Federal Government Boosts Welfare Payments: Who Will It Help?

The federal government is set to increase the welfare payments for over 1 million Australians from Jan. 1 to help the population cope with the rising cost of living and ensure those relying on social security payments can keep pace with inflation.

Payments will increase by 3.8%, which means a major upgrade for specific groups. For example, the youth population will enjoy a rise from between AU$17.30 and AU$24.30 per fortnight, while single students will see a rise from AU$24.30 to AU$30.60, the Ministers for the Department of Social Services said in a statement.

Caregivers' fortnightly welfare stipend will rise to AU$159.30 with the addition of AU$5.80 each fortnight, Nine News reported.

Other Centrelink payments, such as Double Orphan Pension, Mobility Allowance, Youth Disability Support Pension, etc., will also see a rise.

In the statement, the minister for Social Services, Amanda Rishworth, said, "We want to reduce disadvantage and maintain Australia's strong and sustainable social safety net by providing relief to those most in need. Through indexation, payments are adjusted in line with cost of living changes to ensure people have more money in their pockets."

Even as the increase is a welcome change, experts argue that it might still fall short of covering escalating costs of living.

Cassandra Goldie, the chief executive of the Australian Council of Social Service, pointed out that some Australians will still live below the poverty line despite this change.

"Every dollar helps when you're living in poverty - but we've now got students all over the country who routinely can not feed themselves," she said.