Australian Government’s Increased Welfare Payments to Surpass Budget Forecasts

'Reserve Bank has foot on the brake, while government has the foot on the accelerator,' says shadow treasurer

Australian Treasurer Jim Chalmers speaks to the media during a doorstop at Parliament House in Canberra, Australia, on May 9, 2023. AAP Image/Lukas Coch

The Australian federal government’s welfare spending is expected to exceed the rates outlined in the budget forecasts as it will be driven higher by top-ups to keep up with inflation.

According to the budget paper from September, the centre-left Labor government will increase the rate of income support welfare payments—including JobSeeker Payment, Austudy, and Youth Allowance—by A$40 (US$33.26) per fortnight, or $2.86 per day.