Support payments rise as indexation takes effect

INCOME support payments for millions of Australians have increased following the latest round of indexation that took effect on March 20.

Local federal MP Justine Elliot said the changes would affect pensioners, jobseekers, parents and students receiving government assistance.

“The social security system supports millions of Australians. Whether it’s aged pensioners or young children, we want every Australian to get the help they need when they can’t work or need a bit of support to make ends meet,” she said.

Elliot said a single pensioner was now receiving almost $5000 more per year compared with 2022, including the Pension Supplement and Energy Supplement.

She said Commonwealth Rent Assistance had also increased, with maximum rates more than 50 per cent higher since the Albanese government was elected.

“As a result of indexation and Labor’s changes to the payment over the past four years JobSeeker has increased by almost $4000 annually,” she said.

Elliot said parents receiving paid parental leave were also better off, while recipients of JobSeeker Payment, Special Benefit, ABSTUDY for those aged 22 and over, and Parenting Payment would benefit from higher payments.

The changes coincide with an update to the small debt waiver threshold for money owed to Services Australia.

The waiver permanently cancels certain small or accidental debts of up to $250, but does not apply to cases involving serious non-compliance or fraud.

Elliot said the threshold had increased for the first time in more than 30 years.

“With the waiver now set to $250, around 1.2 million debts will now be waived or no longer raised in 2025-26,” she said.

“This means that around half of the backlog of potential debts are wiped on March 20.”

She said the changes were intended to reduce administrative costs associated with recovering small debts while easing pressure on recipients.

The waiver will be indexed annually from July 1 in line with movements in the Consumer Price Index.

BY STAFF WRITER