More than two million Australians will benefit from the latest round of payment indexation, which comes into effect from 1 July 2024.
Around 1.3 million families receiving Family Tax Benefit and other family payments like Newborn Supplement and Multiple Birth Allowance will receive cost-of-living support as a result of indexation.
Increases to income and asset thresholds will also bring relief for nearly one million recipients of Age Pension, Disability Support Pension and Carer Payment, who will be able to have increased income and assets before their payments are affected.
Deeming thresholds will be indexed, providing more support for eligible pensioners and other income support recipients. This comes in addition to our freezing of social security deeming rates for a further twelve months to 30 June 2025, providing continued relief for around 876,000 part-rate income support recipients.
Income limits for Paid Parental Leave will increase under the latest indexation, building on our improvements to the payment to expand it to 26-weeks by 2026 and also the recent Budget’s commitment to pay superannuation on Paid Parental Leave from 2025.
This round of indexation comes off the back of announcements in last month’s Budget that will provide $7.8 billion in cost-of-living relief, including a 10 per cent boost to Rent Assistance and paying superannuation on Paid Parental Leave. The Budget also sought to remove barriers to employment for carers and provide cost-of-living relief and more support to the social security safety net.
Minister Rishworth said the Albanese Labor Government was committed to helping Australians through the stresses of inflation and cost of living pressures.
“Indexation delivers timely boosts to people receiving family payments and pensions,” Minister Rishworth said.
“These increases will provide a direct boost to fortnightly payments for families.”
For families receiving Family Tax Benefit Part A, the maximum rate of payment for children under 13 years old will increase by $8.68 to $222.04 a fortnight. For children aged 13 years old or over, the increase will be $11.34 to a maximum of $288.82 a fortnight.
For families receiving Family Tax Benefit Part B, the maximum rate of payment for a family with a youngest child aged under five years old will increase by $7.42 to $188.86 a fortnight. For families with a youngest child aged five years old or over, the increase will be $5.18 to a maximum of $131.74 a fortnight.
The end of year supplements for Family Tax Benefit Part A and Family Tax Benefit Part B will increase by $36.50 to $916.15 and $18.25 to $448.95 respectively.
There will also be increases to Multiple Birth Allowance, Newborn Supplement, Stillborn Baby Payment and Essential Medical Equipment Payment.
The complete list of payments increasing on 1 July 2024, including income and asset limits, can be found on the Department of Social Services website.
For more information about the 2024-25 Budget measures visit the Department of Social Services website.