Centrelink cash boost for millions 'nowhere near enough': 'Tough times'

More than five million Aussies will see an increase to their Centrelink payments within weeks. But the country's peak welfare body has claimed the increase doesn't go far enough to help those struggling with the high cost of living.

JobSeeker and the Age Pension are among the pensions and payments that will rise from September 20 when regular indexation takes effect. The government said the increase, which will bump up payments for a single JobSeeker recipient by $15 a fortnight, would provide “timely cost-of-living relief”.

Numerous Centrelink recipients told Yahoo Finance that while any increase to payments was welcome, it was still not enough to give them real relief particularly as rental prices skyrocket. One JobSeeker recipient, who works part-time in retail, said the current rates meant it was “difficult to survive” and the extra money "doesn't go far".

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“Although the increase of $15 per fortnight is certainly appreciated it is still nowhere near enough to live off in these tough times,” he said.

“The Government still doesn't realise how far this money goes when you have rent to pay … Probably 75 per cent of our income just goes on rent as the prices in Brisbane are just crazy.”

Another JobSeeker recipient looking for work shared that she was struggling with the rising cost of rent, bills and groceries, and found she was “broke” the same day she was paid despite being strict with her budgeting.

“I don't think it's enough at all as I'm a single parent with my oldest still at home and my rent alone each fortnight takes $740, then I pay towards my utility bills every fortnight, the cost of running my vehicle with fuel prices up over $2 [and] prices of food is constantly on the rise,” she told Yahoo Finance.

"I can't afford to buy much, I don't buy fruit or any fancy stuff."

National rents held steady at $600 per week in June, PropTrack data found. This was steady over the quarter but up 9.1 per cent annually.

The annual rate of inflation slowed to 3.5 per cent in July, down from 3.8 per cent in June, off the back of government electricity rebates.

Are you a Centrelink recipient with a story to share? Contact tamika.seeto@yahooinc.com

Rates ‘below all measures of adequacy’

Australia’s peak welfare body, the Australian Council of Social Service (ACOSS), said the rates of many payments including JobSeeker were inadequate.

“ACOSS welcomes investment in social security but the core issue remains: JobSeeker, Youth Allowance and related payments remain below all measures of adequacy,” ACOSS said.

The body is calling on the government to raise the rate of these payments to at least $80 a day so people can “cover the basics”.

Along with the pension and payment increases, the government will increase the maximum rate of Commonwealth Rental Assistance by 10 per cent. The maximum rate will increase by $23 to $211.20 per fortnight for singles renting alone, and $27.02 to $248.22 per fortnight for families with one or two children.

ACOSS said fewer than half of people receiving JobSeeker received Rent Assistance.

“Every dollar counts for people on the lowest incomes, but even with 10 per cent rent assistance increase most people on JobSeeker and Youth Allowance renting privately will still be in housing stress because JobSeeker and Youth Allowance are so low,” the group said.

How much are Centrelink payments increasing?

From September 20, the maximum rate for JobSeeker for a single person with no children will increase by $15.30 a fortnight, bringing the total payment to $778 a fortnight.

The partnered rate will increase by $14 a fortnight, bringing the total to $712.30 each per fortnight or $1,424.60 combined.

The Age Pension will increase by $28.10 a fortnight for singles and $42.40 for couples combined.

This will bring it to $1,047.10 for singles and $862.60 each for couples, or $1,725.20 total.

The same increase will apply to the disability support pension and carer payment.

The Parenting Payment Single base will increase by $19.80 to $978.60 a fortnight, while the Parenting Payment Partnered will increase by $14 to $712,30 a fortnight.

Youth Allowance payments are not increasing in September as they are indexed in January. You see the complete list of payment increases on the government’s website.

Changes to the eligibility criteria for JobSeeker, first announced in the federal budget, will also come into effect the same day. Recipients with an assessed partial capacity to work zero to 14 hours per week will be able to move onto the higher rate of JobSeeker.

This will work out to an increase of $71.20 a fortnight for someone moving from the lower to higher rate.

What has the government said?

When announcing the increases, Social Services Minister Amanda Rishworth said the government was “firmly committed” to delivering greater assistance to Aussies facing cost-of-living challenges.

“Indexation, together with our Budget measures, means maximum rates of Commonwealth Rent Assistance will have increased by around 45 per cent since the Albanese Government was elected,” Rishworth said.

“This indexation will deliver timely boosts to people receiving allowance payments and pensions, ensuring that these vulnerable cohorts have more money in their pockets for everyday expenses.”

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