December 8th 2024.
Starting in the new year, over one million Australians will see an increase in their welfare payments to account for the rising cost of living. This annual indexation is designed to assist those who rely on social security to keep up with inflation. However, many experts argue that the increase is still not enough to truly alleviate financial strain.
In 2025, welfare payments will see a 3.8% boost, resulting in a jump for youth allowance recipients from $17.30 to $24.30 per fortnight, and for single students from $24.30 to $30.60. Carers will also see an increase of $5.80 per fortnight, bringing their total welfare allowance to $159.30.
Cassandra Goldie, chief executive of the Australian Council of Social Service, expressed her concerns that even with the indexation, many Australians will still be living below the poverty line. She emphasized the importance of every dollar for those struggling to make ends meet, citing the fact that there are students across the country who are unable to feed themselves.
Critics of the welfare system have also pointed out that the indexation only occurs once a year, leaving recipients playing catch-up as the cost of necessities continues to rise throughout the year. Goldie explained that by the time the increase is received at the end of the year, recipients have already had to spend their limited funds on essential items.
These concerns highlight the ongoing struggles faced by those on welfare and the need for more frequent and substantial increases to truly make a difference. The indexation is currently set to take effect on January 1, 2025.
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