Jobseeker, pension to increase from September 20 following indexation

More than five million Australians will get a fortnightly cash boost as social security payments are indexed from September 20.

The maximum rate of Jobseeker Payment for a single recipient without children is set to climb by $16.20 to $833.70 per fortnight, while those on a pension will see the maximum rate increase by $36.80 for singles and $55.60 for couples.

Fortnightly Parenting Payments will increase by $20.90 to $1,087.20 for singles, or an increase of $14.80 to $763.00 for partnered recipients.

Social Services Minister Tanya Plibersek said the increased payments would benefit those who needed it most.

“Whether it’s paying the rent, putting food on the table or covering everyday bills, this extra support will help Australians on income support make ends meet,” Ms Plibersek said.

“We’ll continue to make sure the system is there to support those who need it most, ensuring that everyone can make ends meet and no one gets left behind.”

Rates and means-testing thresholds are indexed twice a year in Australia, typically in March and September, to ensure social security payments are aligned with cost of living benchmarks like the Consumer Price Index.

Alongside the rate increases, the federal government has accepted the Australian Government Actuary (AGA) recommendation to lift social security deeming rates.

Deeming rates are used to “work out income from financial assets” for the purpose of the social security means test, according to the Department of Social Services.

The assessment is designed to ensure government support is being directed at those who need it most.

From September 20, the deeming rate will be updated to 1.75 per cent for financial assets up to $66,800 for singles, and $110,600 for couples with a rate of 3.75 per cent for any financial assets above the threshold.

Originally published as Jobseeker, pension to increase from September 20 following indexation