The 2025 Federal Budget has yet to introduce any plans to raise Centrelink payments.
While the Labor government has allocated billions of dollars toward various initiatives such as HECS debt relief, cheaper medicines, childcare subsidies, and energy rebates, there will be no additional funding directed toward the millions of Australians who rely on social support payments from Services Australia.
Public Opinion on Centrelink Payment Increases
A recent survey conducted by Yahoo Finance, with more than 3,600 respondents, revealed that 40% of participants supported an increase to Centrelink payments. Many Australians feel that the current assistance is inadequate, especially in light of rising living costs.
The Need for an Increase in JobSeeker Payments
According to Marion Bennett, Executive of Practice, Evidence, and Impact at Mission Australia, JobSeeker payments are in urgent need of an increase. She shared with Yahoo Finance, “We are seeing a significant rise in the number of people seeking assistance from us compared to previous years.”
Bennett explained that the cost of living has placed tremendous strain on those relying on welfare payments, making it exceedingly difficult to manage essential expenses such as rent, utility bills, food, medical and dental expenses. Many individuals are now forced to skip meals to cover their living costs.
JobSeeker Payment Recipients
More than 800,000 Australians are currently receiving JobSeeker, which is the second-largest group of Centrelink recipients after those on the Age Pension.
The Economic Inclusion Advisory Committee recently supported the idea of increasing JobSeeker payments to 90% of the Age Pension, which would raise the daily payment from $56 to $74.
Proposed Payment Increase: What Would It Mean?
Both Mission Australia and the Australian Council of Social Services (ACOSS) are advocating for an increase in Centrelink payments.
The Economic Inclusion Advisory Committee report argues that JobSeeker payments consistently fail to meet essential living standards, contributing to severe hardship for the most vulnerable Australians.
The committee suggests that a substantial increase in these payments could bring about several positive outcomes:
| Benefits of Increasing Centrelink Payments | Details |
|---|---|
| Improved National Well-Being | Enhancing financial security for vulnerable Australians |
| Reduced Government Spending | Lower reliance on emergency services and welfare assistance |
| Better Mental Health | Reducing stress and anxiety associated with financial insecurity |
| Enhanced Access to Medical Care | Enabling recipients to afford necessary treatments, improving health outcomes |
| Increased Educational Participation | Allowing families to access educational opportunities and improve long-term prospects |
Recent Indexation of Centrelink Payments
Some Centrelink payments recently received small increases as part of the regular twice-yearly indexation, aimed at keeping pace with inflation. However, these incremental adjustments have been widely criticized as insufficient.
Recipients’ Frustration with Insufficient Increases
Several Centrelink recipients have expressed frustration with the modest increase in their payments. Damien, a JobSeeker recipient from Perth who has been on the program for over five years, voiced his dissatisfaction with the $3.10 increase every two weeks.
“It’s not enough to keep up with the cost of living,” Damien told Yahoo Finance, noting that the increase barely covers the cost of a litre of milk.
Similarly, Linda, who relies on the disability support pension, called the $3.50 increase a “bloody insult.” Trudi, a disabled pensioner living in government housing, expressed anger, stating that every time her payments rise, so does her rent, leaving her with nothing more than a “token” increase.
Indexation Affects Multiple Payments
The recent indexation adjustment, which impacted various Centrelink payments, includes JobSeeker, the Age Pension, ABSTUDY, Commonwealth Rent Assistance, the Disability Support Pension, and the Carer Payment. Despite these increases, many recipients believe the changes fall short of addressing the ongoing financial strain they face.
While the 2025 Federal Budget has allocated significant resources to other areas, Centrelink recipients remain disappointed by the lack of substantial increases to their payments. With the rising cost of living, JobSeeker and other welfare payments are insufficient to meet the basic needs of millions of Australians.
Advocacy groups such as Mission Australia and the Australian Council of Social Services continue to push for more significant reforms to ensure financial security for vulnerable individuals. Until then, many recipients will continue to face severe hardship in their daily lives.
FAQs
Why is there no increase to Centrelink payments in the 2025 Federal Budget?
The 2025 Federal Budget has not allocated additional funds to increase Centrelink payments, despite significant investments in other sectors such as healthcare and education.
What is the proposed increase to JobSeeker payments?
The Economic Inclusion Advisory Committee recommends increasing JobSeeker payments to 90% of the Age Pension, raising the daily payment from $56 to $74.
How much have Centrelink payments increased recently?
Centrelink payments have seen minor increases of a few dollars as part of regular indexation to keep pace with inflation, though many recipients feel these increases are insufficient.
What are the main issues faced by Centrelink recipients?
Centrelink recipients, particularly those on JobSeeker and the disability support pension, struggle with the high cost of living, including rent, utilities, food, and healthcare. Many report skipping meals or going without essentials to make ends meet.