In view of rising inflation and the cost of the Australian government has taken a relief step. From March 20, 2025, many payments of Centrelink are going to increase, which will directly benefit more than 5 million Australians.
This change is called “Indexation”. Let us understand this term in simple language and know who will benefit and how much this increase will benefit.
What is indexation and why is it necessary?
Indexation is a government process in which social security payments are rechecked and updated every 6 months (March and September). Its main objective is that if inflation is increasing in the country or there is a change in the income of the people, then government payments should also increase accordingly so that the purchasing power of the people remains intact.
In simple words, the government ensures that pensioners, unemployed people and people receiving other social assistance continue to meet their basic needs and are not affected too much by inflation.
How much increase has happened in which payments?
The table below details the increases to different types of Centrelink payments:
- Age Pension (single)
Previous fortnightly amount: $1,144.40
Increase: $4.60
New amount (per fortnight): $1,149.00 - Age Pension (per member in a couple)
Previous fortnightly amount: $862.60
Increase: $3.50
New amount (per fortnight): $866.10 - JobSeeker (single, no child)
Previous fortnightly amount: $786.80
Increase: $3.10
New amount (per fortnight): $789.90 - JobSeeker (single, with child)
Previous fortnightly amount: $816.60
Increase: $3.30
New amount (per fortnight): $819.90 - JobSeeker (couple)
Previous fortnightly amount: $712.30
Increase: $2.80
New amount (per fortnight): $715.10 - Parenting Payment (single)
Previous fortnightly amount: $1,026.30
Increase: $4.00
New amount (per fortnight): $1,030.30 - Parenting Payment (couple)
Previous fortnightly amount: $698.30
Increase: $2.80
New amount (per fortnight): $701.10 - Commonwealth Rent Assistance (single, no children)
Previous fortnightly amount: $211.20
Increase: $0.80
New amount (per fortnight): $212.00 - Commonwealth Rent Assistance (couple)
Previous fortnightly amount: $199.00
Increase: $0.80
New amount (per fortnight): $199.80 - Commonwealth Rent Assistance (person sharing)
Previous fortnightly amount: $140.80
Increase: $0.53
New amount (per fortnight): $141.33
Who will benefit from this change?
Now let’s understand who will be affected by this increase:
1. Pensioners (people receiving Age Pension)
- If you live alone and are receiving Age Pension, then your annual income will increase by $119.60.
- If you are part of a couple and both receive pension, then there will be an annual increase of $182.00.
2. JobSeekers
- People who are single and do not have children will get $80.60 more per year.
- If a person is single and has children, he will get $85.80 more per year.
- Jobs who are JobSeeker couples will get an annual benefit of $72.80.
3. Parents (receivers receiving Parenting Payment)
- Single parents will get additional support of $104.00 per year.
- Parents living in a partnership will get an annual benefit of $72.80.
4. People living on rent (Commonwealth Rent Assistance)
- If you live alone and receive rent assistance without children, you will get $20.80 more per year.
What does the government say about this change?
Social Services Minister Amanda Rishworth has said that this change is an important part of Australia’s social security system. Through processes such as indexation, the government ensures that those who need it the most receive adequate financial support on time.
Read more: OAS $1,546 March 2025 Deposit – Complete Guide to Eligibility and Dates
The government has spent an additional $11.5 billion in the last two federal budgets to strengthen social security.
Other assistance provided by the government
Apart from Centrelink payments, the government also provides many other assistance, including:
- Energy Supplement: Which helps in electricity and gas bills.
- Concession Cards: Which reduces the cost of medicines, medical services and travel.
- Child Care Subsidy: Which provides relief in the cost of child care.
Understand with an example – how to get direct benefit
Mrs Anderson is a 70-year-old woman who lives alone. She receives both Age Pension and Rent Assistance.
- Earlier she used to get $1,144.40 + $211.20 = $1,355.60 every fortnight.
- Now they will get $1,149.00 + $212.00 = $1,361.00.
- That is, a total of $5.40 per Fortnite and an additional benefit of about $140.40 annually.
Frequently Asked Questions (FAQs)
Q1: What is indexation?
Ans: It is a process in which the government increases Centrelink and other payments every six months according to inflation and income so that people’s purchasing power is maintained.
Q2: When will the new payments come into effect?
Ans: All new rates will come into effect from 20 March 2025.
Q3: Do I have to do anything to get this increased amount?
Ans: No. Those who are eligible will get this increased amount automatically in their account. You do not have to apply separately.
Q4: How will I know if my payment has increased or not?
Ans: You can check the latest payment details by logging into your MyGov or Centrelink account. If there is any change, it will be visible there.
Conclusion
This increase in Centrelink payments from March 2025 is like a sigh of relief for millions of Australian citizens. Be it the elderly, young people looking for jobs, parents or people living on rent – everyone will definitely get some relief.
This move of the government shows that it is serious about tackling inflation and helping the common people.
If you also receive any payment from Centrelink, keep your account updated, check notifications and keep getting information by logging in to MyGov from time to time.
