Starting in July 2025, millions of Australians will see an increase in their Centrelink payments, aimed at easing the financial strain brought on by the rising cost of living. This boost is part of the government’s regular adjustments, known as “indexation,” to ensure that welfare benefits keep up with inflation.
So, what does this mean for you? Well, from July 1, 2025, around 2.4 million people will have a little more money in their accounts. This change will affect a wide variety of Centrelink recipients, including families, pensioners, carers, and those with disabilities.
Who Will Benefit from the Increase?
The payment hike applies to several key welfare benefits, such as:
- Family Tax Benefit Part A and Part B
- Newborn Supplement
- Multiple Birth Allowance
- Age Pension
- Disability Support Pension (DSP)
- Carer Payment
The government is also adjusting the income and asset test limits for these payments. This means that more people might qualify for support or see a higher payment than before.
How Much Will the Payments Go Up?
Services Australia has confirmed the new rates for some common benefits. Here’s a quick breakdown:
Family Tax Benefit Part A
- New maximum rate: $227.36 per fortnight
- Increase: $5.32
- For children aged 13 or over: $295.82, an increase of $7
Family Tax Benefit Part B
- New maximum rate: $193.34 per fortnight
- Increase: $4.48
- For children over age 5: $134.96
Why Is Indexation So Important?
You might be wondering why this adjustment is necessary. According to Services Australia, indexation is a way to ensure that welfare payments keep up with the cost of living. As one government spokesperson explained, “Indexation is a vital tool to help families when the cost of living rises. Payments like the Family Tax Benefit help with the costs of raising children, and this increase makes a real difference for many families across Australia.”
When Will the New Rates Take Effect?
The updated payments will begin on Monday, 1 July 2025. If you’re eligible, you don’t need to do anything. Services Australia will automatically apply the new rates to your next eligible payment.
To check how these changes will affect you, simply log in to your myGov account or reach out to Centrelink through the Services Australia website.
Need Help Understanding Your Payments?
If you’re a bit confused about how the changes apply to you, don’t worry. Here’s what you can do:
- Visit servicesaustralia.gov.au
- Use the Payment and Service Finder tool
- Call the Centrelink Families Line at 136 150
A Little Extra Can Go a Long Way
Although the Centrelink payment increase in July 2025 may not seem huge, it’s still a step in the right direction. Every extra dollar counts, especially when families, pensioners, and carers are struggling with rising food, rent, and energy costs.
If you’re eligible for one of the updated benefits, make sure your details are current so you don’t miss out on the full payment. After all, even small boosts can make a big difference when you’re trying to make ends meet.
