G’day to Extra Pay: What’s Changing?
Starting July 1, 2025, Services Australia will implement a 2.4% indexation across various social services payments. This adjustment aims to help Aussies keep up with the rising cost of living. Minister for Social Services, Tanya Plibersek, emphasized the importance of this move, stating, “Indexation is a crucial way to help families when cost of living rises.”
Breakdown of the Boost
| Payment Type | Previous Rate | New Rate (from July 1, 2025) | Increase |
|---|---|---|---|
| Family Tax Benefit Part A (child <13) | $222.04/fortnight | $227.36/fortnight | +$5.32 |
| Family Tax Benefit Part A (child ≥13) | $288.82/fortnight | $295.82/fortnight | +$7.00 |
| Family Tax Benefit Part B (child <5) | $188.86/fortnight | $193.34/fortnight | +$4.48 |
| Family Tax Benefit Part B (child ≥5) | $131.74/fortnight | $134.96/fortnight | +$3.22 |
| Newborn Supplement (first child, 13 weeks) | $2,003.82 | $2,052.05 | +$48.23 |
| Multiple Birth Allowance (triplets, per fortnight) | $191.94 | $196.56 | +$4.62 |
| Parenting Payment Single | $1,006.50/fortnight | $1,026.30/fortnight | +$19.80 |
Pensioners and Carers: Thresholds, Not Rates
Pension rates are not part of the July indexation. The Age Pension, Disability Support Pension and Carer Payment are adjusted in March and September; the July changes that affect pensioners are limited to income and asset thresholds.
Families and New Parents: Extra Support
Families will benefit from increased payments across various supplements. For example, the Newborn Supplement will rise by $48 over 13 weeks, and the Multiple Birth Allowance will see a $120 annual increase.
Asset and Income Threshold Adjustments
While youth and student payments won’t see rate increases in July (they’re indexed in January), asset limits for recipients of JobSeeker Payment, Youth Allowance, Austudy, ABSTUDY Living Allowance, Parenting Payment, and Special Benefit will increase by 2.4%. Additionally, the income threshold for Parenting Payment Single will be indexed.
What’s Not Changing?
Payments such as JobSeeker, Youth Allowance, and Austudy are indexed in January, March, and September. Therefore, they won’t see changes in the July indexation.
Sources:
- Services Australia, Newborn Supplement rates
- Department of Social Services, rates list, 1 July 2025
- Australian Labor Party, “More cost of living relief for over 2.4 million recipients from 1 July”
- 9News, “Boost in social services payments to hit bank accounts July 1”
Photo: Orderinchaos, cropped, CC BY-SA 4.0, via Wikimedia Commons.
A Centrelink service centre in Capalaba, Queensland. Centrelink payments are delivered by Services Australia.
