The Australian government is introducing significant changes to Centrelink payments to help citizens manage the escalating cost of living. The Department of Social Services has unveiled the January 2025 Indexation, which will take effect on January 1, 2025.
These updates include increases in welfare payments and adjustments to the income test thresholds, aimed at supporting Australians affected by inflation. Let’s dive into the details of the changes and how they impact different groups of recipients.
Contents
- 1 Centrelink Payment Hike: Effective January 2025
- 2 Which Centrelink Payments Are Increasing?
- 3 Youth Allowance Payment Increase: Breakdown by Family Situation
- 4 Austudy Payment Adjustments
- 5 Disability Support Pension Adjustments
- 6 Miscellaneous Centrelink Payment Increases
- 7 Income Test Threshold Changes in 2025
- 8 FAQs
Centrelink Payment Hike: Effective January 2025
Starting January 1, 2025, millions of Australians will experience a substantial boost in their Centrelink payments. The government has emphasized its commitment to keeping welfare payments aligned with the rising cost of living, ensuring individuals and families can better afford essentials such as housing, food, and other daily expenses.
The adjustment is based on indices like the Consumer Price Index (CPI) and other metrics, ensuring that payments remain adequate for covering inflation-driven increases in goods and services.
Which Centrelink Payments Are Increasing?
As part of the January 2025 indexation, the following welfare payments will see increases:
- Youth Allowance
- Austudy
- Carer Allowance
- Disability Support Pension
- Various student and miscellaneous payments
Among these, students receiving Youth Allowance and Austudy are set to benefit the most, helping them manage higher education costs and living expenses, especially for those living away from home.
Youth Allowance Payment Increase: Breakdown by Family Situation
The Youth Allowance increase depends on the recipient’s family situation. Below is a detailed comparison of the current and new payment rates:
| Family Situation | Current Payment | New Payment (Jan 2025) |
|---|---|---|
| Single, under 18, living at home with parents | $395.30 | $410.30 |
| Single, under 18, living away from home | $639.00 | $663.30 |
| Single, 18 or over, living at home | $455.30 | $472.50 |
| Single, 18 or over, living away from home | $639.00 | $663.30 |
| Single with children | $806.00 | $836.60 |
| Partnered with no child | $639.00 | $663.30 |
| Partnered with children | $691.80 | $718.10 |
Special Circumstances Rates
Special cases such as disability or single parent status also have revised rates:
- Single, living at home: $535.50 → $555.80
- Partnered with no children: $691.80 → $718.10
- Single, living away from home: $754.60 → $783.30
Austudy Payment Adjustments
The Austudy payment will also see increases based on family circumstances. Here is a detailed table of changes:
| Family Situation | Current Payment | New Payment (Jan 2025) |
|---|---|---|
| Single with children | $806.00 | $836.60 |
| Partnered with children | $691.80 | $718.10 |
| Single | $639.00 | $663.30 |
| Partnered with no children | $639.00 | $663.30 |
Special Rates for Austudy
- Single with no children: $754.60 → $783.30
- Partnered with no children: $691.80 → $718.10
Disability Support Pension Adjustments
Recipients of the Disability Support Pension under 21 with no dependents will also see increases. The updated payment structure is outlined below:
| Family Situation | Current Payment | New Payment (Jan 2025) |
|---|---|---|
| Single, under 18, with a dependent | $548.80 | $569.60 |
| Single, under 18, with no dependent | $792.50 | $822.60 |
| Single, 18-20, with a dependent | $608.70 | $631.80 |
| Single, 18-20, with no dependent | $792.50 | $822.60 |
| Youth Disability Supplement | $153.50 | $159.30 |
| Couple | $792.50 | $822.60 |
Miscellaneous Centrelink Payment Increases
Other payments receiving increases include:
- Carer Allowance: From $153.50 to $159.30 (+$5.80)
- Additional Child Amount:
- Children under 13: $158.70
- Children 13–15: $220.80
- Single payment: $75.50
- Double Orphan Pension: From $77.00 to $79.70
- Mobility Allowance:
- Standard Rate: $120.30
- Enhanced Rate: $168.20
- ABSTUDY Living Allowance: Adjusted based on family situation and student age.
Pharmaceutical Allowance
This allowance remains unchanged:
- Singles: $6.80
- Couples (each): $3.40
- Illness-separated partners: $6.80
Income Test Threshold Changes in 2025
The income thresholds for payments are also increasing, extending eligibility to more Australians. Key updates include:
- Youth Allowance:
- Lower income threshold: $538.00
- Upper income threshold: $633.00
- Austudy: Mirrors Youth Allowance income thresholds.
- Disability Support Pension (under 21):
- Single & under-18 with a dependent: $1376.60
- Carer Payments:
- Income limit: $140,795
- Lower asset limit: $868,500
- Higher asset limit: $1,290,250
- JobSeeker Payment: Income thresholds remain unchanged, e.g., $1,583.50 for singles aged 55+.
FAQs
When will the new Centrelink payment rates take effect?
The revised rates will be effective from January 1, 2025.
Which groups benefit the most from the increases?
Students on Youth Allowance and Austudy, as well as individuals receiving the Disability Support Pension, are among the biggest beneficiaries.
Are pharmaceutical allowance rates changing?
No, the rates for pharmaceutical allowances remain the same as in previous years.
