Starting July 1, millions of Australians receiving Centrelink payments will see a meaningful increase in their benefits. The federal government’s latest indexation changes are designed to combat rising living costs and provide financial relief to families, pensioners, and welfare recipients across the country.
Social Services Minister Tanya Plibersek confirmed the adjustments, emphasizing that no one should be left behind in the face of inflation. With more than 2.4 million Australians set to benefit, this cash boost is one of the most significant social support increases in recent years.
Who Will Benefit from the Centrelink Payment Increase?
The changes will affect recipients of a wide range of payments, including:
- Family Tax Benefits (Parts A & B)
- Parenting Payments
- Newborn Supplement
- Multiple Birth Allowance
- Age Pension
- Parental Leave Pay
- Disability Support Pension
These updates are especially beneficial for low to middle-income households who rely on social welfare to meet essential living costs.
Breakdown of Key Centrelink Payment Increases
Here’s a closer look at the upcoming increases across major payment categories:
| Payment Type | Previous Amount | New Amount (from July 1, 2025) |
|---|---|---|
| Family Tax Benefit Part A (under 13) | $222.04 | $227.36 per fortnight |
| Family Tax Benefit Part A (13–15) | – | $295.82 per fortnight |
| Base rate per child | – | $72.94 |
| End-of-year supplement (Part A) | – | $938.05 |
| Family Tax Benefit Part B (under 5) | – | $193.34 per fortnight |
| Family Tax Benefit Part B (5–18) | – | $134.96 per fortnight |
| End-of-year supplement (Part B) | – | $459.90 |
| Newborn Supplement | – | Up to $2,052.05 |
| Upfront payment per child | – | $683.00 |
| Multiple Birth Allowance (triplets) | – | $196.56 per fortnight |
| Multiple Birth Allowance (4+ children) | – | $261.94 per fortnight |
These enhancements provide much-needed assistance for parents managing the rising costs of raising children in today’s economic environment.
Pension Adjustments and Asset Threshold Increases
Age Pension recipients will also benefit from updated income and asset thresholds. These adjustments mean more people will qualify for payments or retain more of their benefits:
- Single homeowners can now have up to $321,500 in assets and still qualify for the full pension
- Couple homeowners see their threshold increase to $481,500
- Income free area for singles rises to $218 per fortnight
- Disqualifying income limits for singles now sit at $2,516.00, and $3,844.40 for couples combined
These updates improve pension sustainability while offering greater flexibility for older Australians with modest savings.
Updates to Parental Leave and Disability Support
Significant changes also apply to Parental Leave Pay and Disability Support Pensions:
- Parental Leave Pay:
- Individual income cap increases to $180,007/year
- Family income limit rises to $373,094/year
- Disability Support Pension (under 21, no children):
- Income limit now $1,895.00 per fortnight for independent singles
These revisions aim to support working parents and young Australians with disabilities, aligning income eligibility with broader economic shifts.
Why These Changes Matter
Minister Plibersek emphasized that indexation is vital to ensure the social safety net keeps up with cost-of-living increases. Economists agree that regular payment reviews and updates are essential, especially as Australians continue to deal with inflation, housing pressures, and rising utility costs.
These Centrelink payment increases help preserve purchasing power, reduce welfare gaps, and stabilize vulnerable households.
With nearly every major payment category receiving a boost, this move reflects the government’s effort to make social support more dynamic and responsive to real-life economic challenges.
Millions of Australians stand to gain from the Centrelink changes coming into effect on July 1, 2025. Whether you’re a parent, pensioner, or receiving disability support, the adjustments will bring valuable relief. As always, recipients should check their updated eligibility on the Department of Social Services website and ensure all personal information is current to receive the full benefit.
FAQs
When do the new Centrelink rates begin?
July 1, 2025.
Who is eligible for the Family Tax Benefit increase?
Families with children under 19 who meet income and residency requirements.
Do pensioners need to reapply under the new asset thresholds?
No, but it’s important to keep Centrelink updated with any financial changes.