Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
The Australian government plans to increase Centrelink payments to help Australians with the rising cost of living. The Department of Social Sciences has published the Indexation for January 2025 which will be effective from January 1, 2025.
The cash increase in Centrelink payments will impact the lives of many Australians and help them cope with rising inflation. With the increase in Centrelink payments, the government has also increased the income test threshold that every Australian should know.
Increase in Centrelink payments in January 2025
Australians are in for a big increase in Centrelink payments from 1 January 2025. The Government estimates that millions of Australians will benefit from the increase in payments and get the massive help they need most.
The government is indexing regular welfare payments to ensure they match the rising cost of living, and Australians will have enough payments to cope with high prices of goods and services, rent and other costs. Indexation is based on the Consumer Price Index and other indices to ensure it matches the rising cost of living.
Under the January 2025 indexation, Centrelink payments to increase include Youth Allowance, Carer Allowance, Austudy, Disability Pension and other student and miscellaneous payments. Students receiving Austudy and Youth Allowance will benefit the most from the increase and it will help them cope with the extra costs that may arise from living away from home.
Increase in youth allowance in January 2025
The Department of Social Welfare has announced the indexation of social benefits for January 2025, based on which students who received youth allowance can expect the following increase in payment depending on their family situation:
| Family situation | Advance payment | New payment (January 1, 2025) |
| Single, under 18, lives at home with parents | $395.30 | $410.30 |
| Single, under 18 and living away from home | 639 dollars | $663.30 |
| Single, 18 or older, lives at home | $455.30 | $472.50 |
| Single, 18 or older and living away from home | 639 dollars | $663.30 |
| Single with children | 806 dollars | $836.60 |
| In a partnership without a child | 639 dollars | $663.30 |
| In cooperation with children | $691.80 | $718.10 |
Special rate under Youth Allowance for special circumstances, such as disability, single parent, etc.:
- A single person living at home will receive $555.80, up from $535.50 in January 2025;
- Childless partners will receive $718.10, up from $691.80 from January 2025;
- Single people living away from home will receive $783.30, up from $754.60 from January 2025.
Austudy Centrelink payment increase in January 2025
The maximum Austudy payment rate will increase based on family situation from January 2025, here are the maximum rates:
| Family situation | Current payment | New payment (January 2025) |
| Single with children | 806 dollars | $836.60 |
| In cooperation with children | $691.80 | $718.10 |
| Single | 639 dollars | $663.30 |
| Partners without children | 639 dollars | $663.30 |
| Special prices | ||
| Single without child | $754.60 | $783.30 |
| In a partnership without a child | $691.80 | $718.10 |
Disabled Support Pension Centrelink payment increase in January 2025
The payment for disabled people under 21 with no dependent children will also increase from January 2025. Centrelink’s payment increases are based on the following rates:
| Family situation | Instant payment | New payment (January 2025) |
| Single, under the age of 18 have a dependent | $548.80 | $569.60 |
| Single, under the age of 18, without dependents | $792.50 | $822.60 |
| Single, aged 18 to 20, with dependents | $608.70 | $631.80 |
| Single, 18-20 without dependents | $792.50 | $822.60 |
| Disability allowance for young people | $153.50 | $159.30 |
| Couple | $792.50 | $822.60 |
Miscellaneous Centrelink payment increase in January 2025
In addition to the increase in many Centrelink payments, Australians can check the following benefits and their payment increases that will apply from January 2025:
- Carer Allowance would increase from $153.50 to $159.30 at a rate increase of $5.80.
- The child surcharge would increase to $158.70 for children under 13, $220.80 for children 13 to 15, and $75.50 for a one-time payment.
- The double orphan pension would increase to $79.70 from a rate of $77.00.
- The mobility fee would increase to $120.30 (standard rate) and $168.20 (enhanced rate).
- The ABSTUDY living allowance would increase based on the student’s family situation and age.
In addition, the pharmaceutical supplement will remain the same as the previous amount: $6.80 for singles, $3.40 for couples and $6.80 for partners separated due to illness.
Change in the income threshold from January 2025
The income limit for payouts has also been increased for the income test, giving more people benefits such as:
- Youth Allowance: The lower income threshold for free areas is $538.00, while the upper income threshold will be $633.00. In addition, the income limit will be affected by your family situation and the benefits you receive.
- The income threshold for Austudy has increased at the same rate as the Youth Allowance for the lower and higher income thresholds.
- The income test for a disability pension below the 21 income threshold is increased based on family situation, for example, single and under 18 earners with a dependent income limit for January 2025 will be $1,376.60.
- The income limit for carer payments has also increased to $140,795 from $868,500 for the lower asset limit and $1,290,250 for the higher asset limit.
- The income limit for the Jobseeker payment is the same as before, for example, $1,583.50 for a single person age 55 or older.
The Australian Government regularly indexes welfare payments to ensure people receive support that can help them cope with the rising cost of living, Australians should check new changes to payments and income limits to understand the upcoming payment.
