In September this year the Albanese government announced the largest increase to Centrelink payments in 12 years. This was a direct response to cost-of-living pressures created by the Consumer Price Index (CPI) which exceeded the increase in the Pensioner and Beneficiary Living Cost Index.
Annual CPI inflation increased to 6.1 per cent in the June quarter, predominantly due to higher building costs and fuel prices. In measuring CPI, the ABS uses a basket of goods and services such as Housing, Clothing, Transport, Education, Recreation, Medical Care and Food. All these directly affect the incomes of over 80 million people, with close to 5 million people impacted who are on Centrelink payments.
Pensioner and Beneficiary Living Cost Index, direct measures the effect of changes in prices on the out-of-pocket living expenses experienced by both age pensioner and other government welfare recipient households, rather than the broader CPI Index that measures across all households in general.
The above economic measurements have been the impetus to the federal government increasing the Centrelink payments detailed below:
– Pension, Disability Support Pension and Carer Payment are all set to rise by $38.90 a fortnight for singles and $58.80 a fortnight for couples.
– The maximum rate of pension will increase to $1026.50 a fortnight for singles and $773.80 for each member of a pensioner couple or $1547.60 per couple (including Pension Supplement and Energy Supplement).
– JobSeeker Payment, Parenting Payment, ABSTUDY and Rent Assistance will also increase.
– The rate of JobSeeker Payment for singles without children will increase by $25.70 a fortnight to $677.20 including Energy Supplement, while Parenting Payment Single will increase by $35.20 per fortnight to $927.40 including Pension Supplement and Energy Supplement.
– The rate for partnered JobSeeker Payment and Parenting Payment recipients will increase by $23.40 a fortnight to $616.60 including Energy Supplement.
Further, at the September 2022 Jobs and Skills Summit the government announced that recipients of the Aged Pension can now earn more without having their pension affected. This broadly equates to people being able to earn $180 a fortnight if your single, and $320 a fortnight if you are a couple. However, further details are available via: https://www.servicesaustralia.gov.au/income-test-for-pensions?context=22526
Whatever measurements are being used, the figures released around the rising costs of necessities that people need in which to live, such as housing and medical costs, are placing financial pressure on households. It is important if you receive some form of government assistance, to review how these changes may affect you and check your current payments to ensure any increases that you are eligible for have been passed on.
Referenced for this article:
https://www.abc.net.au/news/2022-09-05/large-increase-for-welfare-recipients/101404804
