Millions of Australians will soon see an increase in their Centrelink payments, starting on 1 July 2025. The government is adjusting key welfare payments to help ease the burden of the increasing cost of living.
These changes are part of Services Australia’s regular indexation process to ensure that welfare benefits keep pace with inflation.
Who Will Benefit from the Centrelink Increase?
The Centrelink payment increase will benefit a wide range of recipients, including families, pensioners, carers, and people with disabilities.
Approximately 2.4 million people are expected to see an increase in their payments, with the changes affecting various welfare benefits, such as:
- Family Tax Benefit Part A and Part B
- Newborn Supplement
- Multiple Birth Allowance
- Age Pension
- Disability Support Pension (DSP)
- Carer Payment
Additionally, the income and asset test limits for these payments will also be raised, which means that more individuals may qualify for support or receive a larger amount.
How Much Will Centrelink Payments Increase?
Services Australia has confirmed the following updated rates for July 2025:
Family Tax Benefit Part A
- New Maximum Rate: $227.36 per fortnight
- Increase: $5.32
- For children aged 13 or over: $295.82, an increase of $7
Family Tax Benefit Part B
- New Maximum Rate: $193.34 per fortnight
- Increase: $4.48
- For children over age 5: $134.96
Why Is Indexation So Important?
Indexation is a crucial process that helps maintain the fairness of welfare payments. It ensures that these payments accurately reflect current living costs and help support recipients in times of inflation. As stated by Services Australia:
“From 1 July, millions of recipients of social security payments will see more money in their bank accounts. Payments like the Family Tax Benefit help cover the costs of raising children for many Australian families, and indexation is a crucial way to help families when the cost of living rises.”
When Will the Updated Centrelink Rates Begin?
The new Centrelink payment rates will take effect on Monday, 1 July 2025. No action is required from recipients, as Services Australia will automatically apply the new rates to their next eligible payment.
To check your payment details, simply log in to your myGov account or visit the Services Australia website for more information.
Need Assistance Understanding Your Payments?
If you are unsure how the changes will affect your payment, you can:
- Visit the Services Australia website at servicesaustralia.gov.au
- Use the Payment and Service Finder
- Call the Centrelink Families Line at 136 150
While the Centrelink payment increase in July 2025 may appear modest at first glance, it offers a significant benefit to many Australians struggling with the rising costs of living.
Families, pensioners, carers, and people with disabilities will particularly feel the positive impact of this adjustment. Make sure to update your details to ensure you receive the full payment without any delays.
FAQs
How can I find out how much my Centrelink payment will be after the increase?
You can log in to your myGov account or visit the Services Australia website to check your payment details.
Will the Centrelink payment increase apply to all welfare benefits?
Yes, several common welfare benefits, including Family Tax Benefit, Age Pension, and Disability Support Pension, will see an increase.
Do I need to do anything to receive the new rates?
No, Services Australia will automatically apply the new rates to your eligible payments starting 1 July 2025.