Cash boost for millions of Aussies within weeks to help with cost of living

A cash boost is in store for more than a million Aussies as indexation is adjusted to Centrelink payments to keep them in line with cost of living.

Those who receive Youth Allowance, Austudy, ABSTUDY or the Carer’s Allowance are some of the Aussies who will see a slight rise in their fortnightly welfare payments from January 1.

Youth Allowance payments increase between $17.30 to $24.30, up to a maximum rate of $670.30, The Australian reported.

Students living at home on the Youth Allowance will get an extra $17.30 a fortnight, changing their payment from $459.80 to $477.10.

For singles and couples on Youth Allowance who are living away from home, they  will get an extra boost to $670.30 instead of $646.

But the parental income test threshold for Youth Allowance will increase to $65,189 a year.

For students receiving Austudy payments, they will get an increase between $24.30 to $26.30 a fortnight.

Single recipients with dependent children will get the biggest increase to $845.80 a fortnight – up from $815.20, which is an extra $30.60. 

The government indexes the payments so Aussies can cope with cost of living increases (stock image)

Recipients with partners will get $26.30 more, bringing their payment to $725.80. 

Students on Austudy who have no dependent children will receive $670.30 a fortnight.

Aussies receiving ABSTUDY are also set to benefit if they are doing a Master’s degree or a PhD – gaining an extra $54 a fortnight to $1231.40.

This will be the biggest increase in the indexation set to take place.

Aboriginal secondary and tertiary students who receive ABSTUDY will see an increase  between $24.30 to $30.60, with the maximum increasing to $845.80 for single recipients with dependent children. 

More than 600,000 Aussies who receive the Carer’s Allowance will only get a $5.80 increase, taking the new total to $159.30 a fortnight.

Students are set to benefit from the January 1 indexation with increases to Austudy and ABSTUDY for tertiary and secondary students (stock image)

Also set to increase are the Mobility Allowance, Youth Disability Support Pension and the Double Orphan Pension for carers of a child or children who has lost both parents.

The indexation happens every year in January to adjust payments with inflation. 

JobSeeker, Commonwealth Rental assistance and the age pensions aren’t included as they are indexed separately in March and September each year.

Social Services Minister Amanda Rishworth hopes the cash boost will help struggling Aussies cope better with cost of living changes’

‘We want to reduce disadvantage and maintain Australia’s strong and sustainable social safety net by providing relief to those most in need,’ she said. 

‘Through indexation, payments are adjusted in line with cost of living changes to ensure people have more money in their pockets.’

However, welfare experts say it isn’t enough and have pointed out that many Aussies will remain below the poverty line. 

‘Every dollar helps when you’re living in poverty – but we’ve now got students all over the country who routinely can not feed themselves,’ Australian Council of Social Service chief executive Cassandra Goldie told Nine News.

‘You’ve already had to spend the dollars as you’re trying to cover the essentials of life.’  

The January indexation is further good news for students, after Prime Minister Anthony Albanese vowed to wipe $3 billion worth of student debt for three million Aussies

 The cost of the indexation increases will be about $63.8 million a year and are measured against the Consumer Price Index, which rose by 3.8 per cent in the 2023-24 financial year.