Centrelink payments set to increase for millions of Australians

Centrelink payments will be given their biggest increase in 30 years to help recipients cope with the rising cost of living.

Jobseeker recipients aged over 22 and who do not have children will get another $25.70 a fortnight, while couples will be given an extra $23.40.

The Parenting Payment will also increase, with singles receiving $35.20 more a fortnight and couples $23.40.

It marks the most significant increase for allowances in three decades, with pensions also set to get their largest boost to indexation in 12 years.

The Age and Disability Support Pensions and Carer Payment will increase drastically with singles receiving $38.90 more a fortnight and couples $58.80. 

The maximum rate of a pension will increase with singles receiving $1,026.50 a fortnight and couples getting $1,547.60. 

Treasurer Jim Chalmers said the increases were crucial to ease cost of living pressures.

‘That’s why they’re indexed twice a year, and every little bit helps,’ he said.

‘This indexation will be particularly big this month, because inflation is particularly challenging.’

Mr Chalmers admitted that ‘times will still be tough’ for a lot of people.

‘And we know that it won’t solve every problem for everybody, but it’s important that we try and make sure that those payments keep up,’ he said. 

‘That’s what the indexation is about. It will be welcome even as we acknowledge that times will still be tough for a lot of people.’ 

Australian Council of Social Service acting chief executive Edwina MacDonald said more money was needed to help recipients.

‘It’s really just a drop in the ocean at this point and as the non-discretionary inflation is higher than the CPI, they are still going backwards in terms of what they can afford to buy at the moment,’ she said.

‘So, currently jobseeker is at $46 a day, youth allowance is at $38 a day and what we need in order to bring it up to the poverty line, is to bring it up to at least $70 a day.’ 

The increase comes with cost of living set to increase further when the temporary fuel excise freeze ends on September 29.

Mr Chalmers has ruled out extending the tax cut that was introduced by former prime minister Scott Morrison.

‘It would be too expensive to continue that petrol price relief indefinitely,’ he said.

‘I think Australians understand that we’ve inherited a budget which is heaving with a trillion dollars in Liberal Party debt and that means some difficult decisions including this one.’