Yahoo Finance $1,144 Centrelink cost-of-living cash boost for millions next month
Age pension and JobSeeker recipients can expect an increase to their Centrelink payments from September 20.
Millions of Aussies will receive a boost to their Centrelink payments and pensions when indexation kicks in next month. New calculations have revealed just how much more age pension and JobSeeker recipients can expect to receive.
From September 20, the maximum rate for the age pension, carer payment and disability support pension is expected to increase by $28.10 a fortnight for singles and $42.40 for couples. This would bring fortnightly payments up to $1,144.40 for singles and $1,725.20 for couples, calculations by the Combined Pensioners and Superannuants Association (CPSA) found.
The maximum rate for JobSeeker is expected to increase by $15.30 for singles, taking the total rate to $778 per fortnight. For couples, the rate is expected to increase by $14 to $712.30 per fortnight.
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Final indexation figures will be released by the government in the coming days. But this should give you a good indication of what to expect with previous CPSA estimates accurate within 10 cents.
You might not see the full increase on your next payment after September 20. That’s because of the way payments are calculated.
“Pensions are paid fortnightly, but they’re calculated based on a daily rate and paid in arrears,” CSPA explained.
“This basically means that by the time you get paid, the dates you’re being paid for have already passed.”
That means your first payment after indexation will likely be a few dollars less but your second payment should see the fully indexed payment reflected.
Do you think the payment increases are enough? Contact tamika.seeto@yahooinc.com to share your thoughts
How are Centrelink payment increases calculated?
Indexation happens twice a year for these payments and pensions. This happens on March 20 and September 20.
Age pension rates are based on changes to the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI). In the past six months, CPI Has increased by 2 per cent and PBLCI by 2.6 per cent.
“As a result, the maximum basic rate for these payments will go up by 2.6 per cent and the pension supplement will increase by 2 per cent,” CPSA said.
“This is a definite improvement on the 1.8 per cent increase we saw in March 2024, but unfortunately the higher number reflects increases in the cost of living.”
JobSeeker rates are indexed based on the last two quarterly CPI increases, so rates are expected to increase by 2 per cent.
What if I am not eligible for the age pension?
Around five million Aussies will receive the boost to their Centrelink payments, with about 2.6 million Aussies receiving the age pension.
If you are just outside of the asset test for the age pension and therefore not eligible, financial advisor Alex Jamieson told Yahoo Finance there were a few “levers” you could pull to improve your position.
“One is you could use a gifting provision within the relevant limits, you could go on a holiday or spend the money on house repairs, and the prepaid funerals are another lever,” he said.
“If you just duck under the limit, you also get all the ancillary benefits such as medications and utility reductions and those types of things.
"So often $1 pensions but all the extra benefits that go with it can be a useful strategy.”
You can read more about prepaid funerals and their impact on Centrelink payments here.
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