Anti-poverty campaigners say the indexation increase in Centrelink payments on January 1 will not be enough to make up for soaring rents and high living costs
More than a million recipients of youth, student and carer payments will get a boost as part of regular indexation in January, but supporters say high living costs, including soaring rents, far outweigh the increase.
Rate increases are automatically linked to price changes in the Consumer Price Index and will apply to Youth Allowance, Australian Research Allowance, Young Disability Pension and Carer Allowance.
From January 1, single Youth Allowance recipients aged 18 or over who live at home will see their payment increase by $17.30 a fortnight, from $459.80 to $477.10. Youth Allowance recipients living away from home will receive $670.30, instead of $646.
The Austudy Supplement will increase by $24.30 to $26.30 to a maximum of $845.80, so recipients without dependent children will receive $670.30 a fortnight and recipients with children will receive $845.80.
More than 660,000 people receiving the Carer’s Benefit will see their fortnightly payment rise by an extra $5.80 to $159.30.
Single youth allowance recipients with children will see their allowance increase by $30.60 to a maximum of $845.80 a fortnight, including the energy supplement.
But anti-poverty campaigners say the payment does little to help people living below the poverty line and are calling on the government to increase it above the Henderson poverty line of $612.10 a week for one person.
Recipients of the Jobseeker, Age Pension and Disability Pension will not see an increase as these payments are indexed twice a year in March and September.
Social Services Minister Amanda Rishworth said the government remained steadfast in its commitment to helping Australians manage cost of living pressures and providing a strong social security safety net when they need it.
“We want to reduce disadvantage by delivering relief to those most in need and maintain a strong and sustainable social safety net in Australia,” Rishworth said.
“Through indexation, the amount of the subsidy is adjusted in line with changes in the cost of living to ensure people have more money in their pockets.”
Jay Coonan, spokesman for the Anti-Poverty Centre, said people on welfare were struggling and indexation would do little to ease the pressure on low-income people from the cost of living and the housing crisis.
The median weekly rent for all dwellings in Australia hit a record high of $627 in May, while household food prices rose by more than 17% between March and June this year compared to 2020.
“Indexation makes no sense when people relying on Centrelink payments are living hundreds of dollars a week below the poverty line.
“Every grant must be increased to at least the Henderson poverty line, until that happens any claim by the government that they are actually helping the poor is a lie.
“They just don’t understand. There’s a huge gap between the government’s rhetoric and our reality, and they can’t keep us fed on their own terms.”