In an effort to provide relief to millions of Australians feeling the pinch of the ongoing cost-of-living crisis, the government is set to implement increases in several key Centrelink payments. From Thursday, March 20, 2025, over five million Aussies will see more money deposited into their bank accounts. While some see this as a step in the right direction, others argue that the boost is still insufficient to make a real difference in tackling widespread financial struggles.
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The changes will affect a wide range of recipients, including those receiving the pension, JobSeeker, parenting payments, carer payments, and Commonwealth rent assistance. Here’s a breakdown of how these payment increases will look:
Pension Payments: Small but Necessary Increases
For pensioners, the changes will see the single pension increase by $4.60 per fortnight, bringing the total to $1,148. For couples, each member will receive an additional $3.50 every two weeks. This increase, while modest, is aimed at providing a slight cushion against the rising cost of living, especially for the elderly who are often more vulnerable to financial stress.
JobSeeker Payments: A Slight Boost, but Will It Be Enough?
JobSeeker payments, which are crucial for Australians who are unemployed or underemployed, will also see an increase. For singles aged 22 and over without children, the payment will rise by $3.10 to $789.90. Meanwhile, JobSeekers with children will receive an additional $3.30 per fortnight. These increases, while welcomed, are still seen by many as insufficient given the ongoing financial challenges.
Those with partial work capacity will see their payments rise by $3.30 as well, while JobSeekers with a partner will receive $2.80 more every fortnight.
Rent Assistance: A Small Relief for Singles and Couples
For those claiming rent assistance under the Social Security Act, the boost will be 80 cents per fortnight. This may seem like a small sum, but it’s a sign of the government’s attempt to ease the strain of rising housing costs for low-income individuals and families. Both singles and couples will see this 80-cent increase.
Single Parenting and Carer Payments: Slight Adjustments
Single parents and those receiving carer payments will also see some relief. Single parents will receive an additional $4 per fortnight, while partnered parents will get $2.80 more every two weeks. For those on sharer payments, the increase is 53 cents, bringing the total to $141.33 per fortnight.
Government’s Efforts: The Bigger Picture
Social Services Minister Amanda Rishworth has emphasized that these increases are part of the government’s broader efforts to support struggling Australians. She highlighted that indexation, which adjusts payments in line with inflation, is a crucial part of the social security safety net. In fact, Labor has allocated $11.5 billion to Australia’s social security system in the 2023/24 and 2024/25 federal budgets, signaling a commitment to addressing the financial pressures faced by many Australians.
However, despite the government’s efforts, the response from social welfare advocates has been mixed.
A Call for Substantial Reform: Is It Enough?
The Australian Council of Social Services (ACOSS) CEO, Cassandra Goldie, has been vocal about the insufficiency of these changes. She argues that the increase of just 22 cents per day for JobSeekers will do little to alleviate the financial struggles many Australians face. Goldie advocates for a much larger increase, suggesting that income support payments should be raised to at least $82 per day, in line with the age pension.
Her position is clear: “The way to end poverty is simple. Raise the rate. Anything less is a choice to keep people hungry, sick, and struggling.”
The Bigger Picture: Why These Adjustments Matter
The government’s social security payment increases are part of a quarterly adjustment cycle designed to help offset the rising cost of living. These changes are linked to inflation figures, which have been significantly higher in recent years, contributing to larger-than-usual increases in payment amounts.
While these increases may offer some relief, they are far from a permanent solution to the ongoing cost-of-living crisis. Many recipients are calling for a more substantial, long-term approach that addresses the root causes of financial hardship in Australia, including affordable housing, rising healthcare costs, and the overall affordability of daily necessities.
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Conclusion: A Band-Aid or a Solution?
While these increases in Centrelink payments offer a much-needed financial boost for millions of Australians, there is a growing consensus that they are not enough to tackle the deeper issues many face. As inflation continues to impact essential services and goods, the call for a more substantial increase in social security payments remains loud and clear. Whether the government will heed this call and take bolder action in the future remains to be seen.
For those affected, these small increases might help in the short term, but the long-term solution requires more significant and structural change. Until then, many Australians will continue to struggle as they wait for a more comprehensive solution to the cost-of-living crisis.
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