Around one million young people, carers and students are set to receive a boost to their social security payments when indexation increases take effect on 1 January 2023.
Recipients of Youth Allowance will see the largest indexation increase to their payment since it began in 1998.
Youth and student payments will be indexed by 6.1 per cent.
With cost of living pressures being felt most by people on low and fixed incomes, the indexation of government payments is even more important than before.
Minister for Social Services Amanda Rishworth said the indexation increase would help to lessen the strain of increasing living costs facing young Australians in particular.
“This will have a significant impact on the hip pockets of young people who are either studying, looking for work or receiving the Disability Support Pension if they are under 21 and don’t have children,” Minister Rishworth said.
“Income free areas for student income support recipients will also benefit from indexation, meaning they are able to earn more before their payment is impacted.”
The rate of Youth Allowance is set to increase between $19.10 and $41.40 a fortnight, and Austudy recipients will see an increase to their rate of between $32.40 and $41.40 a fortnight depending on living arrangements and dependent children.
Those under 21 without children receiving Disability Support Pension will receive payment increases of between $27.40 and $40.70 a fortnight, including Youth Disability Supplement.
Rates of ABSTUDY and Assistance for Isolated Children will increase, as will Mobility Allowance, Double Orphan Pension, Carer Allowance and Pharmaceutical Allowance.
“With the cost of living increasing, we need to ensure students and young people can cover basic costs while focusing on their studies and career aspirations,” Minister Rishworth said.
Other payments and thresholds, such as adult pensions, JobSeeker Payment and Parenting Payment are indexed at other times of the year.
More details on the new payment rates and thresholds are available on the .
