From July 1, 2024, over two million Australians will see an increase in their welfare payments, thanks to the latest quarterly round of indexation to income and asset thresholds. This adjustment aims to help families and individuals manage the rising cost of living.
Welfare Payments Increased
The changes will impact approximately 1.3 million families across five key welfare schemes: Family Tax Benefit (Parts A and B), the Multiple Birth Allowance, Newborn Supplement, Stillborn Baby Payment, and the Essential Medical Equipment Payment.
Family Tax Benefit (Part A and B)
The Family Tax Benefit (FTB) is a key scheme designed to assist families with the cost of raising children. The latest changes bring significant increases to both Part A and Part B payments.
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Family Tax Benefit Part A:
- For children under 13 years old: The maximum rate of payment will increase by $8.68, bringing the total to $222.04 per fortnight.
- For children aged 13 years old or over: The payment will rise by $11.34, making the maximum $288.82 per fortnight.
Family Tax Benefit Part B:
- For families with the youngest child aged under five years old: The maximum rate of payment will increase by $7.42, totaling $188.86 per fortnight.
- For families with the youngest child aged five years old or over: The increase will be $5.18, resulting in a maximum of $131.74 per fortnight.
In addition to these increases, the end-of-year supplements for FTB Parts A and B will also see a rise. Part A will increase by $36.50 to $916.15, and Part B will increase by $18.25 to $448.95.
Multiple Birth Allowance
The Multiple Birth Allowance provides extra support to families with multiple births. The recent changes include:
- For triplets: The allowance will increase from $184.38 to $191.94.
- For quadruplets or more: The allowance will rise from $245.70 to $255.78.
Newborn Supplement and Stillborn Baby Payment
The Newborn Supplement and Stillborn Baby Payment are vital supports for families welcoming a new child or dealing with the loss of a child. These payments will also see significant increases:
- Newborn Supplement: An increase of $79.17, bringing the total to $2003.82 for the first child.
- Stillborn Baby Payment: An increase of $165.93, raising the payment to $4225.10.
Essential Medical Equipment Payment
The Essential Medical Equipment Payment helps families with the additional costs of running essential medical equipment at home. This payment will increase by $8, bringing the total to $191.
Impact on Pensions and Thresholds
Nearly one million recipients of the Age Pension, Disability Support Pension, and Carer Payment will benefit from increased income and asset thresholds, allowing them to earn more before their payments are affected. This change will provide additional financial security to pensioners and carers, helping them manage their finances more effectively.
Deeming thresholds, which affect how income from financial investments is assessed for social security purposes, will also be indexed. This adjustment provides further support for eligible pensioners and other income support recipients.
Government’s Perspective
Minister Rishworth highlighted the importance of these increases, stating, “Indexation delivers timely boosts to people receiving family payments and pensions. These increases will provide a direct boost to fortnightly payments for families.” The government’s decision to adjust these payments reflects a commitment to supporting families and individuals in navigating the economic challenges posed by inflation and the rising cost of living.
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Checking Eligibility and Payment Increases
To determine if you are eligible for these increased payments, review your current welfare scheme enrollment and payment details. Here is a summary of the key increases:
- Family Tax Benefit Part A:
- Under 13 years: $222.04 per fortnight.
- 13 years and over: $288.82 per fortnight.
- Family Tax Benefit Part B:
- Youngest child under 5: $188.86 per fortnight.
- Youngest child 5 and over: $131.74 per fortnight.
- Multiple Birth Allowance:
- Triplets: $191.94.
- Quadruplets or more: $255.78.
- Newborn Supplement: $2003.82 for the first child.
- Stillborn Baby Payment: $4225.10.
- Essential Medical Equipment Payment: $191.
Conclusion
The increased welfare payments, effective from July 1, 2024, provide much-needed relief to millions of Australians. By adjusting the income and asset thresholds and increasing payments across various schemes, the government aims to support families and individuals in coping with financial pressures. If you are currently receiving any of these payments, you can expect to see these increases reflected in your upcoming disbursements, providing additional financial support to meet your needs.
