Increasing Funds in Bank Accounts

Changes to Centrelink Payments from July 1: What You Need to Know

From July 1, over 2.4 million Australians receiving Centrelink benefits will experience a small uplift in their payments as part of the government’s regular indexation. This initiative aims to address the ongoing pressures of the rising cost of living.

Payment Increases

The government’s latest indexation means that centred around 2.4 million recipients will benefit from a 2.4 per cent increase in various payments, thresholds, and limits. This adjustment impacts several social security payments, including:

• Family Tax Benefits:

  • Part A: Maximum fortnightly payments will rise to $227.36 (up by $5.32).
  • For families with children aged 13 and over, the payment will increase to $295.82 (up by $7).
  • Part B: The maximum rate will increase to $193.34 (up by $4.48), with families of children over five seeing their payment rise to $134.96.

• Newborn Supplement: First-time parents will benefit, as the supplement will increase by $48 over 13 weeks to a new total of $2,052.05.

• Multiple Birth Allowance: Support for families of triplets will increase to $196.56 per fortnight, with payments for quadruplets or more increasing to $261.94 per fortnight.

While the latest round of indexation affects numerous family benefits, it does not change the rates for the Age Pension, JobSeeker, Youth Allowance, Disability Support Pension, or Carer Payment. However, there will be adjustments in income and asset threshold limits related to these payments.

Threshold Adjustments

For aged pensioners, the amount they can earn without reducing their pension will rise. Key adjustments include:

• Individual earnings: Eligible recipients can now earn up to $218 a fortnight (an increase of $6), while the maximum earnable income before pension cuts out will increase to $2,516.

• Couples: For couples, the income limits will rise to $380 per fortnight, with the income cutoff for full payment now at $3,844.40.

• Asset limits: Single homeowners will have an increased asset limit of $321,500 to qualify for the full pension, while couples can have $481,500. The threshold for receiving a part pension will rise to $704,500 for single homeowners and $1,059,000 for couples.

Minister’s Statement

Social Services Minister Tanya Plibersek emphasised the government’s commitment to addressing cost-of-living issues. In her remarks, she stated, “From 1 July, millions of recipients of social security payments will see more money in their bank accounts. Payments like the Family Tax Benefit are essential in supporting Australian families when the cost of living rises.”

The adjustments come at a crucial time for many families, making it easier for them to manage the increasing costs associated with everyday living.

Paid Parental Leave

Additionally, the annual income limits for Paid Parental Leave are increasing, with the individual limit set at $180,007 and the family limit at $373,094.

For comprehensive details regarding the new payment rates and thresholds, the official government page provides the latest updates and information.

In summary, the planned changes set to take effect on July 1 will benefit millions of Australians and acknowledge the realities of the current economic landscape. These adjustments aim to provide essential financial support as families navigate through ongoing cost-of-living pressures.