A single adult receiving Youth Allowance with no dependents, who lives away from home, will see their maximum fortnightly payment increase to $684.20, making their annual payment now more than $3,800 more since Labor came to government.
Income thresholds for student payments will also increase, as well as the parental income test threshold for Youth Allowance and ABSTUDY.
People receiving the Carer Allowance will see their payments increase to $162.60 per fortnight, making their annual payment almost $700 more since Labor came to government.
This is in addition to Carer Supplement and other social security payments that carers may also be receiving.
Indexation ensures the social security system remains a safety net that Australians can rely on by adjusting payments in line with inflation.
The complete list of payment rates being indexed on 1 January 2026 can found on the Department of Social Services website at https://www.dss.gov.au/income-support-payments/social-security-indexation
Federal Member for Blair Shayne Neumann said the Albanese Labor Government was committed to easing cost-of-living pressures for all Australians, through measures like increased rent assistance, cuts to student debt, free TAFE, cheaper child care, cheaper medicines and more bulk billing.
“Thanks to indexation, people balancing study or caring responsibilities will receive a boost to their payments,” Mr Neumann said.
“We’ll continue to make sure our social security system is there to support those who need it most, ensuring that everyone can make ends meet and no one gets left behind.”
Mr Neumann said these changes to social security payment rates came on top of a range of measures announced in last week’s Mid-Year Economic and Fiscal Outlook to support local families, workers and young people.
These initiatives include:
• $10 billion to deliver up to 100,000 homes for sale only to first home buyers.
• $1.1 billion for more free mental health services and additional training places.
• $435 million to help low-income workers through a boost to the Low Income Superannuation Tax Offset.
• $98 million to fast-track the qualification of 6,000 tradies and establish a new National Training Centre in New Energy Skills.
“We are also delivering two more rounds of tax cuts for all 80,000 taxpayers in Blair next year and the year after, supporting more bulk billing since 1 November, cutting student debt by 20 per cent for 23,000 people in Blair, and making medicines even cheaper from 1 January next year,” Mr Neumann said.
