About five million Australians will receive an increase to their social security payments when indexation takes effect on 20 March.

Minister for Social Services, Amanda Rishworth, said recipients of the Age Pension, Disability Support Pension, and Carer Payment will receive an extra $19.60 a fortnight for singles and $29.40 a fortnight for couples combined.

Including Pension Supplement and Energy Supplement, the maximum rate of pension will be $1,116.30 a fortnight for singles, and $1,682.80 a fortnight for couples.

Ms Rishworth said Commonwealth Rent Assistance (CRA), JobSeeker, Parenting Payment Single and ABSTUDY will also all be indexed.

National Seniors Australia has welcomed the increases but continues to call for changes to the CRA. (See below.)  

The Minister said the Federal Government is determined to assist with cost-of-living pressures and help Australians when they need it most.

“Our number one priority is addressing inflation and cost-of-living pressures. These challenges highlight the importance of regular indexation to ensure that payment recipients have more money in their pockets for everyday expenses,” she said.  

“Pension recipients are some of the most vulnerable members of our communities, many having worked all their lives contributing to our society or caring for a loved one."

Indexation on 20 March will see the single, without child rate of JobSeeker payment and ABSTUDY (aged 22 and over) increase by $13.50 per fortnight, bringing the total fortnightly payment to $771.50, including Energy Supplement.

The complete list of payments increasing on 20 March 2024, including income and asset limits, can be found on the Department of Social Services website.

While National Seniors Australia welcomes the rise in payments due to indexation, we note that pensioners who rent are falling behind.

More than 325,000 Australians aged 65 and older rent their homes, two-thirds of whom rely on the private market. This figure is growing.

We are calling for Commonwealth Rent Assistance (CRA), which is currently linked to overall CPI, be tied specifically to the rental component of CPI.

According to Australian Bureau of Statistics (ABS) figures, inflation was steady at 3.4% in the year to January 2024, while rents were up 7.4%.

NSA's policy on CRA highlights the importance of housing security for wellbeing in later life. However, an increasing number of older people cannot afford to own a home and are stuck struggling to maintain housing in an increasingly unaffordable rental market.

That is why we are calling for a further increase in the maximum CRA payment and changes to indexation to ensure payment increases match market realities.

Ultimately, CRA rates should reflect rental market prices in different locations.