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Highlights
- The Australian Federal Government is seeking to help the Aussies keep up with the rising cost of living.
- Nearly 5 million Australians will benefit from a boost to their social security payments.
- The 2.1% boost in pension payments is likely to help millions of Aussies to keep up with the rising costs.
The Australian Federal Government has geared up to help Aussies keep up with the rising cost of living. Around five million Australians will benefit from the most significant boost to their social security payments in almost nine years.
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As the average petrol prices have been surging to AU$2.20 per litre in some cities, flow-on inflation is highly expected with increased costs of other critical goods.
Centrelink is set to increase its payments amid a spike in the cost-of-living prices by next week.
The 2.1% boost in pensioner payments, with accelerated rates for other welfare recipients, will likely help millions of people keep up with the rising costs.
What next?
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The upcoming Monday, the recipients of age pension, disability support pension and carer payments will receive an extra AU$20.10 a fortnight. While the singles will receive up to AU$987.60, couples' rates will increase by AU$30.20 a fortnight to AU$1488.80.
As per media reports, Social Services Minister Anne Ruston said the 2.1% boost to pension payments was the highest since 2013. This is providing money to the older Aussies, especially those who depend upon social security system, she said.
Specific calculations have been carried out to investigate the actual expenses of senior Australians.
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Apart from this, asset test limits have also been increased, giving more senior Aussies access to a part pension. The asset limit for a single homeowner increased by AU$6750 to AU$5,99,750, and for couples, it's risen by AU$10,000 to AU$9,01,500.
However, childless single Jobseeker recipients will also benefit from an AU$13.20 rise to AU$629.50. On the other hand, Parenting Payment Singles recipients will receive an extra AU$18.20 to AU$874.10.
The maximum rent assistance will increase to AU$145.80 for singles and up to AU$193.62 for families.
Bottom line
Despite an expected surge in public debt over the AU$1 trillion mark, the Federal government increased the payments. The 2.1% increase in payments will cost the Federal government an extra AU$2.2 billion, which is the highest since 2013.
