As Australia grapples with rising living costs, the Australian government has announced a 2.4% increase in Centrelink payments effective from July 1, 2025, aimed at easing financial pressures for millions of recipients. This adjustment, part of the regular indexation process, ensures that social security payments keep pace with inflation, helping families, pensioners, carers, and job seekers manage essential expenses. With approximately 2.4 million Australians expected to benefit, this article explores the details of the payment increases, who is eligible, how the changes affect various payment types, and what recipients can do to maximize their benefits. We’ll also address criticisms and provide practical advice for navigating the updated system.
Understanding Centrelink Payment Indexation
Centrelink payments are adjusted biannually, typically in March and September, based on the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI). These indices measure inflation and the specific cost-of-living pressures faced by social security recipients. The July 1, 2025, increase of 2.4% reflects the government’s commitment to maintaining the purchasing power of welfare payments amid rising costs for essentials like housing, food, and utilities. Social Services Minister Tanya Plibersek emphasized, “From 1 July, millions of recipients of social security payments will see more money in their bank accounts,” highlighting the government’s focus on addressing cost-of-living challenges.
The indexation applies to a range of payments, including Family Tax Benefit, Parental Leave Pay, JobSeeker, Youth Allowance, Austudy, ABSTUDY, and income and asset thresholds for pensions like the Age Pension, Disability Support Pension, and Carer Payment. While the increase is modest, it provides critical relief for low- and middle-income households, particularly those navigating economic uncertainty.
Who Benefits from the July 2025 Increase?
Approximately 2.4 million Australians will see higher payments starting July 1, 2025. The increase targets several key groups:
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Families: Parents receiving Family Tax Benefit (FTB) Part A and Part B, as well as the Multiple Birth Allowance and Newborn Supplement, will benefit from higher rates.
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Pensioners: While base rates for the Age Pension, Disability Support Pension, and Carer Payment remain unchanged, income and asset thresholds are increasing, potentially allowing more people to qualify for full or partial pensions.
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Job Seekers and Students: Recipients of JobSeeker, Youth Allowance, Austudy, and ABSTUDY will see modest boosts to their payments.
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Parents on Leave: Those receiving Parental Leave Pay will benefit from higher income limits, making the scheme accessible to more working parents.
For example, single Age Pensioners can now earn up to $218 per fortnight (up $6) and still receive the full pension, while couples can earn $380 (up $8). The disqualifying income limit for JobSeeker recipients has also risen to $2,516 per fortnight for singles and $3,844.40 for couples.
Key Payment Changes
Below is a detailed breakdown of the major changes effective from July 1, 2025:
Family Tax Benefit (FTB)
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FTB Part A: The maximum rate for children under 13 increases to $227.36 per fortnight, while for children aged 13–19, it rises to $295.82.
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FTB Part B: The maximum rate increases to $193.34, with families whose youngest child is five or older receiving up to $134.96 per fortnight.
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Multiple Birth Allowance: For triplets, the payment rises to $196.56 per fortnight; for quadruplets or more, it increases to $261.94.
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Newborn Supplement: Eligible families will see a slight increase, though exact figures depend on individual circumstances.
Parental Leave Pay
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The income limit for individuals rises to $180,007 annually, and for families, it increases to $373,094, expanding eligibility for working parents.
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From July 1, 2025, Parental Leave Pay extends to 120 days (24 weeks) for children born or adopted, with an additional 12% superannuation contribution paid directly to recipients’ super funds.
Pension Thresholds
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Age Pension: Single homeowners can have assets up to $321,500 (up from previous limits) and still receive the full pension, while couples can have $481,500. The cut-off for partial pensions rises to $704,500 for singles and $1,059,000 for couples.
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Deeming Rates: From July 1, deeming thresholds increase, with singles’ assets below $62,600 (up from $60,400) deemed at 0.25%, and couples’ assets below $103,800 (up from $100,200). This may affect pensioners with significant investments.
JobSeeker, Youth Allowance, and Austudy
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While base rates for these payments are not increasing in July, income thresholds are adjusted, potentially allowing more recipients to qualify for partial payments. For example, single parents on Parenting Payment see their income-free area rise by $4 to $224.60 per fortnight.
Additional Support
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A one-time $250 pension boost, including an enhanced Age Pension supplement, will be added to July payments for eligible pensioners, providing extra support for medical and utility costs.
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Commonwealth Rent Assistance thresholds are also increasing, offering relief for renters facing housing affordability challenges.
Impact on Recipients
The 2.4% increase, while modest, provides tangible relief. For families, the boosted FTB rates mean an extra $227.36 per fortnight for younger children, translating to roughly $5,900 ව
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Starting July 1, 2025, around 2.4 million Australians will see a 2.4% increase in Centrelink payments, aimed at easing cost-of-living pressures. This indexation, tied to the Consumer Price Index (CPI) and Pensioner and Beneficiary Living Cost Index (PBLCI), adjusts payments to maintain purchasing power amid inflation. Social Services Minister Tanya Plibersek stated, “From 1 July, millions of recipients of social security payments will see more money in their bank accounts”. The increase affects Family Tax Benefit, Parental Leave Pay, JobSeeker, Youth Allowance, Austudy, and pension thresholds, with a one-time $250 Age Pension boost.
Key Changes:
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Family Tax Benefit (FTB): FTB Part A rises to $227.36 for kids under 13 and $295.82 for teens. FTB Part B increases to $193.34.
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Parental Leave Pay: Income limits rise to $180,007 (individual) and $373,094 (family), with 24 weeks of leave and 12% superannuation contributions.
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Pension Thresholds: Single homeowners can have $321,500 in assets for full Age Pension; couples, $481,500. Partial pension cut-offs are $704,500 (singles) and $1,059,000 (couples).
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JobSeeker/Students: Income thresholds increase, but base rates remain unchanged.
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Rent Assistance: Thresholds rise, aiding renters.
Impact: The increase adds modest relief, like $5–$6 extra per fortnight for FTB, though some, like pensioners, criticize it as insufficient compared to rising costs. A $250 pension boost in July helps with medical and utility expenses.
What to Do: Check your myGov account to ensure details are updated and review eligibility on the Services Australia website to avoid payment delays.
|
Payment Type |
Key Change (July 2025) |
Impact |
|---|---|---|
|
Family Tax Benefit Part A |
$227.36 (under 13), $295.82 (13–19) per fortnight |
Supports child-rearing costs |
|
Family Tax Benefit Part B |
$193.34 per fortnight |
Aids families with young kids |
|
Parental Leave Pay |
24 weeks, income limit $180,007/$373,094 |
Expands access for parents |
|
Age Pension Threshold |
Assets: $321,500 (single), $481,500 (couple) |
More qualify for full pension |
|
JobSeeker/Youth Allowance |
Income threshold up to $2,516 (single) |
May increase eligibility |
The increase reflects the government’s effort to support vulnerable Australians, but critics argue it falls short of addressing the full cost-of-living crisis.
