Major Centrelink boost coming for over one million Australians – what you need to know

More than a million Australians are getting a Centrelink boost from tomorrow.

Australia’s youngest Centrelink recipients are getting a 3.8 per cent increase to their payments on January 1, with the indexation significantly higher than the latest 2.8 per cent consumer price index.

The Youth Allowance for teenagers under 18 living at home is going up by $15 to $410.30 a fortnight – in line with the Abstudy rate for those of the same age.

Those living away from home and who are studying, aged 18 to 24, will see their Youth Allowance or Austudy payment rise by $24.30 to $663.30.

Partnered Youth Allowance beneficiaries without dependent children are also getting a $24.30 boost, that rises to $670.30 a fortnight with the energy supplement. 

The Youth Allowance covers those aged 16 to 21 and looking for full-time work, those aged 18 to 24 studying full-time and those aged 16 to 24 doing an apprenticeship.

The Disability Support Pension for those under 18 living at home is rising by $20.80 to $569.60. 

Those aged 18 to 20 are getting a $23.10 boost, taking it to $631.80.

Social Services Minister Amanda Rishworth said the indexation formula was designed to help Centrelink recipients deal with the cost of living

Australians with a disability living independently will see their payments rise by $30.10 a fortnight to $822.60.

The Carer Allowance is increasing by $5.80 a fortnight to $159.30, benefitting more than 600,000 people looking after a loved one.

The 3.8 per cent boost is a lot more generous than recent inflation figures – the September quarter’s annual headline inflation rate was 2.8 per cent based on temporary $300 electricity rebates from the federal government, while the underlying inflation rate was higher at 3.5 per cent without one-off factors.

Welfare payments are linked to the June quarter’s annual consumer price index instead of the latest inflation data.

Social Services Minister Amanda Rishworth said the indexation formula was designed to help Centrelink recipients deal with the cost of living.

‘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.’