Pensioners to get cash boost in upcoming July indexation

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.


compressed-senior-couple-analyzing-their-savings-while-going-through-home-finances.jpeg
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.
Key Takeaways
  • Over 2 million Australians will receive an increase in government payments due to indexation from July 1.
  • Families, pensioners, and those on certain social security benefits will see a boost in their fortnightly payments.
  • The increase comes as part of the government's commitment to assist with the cost of living and inflation pressures.
  • Key benefits affected include the Family Tax Benefit, Age Pension, Disability Support Pension, and Carer Payment are also set to increase.
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!
 
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Old-age Pensions, for those allowed to have them, have been below the poverty line for considerable time (30 yeas at least, perhaps): the CPI indexation of OA Pensions does nothing to change that.

Keating's desire to means-test the OAP back in 1984-85 has quite probably led to a good number of my now ancient peers investing in rental housing back in the day when house prices were no more than 2-3 years of one's pre-tax salary. That is one reason why there is a shortage of low-cost rental housing; the rent is our pension and one needs 3-4 houses to get a post-tax/costs income higher than the poverty line. Yes, there is a capital gain on paper when compared with the original price 20-40 years ago, but those properties go to one's kids who need a leg-up these days. It is a self-repeating cycle of disaster for many low-income families.

The other factor feeding the housing crisis is that, as did Madame Thatcher of UK infamy, Australian governments have sold off Housing Commission houses (publicly-owned housing) and have not replaced what has been sold by building new houses. Again in Pomgolia, pre-Thatcher governments, both Labour and Tory, were building public housing at around 200 000 per year, kicked off by Attlee's Labour Gov't in 1945 when the country was near bankrupt (1 million houses between 1945 and 1951).

Australia never fails to disappoint.
 
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My apologies to all, I am indeed on the wrong website.
I googled "what is the new indexation rate for the age pension from 1st July" and that was what it showed me. Unfortunately I didn't take note of the date on the bottom of the article, which was March.
I should have known better than to think they would be that generous.
I don't understand why SDC even gave us that article.
Why would we be interested inTaxA and TaxB increases and why tell us to look on the website when there were no rises for us.
Once again folks, my apologies for building up your hopes.
I, myself, should learn to read the article properly.🤦
 
HELLO, WAKEY WAKEY Why on earth don't you people do as suggested and go to the website and READ.
The aged pension will increase
on the 1st July, along with carer and disability pensions by $19.60/ft for singles and $29.40 for couples. Not too bad considering we will get another one in September.
Yes but it will be all taken up like usual as businesses will put up their prices, super markets will put up their prices like they always do and make out it's because of a war somewhere and wage increases
 
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I am on aged pension and my wife isn't therefore I get half of what couples get i.e $14.70 per fortnight.
My little
Well, I've looked at the website and READ it, and I'm b******d If I can find anything that says $19.60 for single and $29.40 for couples. ???
Found changes for people who are still working part time and for those who have so much $$$ in assets that they only qualify for a part-pension. But I can't find nothing about people who are on a full pension !
mylittltibbies….. can you show all of us the document that said pensioners are getting an increase $29.40 for couples. I think you have been ill informed…Even my gov or Centrelink have not indicated this..
 
i got a message that states you are angry with my comment and yet you say the same thing as me virtually
i cannot find anything which states pensioners the disabled and carers are getting anything
MYLITTLETIBBIES MUST BE LOOKING AT A DIFFERENT SITE
She has admitted she got it wrong...after telling us all off 🤣
We all wish she was right but no. We got nothing out of this pathetic wage-earner positive, pensioner-negative budget. They should all hang their heads in Shame! But they won't. If I could get this 75 year old body working again, I would be a single mother as they seem to get a lot of presents from the Govt. I got zero to have mine.
 
