching 26 weeks in 2026.
For couples, the asset limit for the full Age Pension is $481,500, while single homeowners can now hold up to $321,500 in assets and still receive the full Age Pension. The income-free area for Centrelink payments has increased to $218 per fortnight for singles and $380 for couples.
Minister for Social Services Tanya Plibersek emphasized the importance of indexation, stating that millions of recipients of social security will see more money in their bank accounts. However, no new information regarding the cut-off point for receiving a part-pension was provided.
The standard indexation rate of 2.4% has been applied to Age Pension, JobSeeker, Parenting Payment, and Youth Allowance. The asset test threshold for losing access to the full Age Pension for single or couple homeowners remains unchanged.
In the adjustments to Centrelink payments, personal-finance aspects like the Family Tax Benefit A and B, Multiple Birth Allowance, and Newborn Supplement will experience a 2.4% increase, while the Age Pension and similar key payments will not see changes to their payment rates but will benefit from adjusted thresholds and limits. Business sectors like social services will also witness a rise in income and asset thresholds for Centrelink payments to provide more flexibility for recipients. To maintain eligibility and continue working or earning additional income without immediate loss of benefits, Age Pensioners can now earn up to $218 per fortnight before their pension is affected, with the maximum income amount before the Age Pension cuts out rising to $2,516 per fortnight.
