Centrelink payments to rise for millions of Australians
Centrelink payments are rising in days for over 4.7 million Australians – here’s how much you get
- Pensioner and benefit increase
- More than 4.7 million Australians benefit
More than 4.7 million Australians will receive a massive increase in their pension and benefits payments.
Single and disability pension recipients and caregivers will receive an additional $37.50 beginning March 20, bringing the biweekly rate to $1,064.
Couples get an additional $56.40, increasing the two-week payment to $1,604.
More than 4.7 million Australians will receive a huge boost to their pension and benefit payments (stock image)
JobSeeker and ABSTUDY payments will be increased by $24.70, bringing the two-week payment to $701.90 for single recipients over the age of 22 with no children.
Parental payments increase $33.90 to $967.90 every two weeks for single parents.
Commonwealth Rent Assistance is increased by $5.60 for singles, $6.58 for recipients with two children, and an additional $7.42 for families with three or more children.
The increase is part of the biennial indexation aimed at keeping pensions and allowances in line with inflation.
Pensions have risen twice as fast as wages after rising 4 percent in September and rising 3.7 percent this month.
Australian wages rose 3.3 percent last year, the fastest pace in a decade, but this was well below the inflation rate of 7.8 percent – the worst since 1990.
Social Services Minister Amanda Rishworth said it would go a long way in helping recipients.
“Indexing is a pillar of our social security system and we want more money in the pockets of ordinary Australians so they can afford better,” said Ms Rishworth.
“The Australian social security system is there to support our most vulnerable citizens, and we know they are struggling.”
It comes as mortgage holders brace for more pain as the Reserve Bank of Australia is likely to make its 10th rate hike this week.
The central bank is being tipped to raise another 25 basis points after comments last month suggested the bank was growing impatient with inflation now at 7.8 percent.
This would bring the cash rate from 3.35 percent to 3.6 percent when the board meets on Tuesday.
The increase in pensions and benefits comes as mortgage holders brace for more pain as the Reserve Bank of Australia is likely to make its 10th rate hike this week
Annual repayments are now typically $12,000 higher than they were in May 2022 after nine consecutive rate hikes.
The Commonwealth Bank, Australia’s largest mortgage lender, has raised its one-year fixed rate by no less than 40 basis points to 5.99 percent.
This increase means that a borrower with an average mortgage of $600,000 would pay $153 more per month in principal payments compared to a customer who signed a contract before the announcement.
The new monthly payment of $3,594 is also $1,400 or 63.8 percent higher than the $2,194 level, for an equivalent 30-year loan, in May 2021, when the major banks offered an average fixed rate of 1.92 percent .
NAB increased its variable rate for borrowers with mortgage deposits less than 20 percent by 0.2 percentage points to 6.44 percent.
For a borrower with an average mortgage of $600,000, this means an increase in monthly mortgage payments from $78 to $3,769.
The banks usually announce increases in their variable rates after the RBA raises interest rates on the first Tuesday of the month, but NAB did so less than a week in advance.