From July 2025, millions of Australians receiving government support experienced a Centrelink payments boost, thanks to a 2.4% increase through the federal government’s regular indexation.
This update aims to align welfare payments with rising living costs, giving beneficiaries a bit more room in their budgets.
The adjustment applies to a wide array of payments, including the Age Pension, JobSeeker, Youth Allowance, Family Tax Benefit, and more.
What Triggered the July 2025 Centrelink Increase?
Twice every year, Centrelink revises payment amounts based on economic indicators like the Consumer Price Index (CPI) and the Wage Price Index (WPI). The 2.4% rise in July 2025 reflects this process, ensuring payments stay in line with inflation.
This policy directly assists Australians who depend on welfare to handle daily expenses such as rent, groceries, and utility bills.
Who Benefits from the Centrelink Payments Boost 2025?
A broad spectrum of recipients will notice this Centrelink increase across key support programs:
1. Age Pension
- Applies to both single and partnered retirees.
- Singles may receive up to $19 more per fortnight.
2. JobSeeker Payment
- Benefits Australians aged 22 and older, but under Age Pension age.
- Recipients can expect about $14 extra per fortnight.
3. Parenting Payment
- Single and partnered parents are included.
- Helps offset increased childcare and living costs.
4. Carer Payment & Disability Support Pension
- Higher payment rates and eligibility thresholds.
- Supports those unable to work due to disability or caring responsibilities.
5. Youth Allowance & Austudy
- Includes students, apprentices, and those in secondary or tertiary education.
- Boosts financial support for young Australians.
6. Family Tax Benefit (FTB) A & B
- FTB A (for kids under 13): now $227.36 per fortnight.
- FTB B (for single-income households): raised to $193.34 per fortnight.
Other Changes Accompanying the July Boost
Alongside higher payments, income and asset thresholds were adjusted upward. This makes it possible for more people to become eligible for payments, even if they previously earned or owned too much.
- Age Pension income-free thresholds increased
- Asset test limits raised for both individuals and couples
- Family support thresholds adjusted to match inflation trends
How Much Extra Will You Receive?
Although increases vary by payment type, most recipients will see between $10 and $30 extra per fortnight, adding up to around $250 per year in many cases.
Examples:
- Single Age Pensioner: +$19 per fortnight
- JobSeeker (Age 22+): +$14 per fortnight
- Combined FTB A & B: +$400+ annually
Why This Centrelink Boost Is Crucial
As cost-of-living pressures rise, especially in areas like housing, utilities, and food, these modest increases provide meaningful relief. While not drastic, they help many Australians maintain a basic standard of living.
Advocacy organizations are pushing for more frequent and larger increases, especially for groups like JobSeekers and students, but this update is considered a positive step forward.
The Centrelink payments boost in July 2025 is a timely adjustment that supports millions of Australians facing economic pressures. By increasing key welfare payments and expanding eligibility through higher income and asset thresholds, the government aims to provide essential relief. While many argue for broader reforms, this latest indexation reflects a commitment to helping those who need it most.
FAQs
1. How often are Centrelink payments increased?
Centrelink payments are reviewed and potentially increased twice a year, in March and September, through a process called indexation.
2. Will everyone on Centrelink get a higher payment in July 2025?
Most major payments like the Age Pension, JobSeeker, Youth Allowance, and Family Tax Benefit received increases, but the exact amount varies by individual circumstances.
3. What is indexation, and how does it affect my payments?
Indexation adjusts payment amounts based on inflation trends, using indicators like the CPI and WPI to ensure welfare keeps up with cost-of-living changes.
4. Can I now qualify for Centrelink even if I didn’t before?
Yes. With higher income and asset thresholds, some people who were previously ineligible may now qualify for benefits.
5. How much more will I get with the new Centrelink rates?
Increases typically range from $10 to $30 per fortnight, depending on your payment type. For instance, Age Pensioners might see up to $19 extra, while Family Tax Benefit recipients could gain $400+ annually.