More than 1 million Australians are set to benefit from a cash boost to a raft of welfare payments as indexation kicks in with the new year.
Those who receive Youth Allowance, Austudy, ABSTUDY and Carer Allowance payments are among those set to see an increase to their fortnightly payments on January 1, 2025.
Single recipients of Youth Allowance who are over 18 years old and living at home will receive an extra $17.30 a fortnight, boosting their payment from $459.80 to $477.10.
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Single and partnered recipients living away from home will receive $670.30 instead of $646.
The parental income test threshold for Youth Allowance will also increase to $65,189 a year.
Austudy payments will increase the most for single individuals with dependent children.
From next year they will receive $845.80 a fortnight instead of $815.20, an increase of $30.60.
Those with partners will receive an increase of $26.30, bringing their payment to $725.80.
People doing a Master’s degree or a Doctorate who receive ABSTUDY assistance will benefit the most in this round of indexation increases, with payments jumping by $54 a fortnight to $1,231.40.
More than 660,000 carers will benefit when the Carer Allowance increases to $159.30 a fortnight.
The rates for mobility allowance and double orphan pension will also increase.
The increases are part of routine indexation that happens annually in January to keep up with changes in inflation.
Social Services Minister Amanda Rishworth said indexation allows payments to be adjusted in line with cost of living changes.
“We want to reduce disadvantage and maintain Australia’s strong and sustainable social safety net by providing relief to those most in need,” she said.
The good news for students follows Labor’s announcement that it would wipe $3 billion of student debt for three million Australians.
Another 20 per cent cut to student loans, a raising of the minimum repayment threshold, and further cuts to repayment rates were also promised for 2025 — but only if the Labor Party is returned to office at next year’s federal election.
A complete list of January 1 payment increases can be found on the Department of Social Services website.