Centrelink blow for millions of Aussies as cash boost denied: 'Really tough'

Yahoo

25-03-2025

The 2025 Federal Budget has not included any measures to increase Centrelink payments. Labor has thrown billions of dollars at HECS debts, cheaper medicines, childcare subsidies and energy rebates.
However, there won't be any more money allocated to the millions of Australians receiving social support payments from Services Australia. A poll of more than 3,600 Yahoo Finance readers found 40 per cent supported an increase to Centrelink payments (40 per cent).
Mission Australia's executive of practice, evidence and impact, Marion Bennett, told Yahoo Finance that JobSeeker was in desperate need of an increase.
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"The cost of living is biting hard, and for people who are reliant on welfare payments, life is really tough.
"It's really hard to pay rent, plus pay bills, electricity and whatever, to put food on the table, to pay for medical and dental expenses, expenses and everything.
"And we're finding that more and more people are skipping meals so that they can pay the rent."More than 800,000 people are on JobSeeker, the second-biggest number of Centrelink recipients after the Age Pension.
Mission Australia backed the Economic Inclusion Advisory Committee's latest report that said JobSeeker deserved to jump to 90 per cent of the pension.
That would increase the Centrelink payment from $56 per day to $74 per day.
The Australian Council of Social Services believed the daily amount should rise to at least $82.
The Committee's report found JobSeeker payments "continue to fall short of all benchmarks, creating sometimes severe hardship for our neediest citizens".
It found there were benefits to substantially increasing the Centrelink amount including:
Increasing overall well-being in Australia
Lowering spending on government services
Improving recipients' mental health
Allowing recipients to afford medical care and purchase medicines, which could raise their capacity to participate in paid work and community activities
Improve the education of families on JobSeeker
Several Centrelink payments recently went up by a few dollars to keep pace with inflation under twice-yearly indexation.
However, many of the people who are on these financial lifelines said it's nowhere near enough.
Perth resident Damien, who's been on JobSeeker for more than five years, told Yahoo Finance that the "paltry" extra $3.10 per fortnight won't do anything to help him keep up with the cost of living.
"I just scoffed at it. I just feel like not accepting it. It's not going to do us any benefit at all," the 62-year-old said. "$3.10 isn't even a litre of milk. We're supposed to be the lucky country."
Linda, who is on the disability support pension, was equally furious.
"That $3.50 pay rise we have just received from Centrelink is nothing short of a bloody insult," the NSW resident told Yahoo Finance.
Disabled pensioner Trudi, who lives in government housing told Yahoo Finance that every time her Centrelink payments go up, so does her rent.
"We get absolutely nothing, it's bulls**t," she said.
"The government is slapping itself on the back, beating its chest... it's not enough, it will never be enough."
The indexation that hit accounts last week affected JobSeeker, the Age Pension, ABSTUDY, Commonwealth Rent Assistance, Disability Support Pension, and the Carer Payment.Sign in to access your portfolio