Centrelink payments: Youth Allowance, Austudy, Carers’ Welfare get biggest boost in decades from January 1st

About a million Australians will receive a boost to their welfare payments from this week, with the biggest increase in Centrelinks payments to young people in decades beginning January 1.

Payments by young people, carers and students will be increased by up to $20 a week to ease rising pressure on the cost of living.

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Benefits are indexed by just over 6 percent, with youth support plans to increase by $19.10 to $41.40 every two weeks.

Austudy payments for older students and trainees will increase by $32.40 to $41.40 every two weeks, while those under 21 who have no children will receive a disability benefit of $27.40 to $40.70 receive US dollars.

The rates for ABSTUDY, childcare, mobility allowance, double orphan’s pension, care allowance and drug allowance will also be increased.

The increases are part of the routine indexation that takes place annually in January to keep up with changes in inflation, and this increase marks the largest indexation of child benefit since 1998.

Social Services Secretary Amanda Rishworth said the increases would help ease the strain of rising pressures on the cost of living.

“This will have a significant impact on young people’s fanny packs,” she said in December.

“Income-free areas for student income support recipients will also benefit from indexation, meaning they can earn more before their payment is impacted.”

Other tariffs such as jobseekers and old-age pension are indexed at other times of the year.

What about JobSeeker?

The Government announced the increase in indexation as part of a key parliamentary decision to reform legislation that could result in an increase in Centrelink JobSeeker payments.

From this year, a panel of experts will review the level of payments like JobSeeker ahead of each federal budget to determine if the payments adequately support Australians.

It’s part of a deal brokered by Senator David Pocock to get the government’s Industrial Relations Bill through Parliament in November.

The annual review will examine every type of income support payment made by the government and provide advice on whether it will be abolished, including Old Age Pension, Parental Allowance and Disability Pension.

The Audit Committee will then publish its recommendation two weeks after the budget, but it is up to the government to decide whether to follow the recommendation.

Pocock previously said while it may not directly translate to increases in income support payments, the reviews would increase pressure on the government to justify its policies for Australians living below the poverty line.

– With AAP