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What Today’s Indexation Means for You

Around 5 million Australians can look forward to a little extra financial breathing space as social security payments are set to increase with indexation today. 

Currently, one in four (24%) of Australians over the age of 16 benefits from some form of government support, including the Age Pension, Disability Support Pension, and JobSeeker, among others. The largest proportion of these recipients are the elderly – aged 65 and over (around 2.6 million) are receiving the Age Pension, which accounts for 58% of the social security payments. 

What is Indexation and Why it Matters? 

Indexation is a method used by the Government to adjust the value of payment support to reflect changes in price levels, living costs, or wages, to ensure the ongoing assistance given remains effective. In instances such as the Age Pension often it is adjusted against the Consumer Price Index (CPI) and other specific indexes like the Pensioner and Beneficiary Living Cost Index (PBLCI) to reflect the current living costs. 

Today’s indexation will see increases across various payments, including a boost for Commonwealth Rent Assistance, JobSeeker, Parenting Payment Single, and ABSTUDY. There’s also good news for single parents, with expanded eligibility for Parenting Payments. These adjustments are all part of the government’s efforts to help ease the cost of living pressures for Australians who rely on these forms of security. 

Key Changes  

  • Increases include $19.60 a fortnight for single recipients and $29.40 for couples combined across Age Pension, Disability Support Pension, and Carer Payment. 
  • The maximum pension rate, including supplements, will be $1,116.30 for singles and $1,682.80 for couples per fortnight. 
  • JobSeeker Payment and ABSTUDY for singles will increase by $13.50 per fortnight; for couples, each member will receive an increase of $12.30. 
  • Parenting Payment Single will increase by $17.50 a fortnight. 
  • Expanded eligibility for Parenting Payment Single to benefit single parents with the youngest child under 14. 

If you would like more information on whether these changes may impact you or your loved ones, please get in touch with your adviser. A full list of changes can be found here .

This post and some supporting materials may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we may have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. The material in this post is correct and complete as of the date it was posted. Viridian is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this site.

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