Iam n
The albanese govt has no idea about the realities of living on a pension..it's a standing joke surely..but there's no funny side. As for rent increase lol..it's increased to 440 per week we moved in 3 years ago at $360.00 a week???? Funny funny funny..not..the rent increase alone is a joke..but I'm still not laughing..this situation with rents is becoming our biggest problem ever..and I can't move because of a lack of housing??????????sick of their pandering and wasting money on stupid issues like vapes that will eventually just be the same as booze and cigarettes but they keep bringing the subject up and wasting money on a fluff problem..get real mate..like that stupid polly that tried to live on a pension amount for a week..hilarious he had free transport..free food..free everything..wish I could remember the idiots name..so no none of them have the faintest idea what it's really like.. yeh there's increases but do they really have a major impact money wise..no...in saying this I also realise that each one of us has different concerns and issues..that need to be met..
I am not commenting in support of your landlord, but these figures below are food for thought/argument.

Assume 100sqm weatherboard house on 650sqm, $440 per week..
Rent per year. $22 880
Rates per year. Approx $2 000
Water supply per year. Approx $1 000
Landlord insurance per year. Around $800 per year.
Land tax per year. Approx. $1 500. per year
Real state fees between 5-7%, say $1 000 per year.
Repairs/smoke alrms . Allow $3 000 per year, ignoring need for painting house and roof and replacing H/W cylinder and possibly kitchen stove every 7 years.
Total costs $9500pa ballpark number
Leaves $13,800.
If your landlord owns 4 such houses, that is a pre-tax income of $53 520. That is below the present poverty line, although my wife and I could live on it, just, given our own bills to pay.

Assume those 4 houses sell for $550 000, total sale achieves $2.2 million less real-estate fees. I don't what they are but let's say $200 000. Let's assume your landlord bought those houses for $70 000 each in 1993, that is a capital gain of $1 720 000; half that is $860 000 taxed at 45% or $387 000, leaving $1.333 million.
At 5% in a fixed-term deposit that is just a wee bit more than $65 000 per year, $13000 more than the income after rent.

But the landlord's 4 kids won't be able to inherit those 4 houses and by the time the landlord and his wife dies, that $1.333 million capital in the bank won't buy 4 houses, even if might buy 2.

I'm no advocate for your landlord, and my numbers will vary from State to State and from suburb to suburb, and anyone can play with them . It's ballpark stuff with approximations. The best result as far as I am concerned would be that Australian government re-engages with building significant numbers of "social housing", (around 200 000 per year), increases top-level income tax to 60% and re-graduates the present system accordingly; and perhaps even removes capital-gains tax on "investment" housing so as to encourage landlords to take their post-inflation adjusted profit and get out of earning their income from housing. However, I doubt if it would get me elected, let alone pre-selected, as MP by any political party.
 
Iam n

I am not commenting in support of your landlord, but these figures below are food for thought/argument.

Assume 100sqm weatherboard house on 650sqm, $440 per week..
Rent per year. $22 880
Rates per year. Approx $2 000
Water supply per year. Approx $1 000
Landlord insurance per year. Around $800 per year.
Land tax per year. Approx. $1 500. per year
Real state fees between 5-7%, say $1 000 per year.
Repairs/smoke alrms . Allow $3 000 per year, ignoring need for painting house and roof and replacing H/W cylinder and possibly kitchen stove every 7 years.
Total costs $9500pa ballpark number
Leaves $13,800.
If your landlord owns 4 such houses, that is a pre-tax income of $53 520. That is below the present poverty line, although my wife and I could live on it, just, given our own bills to pay.

Assume those 4 houses sell for $550 000, total sale achieves $2.2 million less real-estate fees. I don't what they are but let's say $200 000. Let's assume your landlord bought those houses for $70 000 each in 1993, that is a capital gain of $1 720 000; half that is $860 000 taxed at 45% or $387 000, leaving $1.333 million.
At 5% in a fixed-term deposit that is just a wee bit more than $65 000 per year, $13000 more than the income after rent.

But the landlord's 4 kids won't be able to inherit those 4 houses and by the time the landlord and his wife dies, that $1.333 million capital in the bank won't buy 4 houses, even if might buy 2.

