Centrelink payments including Age Pension, Disability Support Pension and Carer Payment to increase under indexation from July 1

More than 2 million Australians will get a boost to their government payments as indexation takes effect from July 1.

Families and pensioners are designated as beneficiaries of the increase.

Around 1.3 million people in receipt of family payments – including Family Tax Benefit, Newborn Supplement and Multiple Birth Allowance – will see increases in their payments.

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Almost one million Australians on the Age Pension, Disability Support Pension and Carer Payment will also benefit from increases in income and asset thresholds.

Counting thresholds or the percentage set by the federal government used by Centrelink to predict how much money is earned from super and investments will also be indexed.

Paid parental leave will also increase with indexation, which coincides with the government’s pledge to pay pensions for paid parental leave from 2025 and extend the leave to 26 weeks by 2026.

It comes after the cost-of-living crisis was a major focus of last month’s budget, which included a $7.8 billion commitment to ease the cost of living, including a 10 per cent rise in rent assistance and retirement pension payments for paid parental leave.

The Government is committed to helping Australians overcome the stress of inflation and cost-of-living pressures, Social Services Minister Amanda Rishworth has said

“Indexation provides timely incentives for people receiving family payments and pensions,” Rishworth said.

“These increases will provide a direct boost to fortnightly payments for families.”

A family push

For families receiving Family Tax Benefit Part A, the maximum payment rate for children under 13 will increase by $8.68 to $222.04 per fortnight. If the children are aged 13 or over, the increase will be $11.34 to a maximum of $288.82 per fortnight.

For families receiving Family Tax Benefit Part B, the maximum rate of payment for a family with the youngest child under the age of five will increase by $7.42 to $188.86 per fortnight. Families with the youngest child aged five or over will see an increase of $5.18 to a maximum of $131.74 per fortnight.

The end-of-year supplements for Family Tax Benefit Part A and Family Tax Benefit Part B will increase by $36.50 to $916.15 and $18.25 to $448.95 respectively.

Those in receipt of Multiple Birth Allowance, Newborn Allowance, Stillbirth Payment and Essential Medical Equipment Payment will also receive increased payments.

The full list of payments increasing on 1 July 2024, including income and asset limits, can be found at Department of Social Services website.