Pensioners to get cash boost in upcoming July indexation
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As we get closer to July, Australian families and pensioners can look forward to a little extra financial breathing room. With the cost of living on the rise, the government's indexation of various payments is a welcome relief for over two million Australians.
From July 1, a range of government payments will see an increase, providing a much-needed boost to those who rely on this support.
The indexation process is an annual adjustment that ensures government payments keep pace with inflation.
This year, it's set to benefit a wide array of recipients, including families on the Family Tax Benefit, Newborn Supplement, and Multiple Birth Allowance, as well as pensioners on the Age Pension, Disability Support Pension, and Carer Payment.
For families, the numbers are looking up. Those receiving Family Tax Benefit Part A will see the maximum rate for children under 13 years old rise by $8.68 to $222.04 every fortnight.
For children aged 13 and over, the increase is even more substantial, with an $11.34 bump up to $288.82 per fortnight.
Family Tax Benefit Part B recipients aren't left out either; families with the youngest child under five years old will see their payments increase by $7.42 to $188.86 a fortnight, and those with children five years or older will receive an additional $5.18, bringing the maximum to $131.74 a fortnight.
But it's not just the fortnightly payments that are getting a lift. The end-of-year supplements for both Family Tax Benefit Part A and Part B will also see a rise, with increases of $36.50 and $18.25, respectively, bringing them to $916.15 and $448.95.
This is a significant boost that will help families manage the ever-increasing costs associated with raising children.
Pensioners will also feel the positive impact of indexation, with increases in income and asset thresholds allowing more individuals to qualify for or receive higher payments. This is crucial for those on fixed incomes, who are often hit the hardest by inflation.
Budget documents stated that 876,000 income support recipients, including 450,000 aged pensioners, would benefit from the decision.
In addition to these changes, Paid Parental Leave is set to increase, aligning with the government's commitment to pay superannuation on Paid Parental Leave from 2025 and to expand leave to 26 weeks by 2026.
The indexation of payments is part of a broader government strategy to tackle the cost of living crisis, which was a major focus of last month's Budget.
With a $7.8 billion commitment to cost-of-living relief, including a 10 per cent boost to Rent Assistance and the inclusion of superannuation in Paid Parental Leave, the government is taking concrete steps to support Australians through these challenging economic times.
Minister for Social Services Amanda Rishworth emphasised the importance of indexation, stating: ‘These increases will provide a direct boost to fortnightly payments for families.’
For those eager to see the full extent of the changes, the complete list of payments increasing on July 1, including detailed income and asset limits, can be found on the Department of Social Services website.
It's a good idea to review these changes to understand exactly how they may affect your individual circumstances.
As we all navigate the complexities of the economy, it's heartening to see measures in place that help ease the burden on families and pensioners.
So, come July, keep an eye on your payments, and remember that every little bit helps when it comes to managing the household budget.
What are your thoughts on these upcoming changes, members? Share them in the comments below!
From July 1, a range of government payments will see an increase, providing a much-needed boost to those who rely on this support.
The indexation process is an annual adjustment that ensures government payments keep pace with inflation.
This year, it's set to benefit a wide array of recipients, including families on the Family Tax Benefit, Newborn Supplement, and Multiple Birth Allowance, as well as pensioners on the Age Pension, Disability Support Pension, and Carer Payment.
Over two million Aussies will get a boost on their government payments this July. Image source: Freepik
For families, the numbers are looking up. Those receiving Family Tax Benefit Part A will see the maximum rate for children under 13 years old rise by $8.68 to $222.04 every fortnight.
For children aged 13 and over, the increase is even more substantial, with an $11.34 bump up to $288.82 per fortnight.
Family Tax Benefit Part B recipients aren't left out either; families with the youngest child under five years old will see their payments increase by $7.42 to $188.86 a fortnight, and those with children five years or older will receive an additional $5.18, bringing the maximum to $131.74 a fortnight.
But it's not just the fortnightly payments that are getting a lift. The end-of-year supplements for both Family Tax Benefit Part A and Part B will also see a rise, with increases of $36.50 and $18.25, respectively, bringing them to $916.15 and $448.95.
This is a significant boost that will help families manage the ever-increasing costs associated with raising children.
Pensioners will also feel the positive impact of indexation, with increases in income and asset thresholds allowing more individuals to qualify for or receive higher payments. This is crucial for those on fixed incomes, who are often hit the hardest by inflation.
Budget documents stated that 876,000 income support recipients, including 450,000 aged pensioners, would benefit from the decision.
In addition to these changes, Paid Parental Leave is set to increase, aligning with the government's commitment to pay superannuation on Paid Parental Leave from 2025 and to expand leave to 26 weeks by 2026.
The indexation of payments is part of a broader government strategy to tackle the cost of living crisis, which was a major focus of last month's Budget.
With a $7.8 billion commitment to cost-of-living relief, including a 10 per cent boost to Rent Assistance and the inclusion of superannuation in Paid Parental Leave, the government is taking concrete steps to support Australians through these challenging economic times.
Minister for Social Services Amanda Rishworth emphasised the importance of indexation, stating: ‘These increases will provide a direct boost to fortnightly payments for families.’
For those eager to see the full extent of the changes, the complete list of payments increasing on July 1, including detailed income and asset limits, can be found on the Department of Social Services website.
It's a good idea to review these changes to understand exactly how they may affect your individual circumstances.
So, come July, keep an eye on your payments, and remember that every little bit helps when it comes to managing the household budget.
What are your thoughts on these upcoming changes, members? Share them in the comments below!
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