Welfare Payments: The Australian government has taken a very important and relief decision in the budget of May 2025. This decision will benefit millions of people in the country who are already struggling financially. The government has made a big increase in welfare schemes under its $14.6 billion budget package so that people can get relief from the rising cost of living.
What is the objective of the government?
Inflation has broken the back of millions of families living in Australia. The prices of everything from food items to rent, electricity and medicines are constantly rising. Keeping this in mind, the government has decided to increase the financial help of those who are already dependent on welfare payments, such as JobSeeker, Youth Allowance, Austudy, ABstudy, Disability Pension and Old Age Pension recipients.
Australia’s Social Services Minister Amanda Rishworth said, “We know that many people are facing difficulties today and they want the government to help them. Our decision is a strong step towards providing relief to those people.”
Who will get how much benefit?
Under the government’s new scheme, beneficiaries falling in different categories will get different amounts of increase in welfare payments. Let’s understand this in detail:
1. Relief to JobSeeker recipients
Those who are currently receiving JobSeeker Payment will now get an additional $56.10 every fortnight. After this, their total fortnightly income will be $749.20.
Example: If a person was earlier getting $693.10 per two weeks, now he will get about $56 more, which will give him some relief. Although the opposition says that it is still below the poverty line, the government considers it “practical assistance”.
2. Relief to renters
If you are on income support and also pay rent, then now you will get an additional $27.60 every two weeks. The government has increased the Commonwealth Rent Assistance by 15 percent, which is considered to be the biggest increase in the last 30 years.
Its direct impact:
- Around 11 lakh households will benefit from this scheme.
- Many students, single mothers and disabled people will get help in reducing the burden of rent.
3. Youth will also benefit: Youth Allowance, Austudy, ABSTUDY
The government has not disappointed students and youth either. People receiving money under schemes like Youth Allowance, Austudy, and ABSTUDY will now get an additional $40 every two weeks, which is in addition to the $16 indexation increase already received.
Why was this change necessary?
In today’s time, students are under pressure for both studies and rent. Many students are on the verge of dropping out because they are unable to meet their expenses. The government wants that education should not be left in the middle and the youth should become self-reliant.
4. What are the changes for Veterans and pensioners?
Veterans who have worked in government service will now get an additional $32.70 in service pension. At the same time, those receiving Disability Compensation will get an additional $53 every fortnight.
At the same time, other beneficiaries like Age Pension, Disability Support Pension and Carer Payment have also been given an increase:
- Single people get an increase of $32.70
- Couples get a total increase of $49.40
What is the reason for this?
The indexation rate has increased by 2.2 percent, that is, these pensions have also been increased along with inflation so that the elderly and caregivers can get a little more support.
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5. Limit increased for Commonwealth Seniors Health Card
If you want to apply for Commonwealth Seniors Health Card, then now you will get some relief. Now the income limit for this card has been increased:
- For singles: Now the income can be up to $95,400 per year
- For couples: Now the income can be up to $152,640 per year
Why was this change necessary?
This card gives a lot of relief to the elderly due to rising inflation and health expenses. With the increase in this limit, more people will now be able to become eligible for it and take advantage of government subsidized medicines and services.
What does the opposition say?
Although the government has described this decision as a historic relief, the opposition party Greens is not completely satisfied with it.
Greens MP Janet Rice said, “This increase is very modest and not enough for people living below the poverty line. JobSeeker and student allowances are still not enough to afford both food and medicines.”
Her party colleague Larissa Waters also raised an important issue. She said that single parenting payment stops when the child turns 14 years old, while parents have to bear the same expenses to raise children of 15-16 years.
Conclusion: Is this change enough?
This move of the government is definitely a relief. This will help millions of people to deal with the cost of living to some extent. Especially those who were already struggling with unemployment, education, rent or health problems – they will get some financial strength.
But the question also arises whether this relief is enough? Will this end the problems of people living below the poverty line?
