Youth and student payments will be indexed by 6.1 per cent, a welcome increase for around 1 million residents across Australia receiving Youth Allowance payments.
The rate of Youth Allowance is set to increase between $19.10 and $41.40 a fortnight, and Austudy recipients will see an increase to their rate of between $32.40 and $41.40 a fortnight depending on living arrangements and dependent children.
Those under 21 without children receiving Disability Support Pension will receive payment increases of between $27.40 and $40.70 a fortnight, including Youth Disability Supplement.
Rates of ABSTUDY and Assistance for Isolated Children will increase, as will Mobility Allowance, Double Orphan Pension, Carer Allowance and Pharmaceutical Allowance.
Other payments and thresholds, such as adult pensions, JobSeeker Payment and Parenting Payment are indexed at other times of the year.
QUOTES ATTRIBUTABLE TO MEMBER FOR BENDIGO, LISA CHESTERS
“For young people struggling to make ends meet, this boost is a welcomed start to the new year.
“With cost-of-living pressures being felt most by people on low and fixed incomes, the indexation of government payments is even more important than before.
“The indexation increase from January 1 will help to lessen the strain of increasing living costs facing young Australians in particular.
“This will have a significant impact on the hip pockets of young people who are either studying, looking for work or receiving the Disability Support Pension if they are under 21 and don’t have children.
“With the cost of living increasing, we need to ensure students and young people can cover basic costs while focusing on their studies and career aspirations.
“Income free areas for student income support recipients will also benefit from indexation, meaning they are able to earn more before their payment is impacted.”
More details on the new payment rates and thresholds are available on the Department of Social Services website.