Social security benefits for almost 2.4 million Australian households and retirees will soon get a boost.
Changes to the quarterly indexation of income thresholds will come into effect from July 1, to ensure government support keeps pace with inflation.
Extensions to the current income and asset limits mean that payments will increase for five schemes, including the Family Tax Allowance (both Parts A and B), the Multiple Birth Allowance, the Newborn Supplement, the Stillborn Baby Payment and the Essential Medical Payment equipment.
For families with children under age 13 who are covered by the Part A family tax credit, the maximum biweekly payments will increase to $222.04, or an increase of $8.68.
Quarterly indexation changes to income thresholds will increase social security benefits for almost 2.4 million Australian households and retirees
Households with children over 13 could get a maximum biweekly payment of $288.82 – an increase from $11.34
Households with children over 13 could receive a maximum fortnightly benefit of $288.82 – an increase from $11.34.
The Part A family tax credit surcharge will also increase by $36.50 to $916.15, and by $18.25 to $448.95 for households paying the Part B family tax credit.
Indexation changes will also increase the income thresholds for people on parental leave benefits.
Income eligibility requirements are also extended for people on Single Parenting Benefit, Old Age Pension, Disability Pension and Care Benefit.
Asset limits for people on Jobseeker’s Allowance, Special Allowances, ABSTUDY, Austudy, Youth Allowance and Parenting Benefits will also be increased.
The 2024-2025 budget also announced that interest rates, which calculate income from investments and determine whether someone has access to payments, will remain at 2022 levels for another year.
According to budget documents, 876,000 income support recipients, including 450,000 pensioners, would benefit from the decision.
Social Services Minister Amanda Rishworth said the indexation changes would provide “timely boosts” for people receiving the benefits and pensions.
“These increases will provide an immediate boost to biweekly payments for families,” she said.
The quarterly indexation changes are calculated based on changes in the Consumer Price Index.
The latest figures show that inflation rose by 3.6 percent in the 12 months to the March 2024 quarter, with the biggest increases seen in tertiary and secondary education (6.5 percent and 6.1 percent respectively). percent), medical and hospital services (2.3 percent). ), and renting (2.1 percent).
