Australia’s Centrelink Cost of Living Payment 2025: Revised Amount & Eligibility Details

In 2025, the Australian government continues to support citizens who are grappling with the rising costs of living.

Although the Cost of Living Payment ended on June 30, 2023, other welfare benefits have been adjusted through indexation to ensure that essential payments such as pensions, allowances, and family benefits reflect the current economic conditions.

These adjustments, set to take effect from March 20, 2025, are designed to help Australians manage inflation and the increased costs of living.

Australia Centrelink Payment Increases for 2025

Despite the discontinuation of the Cost of Living Payment, the Australian government’s ongoing commitment to assist citizens is evident through the increases in various Centrelink payments.

The following welfare payments will be raised to help individuals cope with the financial pressures caused by inflation:

Payment Type Overview

Payment Type	Previous Fortnightly Rate	Increase Amount	New Fortnightly Rate	Eligibility Criteria
Age Pension (Single)	$1,144.40	$4.60	$1,149.00	Australians aged 67 and over, meeting residency and income/asset tests.
Age Pension (Couple, each)	$862.60	$3.50	$866.10	Couples aged 67+, meeting combined income and asset tests.
JobSeeker (Single, no children)	$786.80	$3.10	$789.90	Unemployed individuals aged 22+ actively seeking work.
Parenting Payment (Single)	$1,026.30	$4.00	$1,030.30	Principal carers of young children, mainly single parents.
Family Tax Benefit Part A	Varies per child	Up to $7.90	Varies	Families with dependent children, based on income and child age.
Family Tax Benefit Part B	Varies	Up to $5.40	Varies	Single-parent or one-income families with young children.

Why Were Centrelink Payments Increased?

The Centrelink payment increases for 2025 stem from Australia’s biannual indexation process. This ensures that welfare payments remain aligned with inflation and the rising cost of living. Every March and September, payments are adjusted based on three key indicators:

1. Consumer Price Index (CPI) – Measures the cost changes for essential goods and services.
2. Average Weekly Earnings – Tracks wage trends across the country.
3. Pensioner and Beneficiary Living Cost Index (PBLCI) – Monitors the cost of living changes for welfare recipients.

These indexation adjustments help ensure that welfare recipients retain purchasing power despite the changing economic landscape.

Detailed Breakdown of Centrelink Payment Increases

1. Age Pension
   • The Age Pension supports older Australians in retirement. From March 20, 2025:
     • Single pensioners will receive $1,149.00 per fortnight, an increase of $4.60.
     • Couples (each) will receive $866.10 per fortnight, an increase of $3.50.
     • This increase helps seniors cover essential costs like housing, healthcare, and daily living expenses.
2. JobSeeker Payment
   • The JobSeeker Payment supports Australians who are unemployed and actively looking for work:
     • Single recipients without children will now receive $789.90 per fortnight, an increase of $3.10.
     • Single recipients with children will receive $850.20 per fortnight, an increase of $3.60.
     • These increases aim to assist job seekers in managing daily living expenses while they look for work.
3. Parenting Payment
   • The Parenting Payment assists primary carers of young children:
     • Single parents will now receive $1,030.30 per fortnight (+$4.00).
     • Partnered parents will receive $700.10 per fortnight (+$3.00 each).
     • These payments provide much-needed financial relief to families raising young children.
4. Family Tax Benefits
   • Family Tax Benefit Part A will increase by up to $7.90 per fortnight per child.
   • Family Tax Benefit Part B will increase by up to $5.40 per fortnight.
   • These payments are designed to support families with the costs of raising children.

Who is Eligible for These Centrelink Payments?

Eligibility for Centrelink payments varies depending on the specific type of payment, but common eligibility requirements include:

• Residency: You must be an Australian citizen or permanent resident.
• Income and Asset Tests: If your income or assets exceed certain thresholds, your payments will be reduced.
• Age: Some payments, such as the Age Pension and JobSeeker, have specific age requirements.
• Parental Responsibilities: For Family Tax Benefits and Parenting Payments, you must have dependent children.

How to Apply for the Australia Centrelink Cost of Living Payment 2025?

If you believe you qualify for a Centrelink payment, follow these steps:

1. Check Your Eligibility: Use the Centrelink Payment Finder tool to confirm which payments you qualify for.
2. Set Up a MyGov Account: Log in or create a MyGov account for easy application processing.
3. Submit Your Claim: You can apply online through MyGov or visit a Centrelink office.
4. Provide Supporting Documents: You may need to submit proof of identity, income statements, or medical documents.
5. Wait for Processing: It typically takes 2–4 weeks for your application to be processed.

Other Financial Assistance Available in 2025

In addition to increased Centrelink payments, there are other forms of government support available to Australians in 2025:

• Energy Bill Relief: Eligible households may receive energy rebates of up to $500.
• Rent Assistance: Renters may receive additional payments of up to $600 annually.
• Concession Cards: Pensioner Concession Cards and Health Care Cards provide discounts on utilities, transport, and medicine.

FAQs

What is the Centrelink Cost of Living Payment in 2025?

The Centrelink Cost of Living Payment ended in June 2023, but other payments like Age Pension, JobSeeker, and Family Tax Benefits have been increased in 2025 to help manage rising living costs.

Who qualifies for the increased payments in 2025?

Eligibility varies by payment type but generally includes Australian citizens or permanent residents, with income and asset tests affecting eligibility for payments like Age Pension, JobSeeker, and Parenting Payment.

How can I apply for a Centrelink payment?

To apply, use the Centrelink Payment Finder to check your eligibility, then submit your claim online through MyGov or visit a Centrelink office for assistance.

Are there any other government assistance programs in 2025?

Yes, in addition to Centrelink payments, Australians can access energy bill relief, rent assistance, and concession cards for discounts on various services.