Representative image of a Social Security card.
The federal government will increase welfare payments for more than one million Australians from January 1 to help with the rising cost of living and ensure those who rely on social security payments keep pace with inflation.
The amount of the supplement will increase by 3.8 per cent, which means that certain groups will see a significant increase in their supplement. For example, the amount of the supplement for the youth population will increase from $17.30 to $24.30 per fortnight, and the amount of the supplement for single students will increase from $24.30 to $30.60 per fortnight, the Minister for Social Services said in a statement.
According to Channel Nine, the fortnightly welfare allowance for carers will increase to $159.30, an increase of $5.80 every fortnight.
Other Centrelink payments, such as the Double Orphan Pension, Mobility Allowance and Young Persons with Disabilities Pension, will also increase.
“We want to reduce disadvantage and maintain Australia’s strong and sustainable social safety net by delivering relief to those who need it most,” Social Services Minister Amanda Rishworth said in the statement. “Through indexation, payments will adjust in line with changes in the cost of living to ensure people have more money in their pockets.”
While this growth is welcome, experts believe it may still not be enough to make up for the rising cost of living.
Australian Council of Social Service chief executive Cassandra Goldie noted that despite the change, some Australians would still live below the poverty line.
“When you live in poverty, every dollar counts – but right now there are students across the country who are often unable to feed themselves,” she said.