July indexation rates to boost some social security payments from July 1

Quarterly indexation changes to income thresholds will increase social security payments for almost 2.4 million Australian households and retirees.

The changes will take effect from July 1 to ensure that government support keeps up with inflation.

The expansion of the current income and assets limits means that payments will increase for five schemes, including Family Tax Benefit (both Part A and B), Multiple Birth Allowance, Newborn Allowance, Stillbirth Payment and Essential Medical Equipment Payment.

For families with children under 13 receiving Part A of Family Tax Benefit, the maximum fortnightly payments will increase to $222.04, or an increase of $8.68.

Households with children over 13 could receive a maximum fortnightly payment of $288.82 – an increase of $11.34.

The Family Tax Benefit Part A supplement will also increase by $36.50 to $916.15 and by $18.25 to $448.95 for households receiving Part B Family Tax Benefit.

The indexation changes will also increase the income thresholds for those receiving parental leave pay.

Income eligibility requirements will also be extended for people receiving parental pay, old-age pension, disability pension and carer’s pay.

Funding limits for people receiving Jobseeker’s Payment, Special Benefit, ABSTUDY, Austudy, Youth Allowance, Parenting Payment will also increase.

The 2024-25 budget also announced that the assumptions that calculate returns on investments and determine whether someone can access payments will remain at 2022 levels for another year.

Budget papers say 876,000 income support recipients, including 450,000 old-age pensioners, will benefit from the decision.

Social Services Minister Amanda Rishworth said the indexation changes would provide “timely boosts” for people on pay and pensions.

“These increases will directly increase fortnightly payments for families,” she said.

Quarterly indexation changes are calculated based on changes in the consumer price index.

The latest figures showed inflation rose by 3.6 per cent in the 12 months to the March 2024 quarter, with the biggest increases in tertiary and secondary education (6.5 per cent and 6.1 per cent respectively), health and hospital services (2.3 percent). ) and rent (2.1 percent).

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