Centrelink cash boost on July 1st: When changes to the minimum wage, superannuation, and paid parental leave take effect next month, millions of Australians will benefit monetarily. More than 2 million Australians will be impacted by the 3 percent increase in the minimum wage, which will take effect on July 1 and raise it from $24.10 per hour to $24.95 per hour. A new rate of $948 per week, based on a 38-hour work week, will be implemented as a result of the Fair Work Commission’s decision earlier this month.
Next month, the superannuation guarantee rate will automatically increase from 11.5 percent to 12 percent, benefiting nearly 10 million Australians. It implies that employers will contribute an additional $317 annually on average to workers’ Super accounts. Young Australians might get an extra $132,000 in Super by the time they retire.
Australians will receive a Centrelink cash boost on July 1st
Additionally, Super will begin to be paid by the federal government under its paid parental leave program. This change will take effect for parents who receive parental leave pay on or after July 1. As part of the Labor government’s plan to increase the amount of government-funded leave to 26 weeks by July of next year, the program is also growing, with the amount of leave going from 20 weeks to 22 weeks on July 1.
Additionally, starting on July 1, payments from Services Australia will be indexed, or modified to reflect inflation, by 2.4 percent. About 2.4 million Australians will be impacted by the modest increases to Paid Parental Leave, Family Tax Benefits A and B, the Newborn Supplement, and Multiple Birth Allowance.
A family that receives Family Tax Benefit A, for instance, will receive an additional $5 every two weeks. Parents of triplets will receive an additional $120 per year, while first-time parents of newborns will receive an additional $48 over 13 weeks. Social Services Minister Tanya Plibersek said indexation is a “crucial way to help families when the cost of living rises.” “There will be more money in the bank accounts of millions of people who receive social security payments,” Plibersek stated.
Millions of Aussies set to receive a wage boost
On the other hand, income thresholds and asset limits will also rise by 2.4 percent. This implies that certain Australians will lose their eligibility for Youth Allowance, Austudy, ABSTUDY Living Allowance, JobSeeker Payment, Parenting Payment, Special Benefit, and Parenting Payment Single. Youth and student payments, which are indexed annually in January, will not be affected by the July indexation.
The benefits that millions of Centrelink recipients receive will slightly increase in the coming weeks. It is part of regular indexation to ensure that payments remain current with the rising cost of living. The most recent round of indexation will benefit about 2.4 million Australians and will take effect on July 1. A range of rates, thresholds, and limits will rise by 2–4% as a result of the increase.
This includes increases in payments for families that receive the Newborn Supplement, the Multiple Birth Allowance, and the Family Tax Benefits A and B. Additionally, the Age Pension, Disability Support Pension, and Carer Payment recipients will have higher income and asset thresholds. The government’s “number one priority” is to address the pressures caused by the cost of living, according to Social Services Minister Tanya Plibersek.
“Millions of social security recipients will see more money in their bank accounts starting on July 1st,” she stated. Many Australian families rely on payments like the Family Tax Benefit to help them pay for the expenses of raising children, and indexation is a vital tool for supporting families as living expenses rise. “
What is the expected increase in Centrelink payments?
The maximum fortnightly payments for families receiving the Family Tax Benefit Part A will increase by $5.32 to $227.36 per fortnight. The rate will rise by $7 to $295.82 per fortnight for those with children 13 years of age or older. The maximum rate for families receiving the Family Tax Benefit Part B will rise by $4.48 to $193.34. The rate will rise to $134.96 for families with children older than five.
With the Newborn Supplement rising to $2,052.05, first-time parents of a newborn will receive an additional $48 over 13 weeks. For those giving birth to triplets, the Multiple Birth Allowance will rise to $196.56 per fortnight, while payments for quadruplets and beyond will increase to $261.94 per fortnight.
Additional Centerlink modifications
Payment rates for the Age Pension, JobSeeker, Youth Allowance, Disability Support Pension, and Carer Payment will not be impacted by this indexation round. There will be adjustments to the asset and income thresholds, though. Age pensioners will still be eligible for the full pension even if they earn $218 per two weeks, up $6 per two weeks. You will be able to earn a maximum of $2,516 before your pension cuts out.
