About 4.7million Australians to receive a massive boost to their pension and allowance payments

Over 4.7 million Australians will soon receive a boost to their pension and allowance payments. From March 20, single and disability pension recipients and carers will get an additional $37.50, raising the fortnightly payment to $1,064.

Couples will receive an extra $56.40, bringing the fortnightly payment to $1,604. JobSeeker and ABSTUDY payments will increase by $24.70, and Parenting Payments will rise by $33.90 for single parents, raising the fortnight payment to $967.90.

Additionally, Commonwealth Rent Assistance will increase by $5.60 for singles, $6.58 for recipients with two children, and $7.42 for families with three or more children.

These increases are part of the twice-yearly indexation aimed at keeping pensions and allowance payments aligned with inflation. The rise in pensions has outpaced the increase in wages, with a 4% rise in September 2021 and a 3.7% boost this month.

In contrast, Australian wages last year rose by 3.3%, the fastest pace in a decade, but was still below the inflation rate of 7.8% – the worst since 1990.

Minister for Social Services Amanda Rishworth said the increase would go a long way to help recipients, as indexation is a pillar of the country’s social security system, and they want more money in the pockets of everyday Australians so they can better afford essentials.

This increase in payments comes as mortgage holders brace for more pain with the Reserve Bank of Australia likely to deliver its 10th interest rate hike, which could take the cash rate from 3.35% to 3.6%.

Mortgage holders have experienced nine consecutive rate hikes, leading to an annual repayment that is usually $12,000 higher than it was in May 2022.