Social Security Payments Increased to Combat Inflation

The Albanese government said millions of Australians were set for a financial boost from the indexation rises.

People queue outside an Australian government welfare centre, Centrelink, in Melbourne, Australia, on March 23, 2020. William West/AFP via Getty Images

Australians on social security benefits, including unemployment, will receive a minor boost on March 20 to counteract inflation.

Pensioners, job seekers, parents, and students on government payments will receive a slight increase as part of the latest round of indexation linked to the Consumer Price Index and wages.

From March 20, a single person over 22 without children will receive a JobSeeker payment of $789.90, including the energy supplement, up $3.10 per fortnight.

The taxpayer-funded payments provide a safety net for many Australians including pensioners, carers, and those with a disability.

Single parents on welfare will receive an extra $4, taking their fortnightly taxpayer-funded allowance to $1030.30, including a number of supplements.

Pensioners on the single maximum rate, along with those on disability support or carer payment, will receive a $4.60 boost to a total of $1,149 per fortnight including supplements.

Meanwhile, partnered pensioners will receive a boost of $3.50 per fortnight extra each, or $7 per couple, increasing the combined payment to $1,732.20.

Couples on JobSeeker, Abstudy or partnered parental payment will each receive a rise of $2.80 per fortnight, providing them with a maximum rate of $723 each, including the energy supplement.

Australians receiving JobSeeker or other payments can work a little but their rate of pay from the government declines as their income increases.

The Albanese Labor government said “millions of Australians” were set for a financial boost from the indexation rises.

Social Services Minister Amanda Rishworth said the Labor government was determined to help Australians with cost of living pressures.

“We’ve spent the past three years strengthening our social security system, so that it helps Australians at whatever age or stage they’re at in life,” she said.

“Indexation is a critical part of our social security safety net. For pensioners and other payment recipients receiving this financial boost, this will help ease some pressure.”

The government said the latest indexation increases are in addition to the $11.5 billion it spent on Australia’s social welfare in the 2023 and 2024 budgets.

Including the March 20 increases, Rishworth said the single pension rate has increased by $3,913 per year due to the government passing on indexation in the last three years. Combined, pensioners pocket $5,902 more per year.

 “In addition, changes to Commonwealth Rent Assistance, alongside indexation, have provided a boost of between $44.13 and $87.92 per fortnight for around one million households on the maximum rate—marking a rise of more than 45 percent since Labor took office,” the Labor government said.

“Labor’s increases to Commonwealth Rent Assistance, combined with indexation, have also resulted in around one million Australian households receiving between $44.13 and $87.92 more per fortnight for those on the maximum rate, depending on their individual circumstances.

That’s an increase of more than 45 percent since we first came to government”

Poverty Advocacy Group Call for More Support

The Australian Council of Social Service (ACOSS) raised concerns that the increases would not cover electricity and medication.

ACOSS said people were already depriving themselves of essentials to get by on $56 a day, including going without fresh fruit and vegetables among other sacrifices.

“On 20 March, JobSeeker will rise by $1.55 a week, or just 22 cents per day as part of routine indexation,” ACOSS said.

The advocacy group is calling on the government to “raise the rate” permanently.

Dutton Would Bring Back Cashless Debit Card

If elected to government, Opposition Leader Peter Dutton has promised to bring back the cashless debit card for welfare recipients in certain communities.

The previous Coalition government introduced this card in communities, including Ceduna, East Kimberley, Goldfields, Cape York, Bundaberg, and Hervey Bay, requiring 80 percent of payments to go towards essential services via a card.

“And in Indigenous communities where drugs and alcohol are prevalent, we will reintroduce the Cashless Debit Card for working-aged welfare recipients in consultation with communities, to make sure children are getting the support from their parents that they deserve,” Dutton said at a Coalition campaign rally in January.

 In a separate interview, Dutton said he strongly believes in the dignity that comes with work.

“It’s not just for paid employment, that obviously helps the worker and his or her family. It’s also the dignity that comes with turning up to work,” he said.

Shadow Finance Minister Jane Hume also said on March 10 that if elected, the Coalition will aim to improve housing, cost of living, and energy prices.

“We’ve developed the policies, and we will go to this election with a suite of policies that will deal with what’s important to everyday Australians, and that is tackling the cost of living, making sure that we bring down energy prices, making sure that we deliver quality health care, that we bring affordable homes back into the realm of possibility for young Australians,” she said.