Indexation of payment rates and thresholds 108-25043030

Services Australia payment rates and thresholds are periodically adjusted in line with living cost increases to maintain their value over time. This process is known as indexation and is outlined in the Social Security Act 1991. Services Australia are responsible for delivering indexation changes on behalf of the Department of Social Services (DSS).

Different payment rates and thresholds are indexed on different dates throughout the year, see Resources for more information.

Rates are circulated amongst relevant business teams in the agency in preparation for indexation cycles, however the public release of these rates is restricted until such time that either:

• the minister announces the new rates
• the new rates are published on the Department of Social Services (DSS) website

A link to the Department of Social Services (DSS) website is included on the Resources page.

If customers contact prior to the rates being released, advise them that they won’t need to do anything and that they will receive their updated payment rate following the relevant indexation date if an increase is applied.

Once new rates have taken effect, the figures are updated in the Rates and Thresholds index within Operational Blueprint. The previous figures are also recorded for comparison.

When the rate of an income support payment is indexed or the income/asset free areas are increased, this increases the amount a person (and their partner if applicable) can be impacted by the income and assets test before they reach the cut-off point.

Paid Parental Leave (PPL) rates are not indexed to the Consumer Price Index (CPI) . The rates are set by the Fair Work Australia Minimum Wage Panel. The increase is generally published each year in the beginning of the month of June.