I'm no advocate for your landlord, and my numbers will vary from State to State and from suburb to suburb, and anyone can play with them . It's ballpark stuff with approximations. The best result as far as I am concerned would be that Australian government re-engages with building significant numbers of "social housing", (around 200 000 per year), increases top-level income tax to 60% and re-graduates the present system accordingly; and perhaps even removes capital-gains tax on "investment" housing so as to encourage landlords to take their post-inflation adjusted profit and get out of earning their income from housing. However, I doubt if it would get me elected, let alone pre-selected, as MP by any political party.
As an ex landlord I hear you.
I was extremely lucky not to have a mortgage but good tenants are hard to come by and it just wasn't worth the stress.
Landlords should be grateful if they have a good tenant, take care of them and keep rents at a reasonable rate.
 
I'm on a carers , my son is on disability, any increase to pensions will go straight to SAHT, who increase rent as soon as pensions increase. Whatever the rise is, we will get nothing.
 
it doesn't matter how much people get it still won't be enough with things so expensive ,,,those businesses that now have to pay their employees a wage rise will just up their products,,,I remember years ago we grew some small fruits and a guy had a roadside shed he sold produce from,,he wanted some fruit so I told him the price,,,He said it doesn't matter how much they were he would still put his price on them and that is the way things are now,,,every one suffers because those people will want to recoup the extra paid out in wages and such
 
The pension increase was the one that was paid in May 2024, the July 2024 is to do with the increase in amount that pensioners will be allowed to earn before it impacts on their pension, no increase as such, just benefits pensioners who are earning and can earn more before their pension is impacted, nothing for pensioners who are NOT working or earning some extra money. This is my understanding of what I read.
Correct me if I am wrong.
 
To have an increase is Fine. However, as usual Businesses Utilities and more, will jack Up their prices and we're back to Square One. 'Something Must Change' to maintain value and a decent life.
 
As an ex landlord I hear you.
I was extremely lucky not to have a mortgage but good tenants are hard to come by and it just wasn't worth the stress.
Landlords should be grateful if they have a good tenant, take care of them and keep rents at a reasonable rate.
"....and it just wasn't worth the stress.....". Definitely an important disincentive, given a rent below $600 per week and the chances of getting decent tenants. I gather Old Age Pensioners get about $100 per week rental assistance?
 
i got a message that states you are angry with my comment and yet you say the same thing as me virtually
i cannot find anything which states pensioners the disabled and carers are getting anything
MYLITTLETIBBIES MUST BE LOOKING AT A DIFFERENT SITE
Hi Mitchell. The reply I put in was supposed to be for MYLITTLTIBBIES not for you. ( apologies)…Yes I couldn’t find anything about any increase for pensioners. I really think pensioners( baby boomers) are being ripped off again. If it’s good enough for low income earners getting rises and Tax Cuts to keep them off poverty line, the politicians should be thinking of baby boomers who didn’t have luxury of employer super contributions until 1991, and myself, after paying taxes for 50 years get to enjoy our retirement on poverty payments..The taxpayers of this generation WILL have the opportunity to have decent super funds when they retire..Lets all hope some sanity will prevail for the baby boomers.
 
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Me too. I will believe it when the ( increase ) is in my bank account.....How much ??
 
The pension increase was the one that was paid in May 2024, the July 2024 is to do with the increase in amount that pensioners will be allowed to earn before it impacts on their pension, no increase as such, just benefits pensioners who are earning and can earn more before their pension is impacted, nothing for pensioners who are NOT working or earning some extra money. This is my understanding of what I read.
Correct me if I am wrong.
Your correct.
 
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Anyone who falls for this crap deserve to be had
Cpi doesn't give you an increase it keeps you level
But in reality you will go further behind because as wages etc go up so do cost of things to cover the increases.
I think MY LITTLE TIBBIES must be telling him PORKY'S !!!
Forgive my ignorance but what are TIBBIES Porkies I get but TIBBIES. ??
 
It's not much of an increase for pensioners. I just hope the aged pension is still around when I retire.
 

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