Inflation prompts welfare increase
ALMOST one million Australians are set to receive an increase in their welfare payments next year.
The government will on Monday announce the largest indexation increase to payments for young people in over two decades.
From January 1, the basic rate of Youth Allowance for singles will go up by at least $19.10 a fortnight, with the maximum figure an extra $32.40 a fortnight. This means, for singles, the maximum rate will increase to $569.80 a fortnight.
Those with dependent children can expect a boost of $41.40 to $729.60 per fortnight for singles and an increase of $35.20 for partnered recipients.
Austudy rates will go up between $32.40 and $41.40 a fortnight.
The increase is part of the routine indexation that occurs each January to keep up with changes in inflation.
The Reserve Bank of Australia has forecast inflation to peak at 8 per cent by the end of 2022.
Youth and student payments will be indexed by 6.1 per cent.
Social Services Minister Amanda Rishworth said the increase would help lessen the strain of the cost of living crisis.
“We need to ensure students and young people can cover basic costs while focusing on their studies and career aspirations,” she said.
Those under 21 without children receiving Disability Support Pension will receive increases of $27.40 to $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.