More than one million Australians relying on key social security payments are set for a welcome financial boost at the start of 2026. The federal government has confirmed a new round of indexation will increase fortnightly Centrelink payments for students, carers, and young people.
Payment Increases and New Thresholds
Minister for Social Services Tanya Plibersek announced the changes on Friday, with the new rates taking effect from 1 January 2026. The indexation will apply to Youth Allowance, Austudy, ABSTUDY, the Youth Disability Support Pension, and the Carer Allowance.
A single adult living away from home and receiving Youth Allowance with no dependents will see their maximum fortnightly payment rise by $20.90 to $684.20. This increase is designed to help students and young people keep up with the cost of living.
In a significant move for families, income thresholds for student payments will also increase. The parental income test threshold for Youth Allowance and ABSTUDY will be lifted, meaning more families could become eligible for support or receive higher payments.
Support for Australia's Carers
Approximately 680,000 people who receive the Carer Allowance will benefit from a $3.30 fortnightly increase, bringing the payment to $162.60. It's important to note that this payment is separate from the Carer Supplement and any other social security payments a carer might receive.
"Thanks to indexation, more than one million Aussies balancing study or caring responsibilities will receive a boost to their payments," Minister Plibersek said.
Part of a Broader Cost-of-Living Strategy
The Minister framed the payment increases as one part of the government's wider approach to easing financial pressure. She highlighted that social security recipients may also benefit from other measures.
"Social security recipients may also benefit from Labor’s tax cuts, increased rent assistance, cuts to student debt, free TAFE, cheaper medicines, more bulk billing and a whole range of other cost-of-living measures we’ve delivered since coming into government," Plibersek stated.
She reaffirmed the government's commitment to the social safety net, saying, "We’ll continue to make sure our social security system is there to support those who need it most, ensuring that everyone can make ends meet and no one gets left behind."
The complete list of all updated payment rates that will be indexed on 1 January 2026 is available for the public to view on the official Department of Social Services website.
