Australia to increase welfare payments for 5.3 million people

More than 5.3 million Australians will receive increased social security payments starting September 20 following routine indexation updates. The adjustments, designed to maintain purchasing power against consumer price index movements, are expected to deliver approximately $4 billion in additional support across the welfare system.

Key increases include the Age Pension, which will rise by $36.80 per fortnight for singles and $55.60 for couples. JobSeeker payments for single recipients without children will increase by $16.20 per fortnight, while Parenting Payment rates will also see adjustments. Additionally, Commonwealth Rent Assistance thresholds will rise, benefiting nearly one million renters.

However, the government is also raising deeming rates by 0.50%. For pensioners with financial assets up to $66,800 for singles or $110,600 for couples, the rate will increase to 1.75%, a move that could potentially offset some of the gains from the payment increases.