Latest News: Centrelink Payment Increases in Australia (2026)

At the start of 2026, the Australian Government confirmed increases to several Centrelink payments, as part of the regular indexation process designed to help recipients cope with rising living costs.
These changes affect over one million Australians and are applied automatically, meaning no new application is required.

When Do the Increases Start?

The payment increases took effect from 1 January 2026. Eligible recipients will see the updated amounts reflected in their regular fortnightly payments.

Who Is Getting an Increase?

The increases apply to several key Centrelink payments, including:

Youth Allowance

• The maximum rate for people living away from home has increased to around $684 per fortnight.
• Rates vary depending on age, living situation, and independence status.

Austudy and ABSTUDY

• Payment rates for students and apprentices have increased.
• Income thresholds have also been adjusted, allowing some people to earn more before their payments are reduced.

Carer Allowance

• The Carer Allowance has increased to approximately $162.60 per fortnight.
• Around 680,000 carers across Australia are expected to benefit.

Youth Disability Support Payments

• Young people receiving disability-related payments have also received indexed increases, depending on their circumstances.
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• Why Are Centrelink Payments Increasing?
• These increases are part of indexation, a process that adjusts social security payments in line with inflation and the cost of living.
• Indexation is applied automatically to ensure payments maintain their real value as prices for essentials such as food, rent, and energy rise.

What Does This Mean for You?

✔️ Slightly higher payments deposited directly into your bank account

✔️ No need to apply or contact Centrelink

✔️ Adjusted income limits may help some people stay eligible

However, many welfare advocates argue that while the increases are welcome, they do not fully keep up with the real cost of living, especially for rent and utilities.

Official Information

For the most accurate and up-to-date details, recipients are encouraged to check the official government website or their Centrelink online account.