These alterations are intended to align with economic payments due to ongoing inflation. Support payments such as the Age Pension, JobSeeker, Disability Support Pension, and Carer Payment will experience enhanced payment rates along with revised financial asset evaluations.
Increased Payment Rates To Assist With Soaring Inflation
Centrelink recipients will receive increased payment rates starting September due to essential living expenses. Age Pension single recipients will receive approximately $29.70 more per payment period and couples will receive 22.40 more per payment period. Proportionate increases will also be made to Jobseeker Payment, Disability Support Pension, and Carer Payment recipients. These measures are a part of the government’s indexation policy which revisits payment provisions every six months and aims to adapt them to inflation and the increased cost of housing, food, and healthcare.
| Payment Type | Payment Increase | Effect of Deeming Rate Change |
|---|---|---|
| Age Pension (Single) | $29.70 per fortnight | Potential reduction for asset holders |
| Age Pension (Couple) | $22.40 per fortnight | Potential reduction for asset holders |
| JobSeeker Payment | Proportional increase | Potential reduction for asset holders |
| Disability Support Pension | Proportional increase | Potential reduction for asset holders |
| Carer Payment | Proportional increase | Potential reduction for asset holders |
Increases In The Deeming Rate Will Impact The Income Generated By Assets
As a result of the government’s proposed increase in payments, the deeming rates, the income from financial assets like savings and superannuation, will be set to increase. The lower deeming rate which applies to assets not greater than $64,200 for an individual and $106,200 for a couple will increase from 0.25% to 0.75%. The upper deeming rate which applies to the assets beyond these figures will also increase from 2.25% to 2.75%. As a result of these changes, recipients holding considerable financial resources will likely incur a loss of their Centrelink payments due to the deemed income from assets.
Effects On Centrelink Users
The increase in payments will no doubt be a much welcome form of relief to many struggling Australians battling the impacts of inflation. CAre must be taken, however, to those that have considerable quantites of financial assets as the increase in deeming rates will negatively impact them. An estimated 460,000 pensioners and an equal number of other payment recipients are likely to be impacted due to the changes in deeming rates.
Beneficiaries should evaluate their finances and consider consulting an expert if necessary. Services Australia features online calculators and dedicated phone lines to assess payments.