Australia is set to implement updated indexation rates across various social security payments and financial support programs starting January 2025. These adjustments, announced as part of the government’s regular review process, aim to align payments with inflation and the evolving cost of living.
The changes are expected to impact a wide range of recipients, including students, job seekers, families, and pensioners.
For students, the Youth Allowance and Austudy payments will see notable increases. For instance, single students living away from home will now receive $663.30 per fortnight, up from $639.00, reflecting a $24.30 increment.
Similarly, single students with children will experience a rise from $806.00 to $836.60 per fortnight, marking an increase of $30.60. These updates also extend to special rates for long-term unemployed individuals or migrant English students engaged in full-time study or apprenticeships.
Job seekers will also benefit from revised income thresholds and payment limits. A single job seeker aged 18 or over living at home will now have an income limit of $1,235.84 per fortnight before their payment is reduced, while those living away from home will see their threshold increase to $1,955.17 per fortnight.
Families receiving support under programs such as ABSTUDY or the Assistance for Isolated Children scheme will notice adjustments in supplementary allowances. For example, the School Fees Allowance (boarding) under ABSTUDY has increased by $487 annually, bringing the maximum rate to $13,303. Additionally, the Parental Income Threshold for Youth Allowance has been raised to $65,189 annually, providing more flexibility for families with dependent children.
The government has also introduced changes to study and training loan indexation rates. From January 2025 onwards, indexation will be capped at the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI). This measure aims to reduce the financial burden on borrowers by ensuring that loan increases remain manageable amidst fluctuating economic conditions.
These updates reflect the government’s commitment to maintaining the real value of social security payments while addressing inflationary pressures. By aligning payments with current economic indicators such as CPI and WPI, these changes provide much-needed relief to vulnerable groups while supporting broader financial stability across Australia.
As these new rates come into effect in January 2025, recipients are encouraged to review their eligibility and payment details to understand how these changes may impact their financial planning.
