Massive cash boost for millions of Aussies – here’s who’s eligible
Nearly a million Australians have received a New Year's gift with an increase in benefits from January 1.
More than 936,000 people who receive youth, student or informal care support will receive an increase of 6 percent at the start of the new year as a result of the indexation.
Routine indexation of payments takes place annually in January to keep pace with inflation, although the increase is more generous than the last inflation figure.
Inflation in Australia fell to 5.4 percent year-on-year in the third quarter of 2023, and in October the monthly inflation rate was 4.9 percent.
Social Services Minister Amanda Rishworth said the increases would help people receiving social benefits who are putting pressure on the cost of living.
Nearly a million Australians have received a New Year's gift with an increase in welfare payments from January 1. Two women are pictured on Bondi Beach in Sydney
“Australia's social security system is a safety net that is continually being strengthened and improved to support all vulnerable Australians,” she said.
'Through regular indexation, our benefits are adjusted to changes in the cost of living in order to maintain their purchasing power.'
Youth allowance payments will increase by $22.40 and $25.80 per fortnight for single people under the age of 18 and people living at home over the age of 18, respectively.
Those living away from home will receive an additional $36.20 per fortnight.
The youth allowance covers those aged between 16 and 21 who are looking for full-time work, those aged between 18 and 24 who are studying full-time and those aged between 16 and 24 who are undertaking an internship.
Recipients with a partner and children will receive $39.20 more per fortnight, while anyone in a relationship without children will receive $36.20 more.
Those using Austudy will also get a boost of between $36.20 and $45.60 every fortnight.
People under 21 who receive a disability pension will see an increase from $31.10 to $44.90.
More than 600,000 carers will benefit if the carer's allowance rises to $153.50 per fortnight.
The rates for ABSTUDY, assistance for isolated children, mobility allowance, double orphan's pension and medicine reimbursement will also increase.
The reason the payment increases are higher than the latest inflation figures is because some social benefits are linked to the annual consumer price index of the June quarter.
That has since fallen after the Reserve Bank raised interest rates for the thirteenth time in eighteen months in November.
The youth allowance covers those aged between 16 and 21 who are looking for full-time work, those aged between 18 and 24 who are studying full-time and those aged between 16 and 24 who are undertaking an internship. Two women are depicted in a cafe