Millions of Australians are set to benefit from debt waiver updates and payment boosts that take effect from today.
The small debt waiver has now increased for the first time in over 30 years, marking an important step towards ensuring our system remains fair for recipients and taxpayers alike.
With the waiver now set to $250, around 1.2 million debts will now be waived or no longer raised in 2025-26. This means that around half of the backlog of potential debts will be wiped today.
The cost of recouping these minor debts was often higher than the value of the debt itself, rendering the previous process outdated and an inefficient use of taxpayers' money.
The small debt waiver will also now be indexed each year from 1 July 2026 to changes in the Consumer Price Index, helping to maintain its value over time.
More than 5 million social security recipients will also benefit from indexation today as a range of payments and allowances have increased.
People receiving the Age Pension, Disability Support Pension, Carer Payment, Parenting Payment and JobSeeker Payment can expect to see a boost to their fortnightly payment on their next pay day.
Nearly one million renters will also benefit from increases to Commonwealth Rent Assistance, with maximum rates now over 50% higher since we came to Government.
The complete list of payment rates being indexed on 20 March, including income and asset limits, can be found on the Department of Social Services website.
Quotes attributable to the Minister for Social Services, Tanya Plibersek:
"The social security system supports millions of Australians. Whether it's aged pensioners or young children, we want every Australian to get the help they need when they can't work or need a bit of support to make ends meet.
"The system also needs to be good value for taxpayers too.
"Our landmark social security debt reforms do just that.
"The changes taking effect today will make sure Services Australia is not wasting taxpayer dollars on small scale debt recovery, while also protecting recipients from experiencing unnecessary stress over minor, accidental debts.
"Combined with real increases to payment rates, our Income Apportionment Resolution Scheme, and new protections for victims of financial abuse, the Government is ensuring the social security system is there to support those who need it most."
