Starting July 1, 2025, millions of Centrelink recipients across Australia will receive a boost to their payments.
This increase is part of the regular indexation aimed at addressing rising living costs. Social Services Minister Tanya Plibersek stated that the government’s “number one priority” is to alleviate the pressure from rising living expenses, and this round of adjustments is a step in that direction.
Let’s dive into the details of the new cash boost that will benefit 2.4 million Australians.
Centrelink Payment Increases for Millions of Australians
The indexation of Centrelink payments, which happens every year, ensures that these benefits are in line with inflation and help recipients keep up with the rising cost of living.
This year, the increase of 2.4% will apply to a wide range of payments, including the Family Tax Benefit, the Age Pension, the Disability Support Pension, and the Carer Payment, among others.
How Much Will Centrelink Payments Increase?
Here are the specific increases that recipients will see in their bank accounts starting July 1, 2025:
Family Tax Benefit (FTB)
- Family Tax Benefit Part A:
- The maximum fortnightly payment will rise to $227.36, an increase of $5.32.
- For families with children aged 13 or older, the rate will increase to $295.82 per fortnight, an increase of $7.
- Family Tax Benefit Part B:
- The maximum rate will increase to $193.34, an increase of $4.48.
- For families with children over 5 years old, the rate will increase to $134.96.
Newborn Supplement
- First-time parents of newborn children will receive an extra $48 over 13 weeks, increasing the total Newborn Supplement to $2,052.05.
Multiple Birth Allowance
- Multiple Birth Allowance will also see an increase:
- For families with triplets, the payment will rise to $196.56 per fortnight.
- For those with quadruplets and higher, payments will increase to $261.94 per fortnight.
Other Centrelink Changes: Income and Asset Thresholds
In addition to the payment increases, there will also be changes to the income and asset thresholds for some Centrelink payments:
- Age Pension:
- Single pensioners will now be able to earn $218 a fortnight without losing their full pension, an increase of $6.
- The upper limit for single pensioners to still receive the full pension will increase to $2,516.
- For couples, the disqualifying income limit will rise to $3,844.40 per fortnight.
- Asset Limits for Age Pensioners:
- Single homeowners can now have assets of up to $321,500 and still receive the full pension.
- Couples can have assets of $481,500 and qualify for the full pension.
- Part Pension Threshold:
- The cut-off threshold to receive a part pension will now be $704,500 for single homeowners and $1,059,000 for couples.
Paid Parental Leave Changes
- Paid Parental Leave income limits will also see an increase:
- The individual income limit will rise to $180,007 per annum.
- The family income limit will increase to $373,094 per annum.
Centrelink Payment Increases
| Payment | Old Amount | New Amount (Effective July 1, 2025) | Increase |
|---|---|---|---|
| Family Tax Benefit Part A | $222.04 | $227.36 | $5.32 |
| Family Tax Benefit (13+ years) | $288.82 | $295.82 | $7 |
| Family Tax Benefit Part B | $188.86 | $193.34 | $4.48 |
| Newborn Supplement | $2,004.05 | $2,052.05 | $48 |
| Multiple Birth Allowance (Triplets) | $192.36 | $196.56 | $4.20 |
| Multiple Birth Allowance (Quadruplets) | $257.10 | $261.94 | $4.84 |
| Age Pension (Single Pensioner Max Earnings) | $212 | $218 | $6 |
| Paid Parental Leave (Individual Income Limit) | $176,000 | $180,007 | $4,007 |
The Centrelink cash boost coming into effect on July 1, 2025 will provide much-needed relief to millions of Australians, helping them cope with the increasing cost of living.
While the amount might seem modest, it will make a significant difference in the bank accounts of those relying on government support.
FAQs
Who will benefit from the Centrelink cash boost in 2025?
Around 2.4 million Australians will benefit from the payment increases, including families, pensioners, and new parents.
Will JobSeeker or Disability Support Pension rates increase?
No, the rates for JobSeeker, Disability Support Pension, and Carer Payment will not increase this time. However, their income and asset thresholds will be adjusted.
How much will the Family Tax Benefit increase?
Family Tax Benefit Part A will increase by $5.32, and Family Tax Benefit Part B will increase by $4.48. Families with children aged 13 and older will receive higher payments.