Centrelink payment increase 2025 : Updated Pay Rates
Australian welfare recipients have received a 3.8% increase in Centrelink payments starting January 1, 2025, benefiting over one million Australians. Additionally, a second increase is expected in March 2025 due to routine indexation. These adjustments aim to support vulnerable individuals and families amidst rising living costs.
Highlights
✔ Over 1 million Aussies on welfare saw a payment boost from January 1, 2025
✔ Another round of payment increases coming in March 2025 for pensioners and jobseekers
✔ Youth Allowance, Abstudy, Austudy, and Carer Allowance payments increased in January 2025
✔ Indexation-based rise provides relief amid inflation and financial pressures
✔ Advocacy groups demand further increases to meet rising living costs
Youth Allowance and Austudy Increases
Young Australians receiving Youth Allowance have seen an increase in their fortnightly payments:
- Single recipients over 18 living at home now receive an extra $17.30, bringing their total to $472.50 per fortnight.
- Those living away from home saw a $24.30 boost, reaching $670.30 per fortnight.
- Recipients with children gained an additional $30.60, bringing their total to $845.80 per fortnight.
Austudy recipients also benefited from increased Centrelink payments:
- Those without children now receive $670.30 per fortnight.
- Recipients with children can expect $845.80 per fortnight.
ABSTUDY recipients pursuing a Master’s or PhD now receive an extra $54 per fortnight, ensuring better financial support for higher education.
Carer Allowance Boost
Australians caring for loved ones also received a rise in Centrelink payments:
- Carer Allowance recipients now receive an extra $5.80 per fortnight, bringing their total to $159.30.
These adjustments acknowledge the important role of carers in the community while helping offset financial pressures. The 2025 welfare increases reaffirm the government’s commitment to supporting vulnerable Australians by ensuring payments keep pace with rising living costs.
Upcoming March 2025 Centrelink Payment Increases
Beyond the January 2025 increases, another round of Centrelink payment adjustments will take effect on March 20, 2025. This biannual indexation will increase payments for pensioners, jobseekers, and rent assistance recipients.
✔ Age Pension, Disability Support Pension, and Carer Payment will see increases in March.
✔ JobSeeker Payment and Rent Assistance are also set for a boost.
✔ The exact increase amounts will be announced in early March 2025.
These changes ensure social security payments keep up with inflation, benefiting millions of Australians struggling with the cost of living.
Centrelink Payment Increase: Indexation and Inflation
As part of automatic indexation, Centrelink payments increased in January 2025, and another adjustment is expected in March 2025:
Youth Allowance and Austudy recipients received the following increases:
- Single recipients with no children: $17.30 more, bringing their total to $472.50 per fortnight.
- Those with dependent children: $30.60 more, bringing their total to $845.80 per fortnight.
- Partnered recipients without children: $24.30 more in their fortnightly payments.
These increases help young Australians manage their expenses better.
Social Security Payments Increase
Carers also received a boost in their payments. Over 600,000 carers now receive an extra $5.80 in their Carer Allowance, bringing their total to $159.30 per fortnight.
| Payment Type | Recipient Category | Increase Amount (per fortnight) |
|---|---|---|
| Youth Allowance | Single, no children | $17.30 |
| Youth Allowance | Single, with dependent children | $30.60 |
| Youth Allowance | Partnered, no children | $24.30 |
| Austudy | Single or partnered, no children | $24.30 |
| Carer Allowance | All recipients | $5.80 |
Not all welfare payments increased on January 1, 2025. Some, such as Rent Assistance, are adjusted in March and September. These indexation adjustments help Centrelink recipients maintain their standard of living, ensuring payments reflect inflation.
Eligibility Changes and Income Tests
From January 1, 2025, Centrelink payments saw eligibility and income test adjustments to provide better support while encouraging workforce participation.
Expanded Eligibility for Household Concessions in South Australia
South Australia removed the co-resident income assessment for cost-of-living concessions, expanding access to more low-income Australians, including:
✔ Low-income households
✔ Families with dependent children
✔ Pensioners and retirees
✔ Individuals with disabilities
Updated Income Tests for Maximum Payments
Centrelink has adjusted income thresholds to allow recipients to earn more while still receiving maximum payments:
| Payment Type | Lower Income Threshold | Upper Income Threshold |
|---|---|---|
| Youth Allowance | $538.00 | $633.00 |
| Austudy | $538.00 | $633.00 |
| Disability Support Pension (under 21, single with dependent) | $1,376.60 | – |
| Carer Payment | $140,795 | – |
These changes help Australians remain financially stable while seeking employment.
Other Notable Changes Effective January 1, 2025
✔ PBS medicine prices frozen for the next five years (extra four years for concession holders).
✔ Passport fees increased: A 10-year adult passport now costs $412 (previously $398).
✔ New Vehicle Efficiency Standard started, limiting new car pollution.
✔ Aged care workers received a pay rise of 3% to 13%.
✔ Plastic utensils ban started in New South Wales, with more states to follow.
FAQ
What Centrelink payments increased in 2025?
Payments that increased on January 1, 2025 include:
✔ Youth Allowance, Austudy, Abstudy, and Carer Allowance.
✔ Another increase is expected in March 2025 for pensioners and jobseekers.
How much will Youth Allowance payments increase?
- Single, over 18, living at home: Increased by $17.30 to $472.50 per fortnight.
- Living away from home: Increased by $24.30 to $670.30 per fortnight.
- With children: Increased by $30.60 to $845.80 per fortnight.
How much extra will Carer Allowance recipients receive?
Carer Allowance recipients now get an extra $5.80 per fortnight, bringing their total to $159.30 per fortnight.
With another indexation update coming in March 2025, Australians should stay informed about their entitlements. For official payment rates, visit Services Australia.