Major Centrelink changes coming for millions

Table of Contents

Increases are coming to around five million Australians on the Age Pension, Carer Payment, Commonwealth Rent Assistance, ABSTUDY, JobSeeker, Disability Support Pension, and Parenting Payment Single.

Whichever measure of inflation goes up the most - the consumer price index or the wage price index - will become the key indicator used to decide how much most Centrelink payments are increased.

The pensioner and beneficiary living cost index is also considered when making changes to pensions.

Indexed payments are worked out twice a year - in September and March - so new amounts can be expected next month.

CHANGES FOR JOBSEEKERS

From March, there will also be different rules and requirements for some people receiving Centrelink payments.

Fewer JobSeeker recipients will be cut off from Centrelink payments, with individuals who've just signed up to Workforce Australia or Disability Employment Services not facing penalties if it's their first time not meeting a requirement.

There will also be an exemption for job seekers who've worked 30 hours a fortnight for two months if they miss a meeting with their employment service provider.

“Our team will look into any compliance actions that fall within the 'penalty zone' before we can impose a financial penalty,” Services Australia said.

CHANGES FOR CARERS

Changes are on the way for people receiving a Carer Payment, with carers now able to work more flexible hours without it affecting their payment.

Instead of a 25-hour work week, carers will be able to work 100 hours over a four-week period under the new rules.

And those who work more than 100 hours will still be able to use their annual leave to maintain their pay.

“You'll still need to report your work hours every two weeks, but you won't have to include time for study, training, or travelling,” a statement from Services Australia said.

Where Payments Currently Sit

The government's payment figures for September 2024 saw a boost for single aged pensioners of $28.40 a fortnight, and twice that amount for couples.

Maximum pensions for singles reached $1144.40 a fortnight, making up an annual pension of around $28,000, according to calculations from the Combined Pensioners and Superannuants Association.

A couple in a de facto relationship could potentially earn a yearly combined pension of $44,900.

Single parents got a $19.80 boost to their payments, taking it to $1026.30 a fortnight, and JobSeeker increased by $15.30.

There was a 10 per cent increase to the highest amount of Commonwealth Rent Assistance, with inflation adjustments also applied on top.

This equated to an extra $23 a fortnight for singles and $27.02 a fortnight for families with up to two children.

At the time of the changes, Social Services Minister Amanda Rishworth said they were designed to help Aussies tackle cost-of-living pressures.

“Indexation, along with our budget measures, means the highest rates of Commonwealth Rent Assistance will have risen by about 45% since the Albanese Government came into office,” Ms Rishworth said in September.

“Indexation will give people getting allowance payments and pensions a timely cash injection, making sure those who need it most have more money for their daily living costs.”