More than five million people in Australia receiving social security payments, including a large number of pensioners, are set to receive a cash boost today.
Payments such as the pension, rent assistance, JobSeeker, ABSTUDY, and parenting payments have been increased in line with inflation. More than 2.5 million people are expected to benefit from the pension increase alone, with those on the full single rate receiving an additional $22.20 per fortnight.
A recent report by COTA found that one in four older Australians are living in poverty. COTA Chief Executive Patricia Sparrow said many older individuals carefully manage their finances, and the additional income will help ease pressure on household budgets.
She noted that while the increase will not fully address the rising cost of living, it will provide some relief for essential expenses such as food, energy, insurance, and healthcare.
Meanwhile, changes to deeming rates—used to assess income from financial assets for social security purposes—have also come into effect. The Australian Government Actuary recommended increasing these rates, a proposal accepted by the government.
Under the new changes, the lower deeming rate has been raised by 0.5% to 1.25% for financial assets below set thresholds, while the upper rate has been set at 3.25% for assets above those levels.
Social Services Minister Tanya Plibersek stated that the adjustments are aimed at ensuring fairness in the system while continuing to support those most in need.
