A number of changes to social security payment rates will commence from 1 January 2026, with over one million Australians receiving Youth Allowance, Austudy, ABSTUDY, Youth Disability Support Pension and Carer Allowance set to see more money in their bank account each fortnight.
A single adult receiving Youth Allowance with no dependents, who lives away from home, will see their maximum fortnightly payment increase to $684.20, making their annual payment now more than $3,800 more since Labor came to government.
Income thresholds for student payments will also increase, as well as the parental income test threshold for Youth Allowance and ABSTUDY.
Around 680,000 people receiving the Carer Allowance will see their payments increase to $162.60 per fortnight, making their annual payment almost $700 more since Labor came to government. This is in addition to Carer Supplement and other social security payments that carers may also be receiving.
Indexation ensures our social security system remains a safety net that Australians can rely on by adjusting payments in line with inflation.
The Albanese Labor Government is committed to easing cost-of-living pressures for all Australians, which is why we're delivering tax cuts for every taxpayer, cuts to student debt, free TAFE, cheaper medicines, and more bulk billing.
The complete list of payment rates being indexed on 1 January 2026 can found on the Department of Social Services website.
Quotes attributable to the Minister for Social Services, Tanya Plibersek:
"Thanks to indexation, more than one million Aussies balancing study or caring responsibilities will receive a boost to their payments.
"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.
"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."
