The new financial year has officially kicked off, and millions of Australians receiving government support are already experiencing significant changes to their Centrelink payments. From July 1, 2025, approximately 2.4 million Australians will see more money in their bank accounts thanks to a 2.4% increase across most welfare payments, marking one of the most comprehensive updates to the social security system in recent years.
The 2.4% Payment Boost: What It Means for Recipients
The 2.4% increase ensures payment rates and thresholds keep pace with the cost of living, maintaining the social security system as a reliable safety net for Australians. This adjustment reflects the government’s response to rising inflation and cost-of-living pressures that have impacted households across the nation.
Social Services Minister Tanya Plibersek emphasized the importance of these changes, stating: “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 cost of living rises.”
Age Pension: Enhanced Support for Older Australians
Single Age Pensioners now receive up to $1,116.30 per fortnight, representing a meaningful increase from previous rates. The income-free area for maximum pension payment increases by $6 to $218 a fortnight for singles, and by $8 to $380 per fortnight for couples.
For asset thresholds, single homeowners can now have up to $321,500 in assets, while non-homeowners get a more generous $579,500 threshold — up $7,500 and $13,500 respectively. These adjustments mean more Australians may qualify for partial or full pension payments.
JobSeeker and Youth Payments: Increased Support for Job Seekers
JobSeeker recipients across different categories are experiencing notable increases:
- Single recipients without children: Increased by $3.10 to $789.90 per fortnight
- Single recipients with children: Increased by $3.30 to $819.90 per fortnight
- Partnered recipients: Increased by $2.80 each to $715.10 per fortnight
The disqualifying income limit for single JobSeeker recipients now stands at $2,516 per fortnight, and for couples at $3,844.40, allowing recipients to earn more before their payments are affected.
Family Tax Benefit: More Support for Australian Families
Families across Australia are receiving enhanced support through increased Family Tax Benefit rates:
Family Tax Benefit Part A:
- Children aged under 13: $227.36 a fortnight, an increase of over $36 since Labor first took office
- Children aged 13 or over: $295.82 a fortnight
Family Tax Benefit Part B:
- Maximum rate increases to $193.34, an increase of over $30 since May 2022
- For families with a youngest child aged five or over: $134.96 a fortnight
Parental Leave Pay: Major Expansion for Working Parents
One of the most significant changes is the expansion of Paid Parental Leave. From 1 July 2025, eligible parents will benefit from extended paid leave: Parental Leave Pay is increasing from 20 to 24 weeks (110 days to 120 days).
Additionally, new rules include 12% superannuation contributions paid by the government alongside Parental Leave Pay, providing long-term financial security for new parents.
The disqualifying income limit for Paid Parental Leave rises to $180,007 for individuals, and $373,094 for families, allowing more working parents to access government-funded leave.
Parenting Payment: Enhanced Support for Single Parents
Single parents receiving Parenting Payment see an increase of $4.00 to $1,030.30 per fortnight, while partnered parents receive an increase of $2.80 to $701.10 per fortnight.
For single parents receiving Parenting Payment, the income-free area increases by $4 to $224.60 per fortnight, allowing parents to earn more without affecting their payments.
Energy Bill Relief: $150 Electricity Rebate
As part of the government’s effort to ease energy bills, eligible households now receive a $150 electricity rebate. This payment is not delivered via Centrelink, but rather applied directly to your energy account by your provider.
This initiative comes at a crucial time, as electricity prices are due to rise in NSW, Victoria, south-east Queensland, South Australia and the ACT, with default electricity prices rising by over 9 per cent in some cases.
Minimum Wage Increase: Supporting Australia’s Lowest-Paid Workers
Complementing the Centrelink increases, Australia’s lowest-paid workers will receive a pay boost from 1 July, with the national minimum wage increasing by 3.5 per cent to $24.95 per hour, or $948 per week, based on a 38-hour week.
How the Changes Are Applied
The best news for recipients is that the increase is applied automatically, so no need to reapply or fill in new forms. Services Australia will automatically apply the new rates to your next eligible payment.
Checking Your Updated Payments
To verify your new payment rates:
- Log in to your MyGov account and check for your updated payment rate
- Contact Centrelink directly through the Services Australia website
- Monitor your bank account for the increased amounts
Debunking Payment Myths
There has been speculation online about a $720 or $750 one-time Centrelink bonus in July 2025. However, these claims are not confirmed by Services Australia or any official source. Recipients should always verify information through official channels.
Student Loan Relief: HECS-HELP Changes
Those with student loans will be able to earn slightly more before having to pay back their HELP debt. While the threshold was $54,435 in 2024-25, in the new financial year, only those earning above $67,000 will have to make payments.
Looking Ahead: The Indexation Process
Centrelink payments are reviewed and potentially increased twice a year, in March and September, through a process called indexation. This policy directly assists Australians who depend on welfare to handle daily expenses such as rent, groceries, and utility bills.
The 2.4% rise in July 2025 reflects this process, ensuring payments stay in line with inflation, providing ongoing protection against cost-of-living increases.
What Recipients Should Do Now
- Check your myGov account to confirm your new payment rates
- Update your details if you’ve moved or changed banks
- Review your eligibility for additional payments you may not be receiving
- Budget with your increased payments to maximize the benefit
The Bottom Line
While the Centrelink increase in July 2025 may seem modest, every extra dollar counts, especially for families, pensioners, and carers dealing with rising food, rent, and energy costs. The Centrelink Payments updates are all about staying ahead of rising costs and giving families and pensioners a bit more breathing space.
These changes represent the government’s commitment to maintaining a robust social safety net while addressing the real financial pressures facing Australian households. With automatic application of increases and expanded eligibility thresholds, millions of Australians can look forward to improved financial support as they navigate the challenges of 2025.