More than five million Australians receiving social security payments, including around half who are pensioners, will receive a cash boost in the coming weeks.
Pension payments, rent assistance, JobSeeker, ABSTUDY, and parenting payments will be increased when they are indexed to inflation on March 20. Over 2.5 million people are expected to benefit from the pension increase alone, with those on a full single rate projected to see a $22.20 rise in their fortnightly payments. The government noted that these figures are preliminary and will be officially confirmed in the coming weeks.
A recent report by COTA, a charity representing Australians aged over 50, found that one in four older people are living in poverty. COTA chief executive Patricia Sparrow said, “Many older Australians are carefully managing every dollar, and additional income will help ease pressure on household budgets. While it won’t solve the cost-of-living pressures many people face, an increase in the pension will make a small difference when it comes to managing rising costs for essentials like food, energy, insurance, and healthcare.”
Changes to deeming rates, which assess social security payments based on income earned from financial assets, will also take effect from March 20. The Australian Government Actuary recommended the government raise the deeming rates, which has been accepted. The lower deeming rate will increase by 0.5 percentage points to 1.25% for financial assets under $64,200 for singles and $106,200 for couples, while the upper rate will be set at 3.25% for assets above these thresholds.
Social Services Minister Tanya Plibersek said the changes are intended to ensure the social security system delivers value for taxpayers while remaining fair. She added, “We’ll continue to make sure the system is there to support those who need it most, ensuring that everyone can make ends meet and no one gets left behind.”
