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Indexation of payment rates and thresholds 108-25043030

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Indexation cycles

Table 1

Item

Description

1

1 January

The following payment rates and thresholds are indexed on 1 January each year.

  • Youth Allowance
  • Austudy
  • ABSTUDY Living Allowance (under 22) and ABSTUDY supplementary assistance
  • Disability Support Pension (youth rates)
  • Youth Disability Supplement
  • Assistance for Isolated Children
  • Carer Allowance
  • Double Orphan Pension
  • Pharmaceutical Allowance
  • Mobility Allowance
  • Equity or Merit Based Scholarships exempt income threshold

2

20 March

The following payment rates and thresholds are indexed on 20 March each year.

  • Age Pension
  • Disability Support Pension (adult rates)
  • Carer Payment
  • JobSeeker Payment
  • Parenting Payment
  • Farm Household Allowance
  • ABSTUDY Living Allowance (22 or over)
  • Rent Assistance
  • Pension Supplement
  • Utilities Allowance
  • Low Income Health Care Card (LIC) income limits

3

1 July

The following payment rates and thresholds are indexed on 1 July each year.

  • Family Tax Benefit (and related supplements)
  • Child Care Subsidy
  • Essential Medical Equipment Payment
  • Pension income and asset thresholds
  • Allowance asset value limits
  • Parenting Payment (Single) income threshold
  • Paid Parental Leave income limit
  • Deeming thresholds
  • Special Disability Trust concessional asset threshold
  • Special Disability Trust discretionary spending limit

4

20 September

The following payment rates and thresholds are indexed on 20 September each year.

  • Age Pension
  • Disability Support Pension (adult rates)
  • Carer Payment
  • JobSeeker Payment
  • Parenting Payment
  • Farm Household Allowance
  • ABSTUDY Living Allowance (22 or over)
  • Rent Assistance
  • Pension Supplement
  • Telephone Allowance
  • Utilities Allowance
  • Commonwealth Seniors Health Card income limits
  • Low Income Health Care Card (LIC) income limits

Rate calculation example

Table 2

Item

Description

1

Calculating rate of payment where entitlement period includes indexation changes

Where indexation changes have taken effect part way through an entitlement period for an income support payment, part of the entitlement period will be paid at the old rate and part will be paid at the new rate.

This leads to an ‘in-between’ payment and the next payment the customer receives will then be a full payment made at the new rate.

Example:

  • CJ is single and receives Age Pension at the current maximum fortnightly rate of $1,144.40
  • CJ’s upcoming entitlement period is 13 March to 26 March
  • On 20 March, indexation changes take effect and the new Age Pension rate of $1,149 per fortnight applies
  • For the first seven days of the entitlement period, the old rate is payable and for the remaining seven days, the new rate is payable
  • Pension payments are calculated on a daily basis using an annual rate
  • For the first seven days, the rate is calculated as follows:
    • $29,754.40 (old annual rate) divided by 364 (to achieve a daily rate) multiplied by 7 = $572.20
  • For the remaining seven days, the rate is calculated as follows:
    • $29,874 (new annual rate) divided by 364 (to achieve a daily rate) multiplied by 7 = $574.50
  • This means the total rate of CJ’s Age Pension for the entitlement period 13 March to 26 March is $1,146.70
  • CJ’s next Age Pension payment will be paid at the full new rate of $1,149 per fortnight

  • Note: The rates used in this example are at a point in time and will not always be reflective of the current rates

External websites

Social security indexation | Department of Social Services

Intranet

Indexation