More than one million Australians will receive higher social security payments from January 1, 2026, as part of the federal government’s latest indexation round, Social Services Minister Tanya Plibersek has confirmed.
The increases will apply to a wide range of student and carer payments, including Youth Allowance, Austudy, ABSTUDY, the youth disability pension, and the carer allowance. According to the minister, the updated rates reflect the government’s commitment to easing financial pressures for young people and carers facing rising living costs.
Under the new indexed rates, a single adult living away from home with no dependents who receives Youth Allowance will see their maximum fortnightly payment rise to $684.20. Income thresholds for student payments will also increase, allowing recipients to earn more before their benefits are reduced. In addition, the parental income test threshold for Youth Allowance and ABSTUDY will rise, potentially extending eligibility to more families.
Approximately 680,000 carers will also benefit, with the carer allowance increasing to $162.60 per fortnight, on top of other existing supports such as the annual carer supplement.
The government also confirmed it will introduce legislation aimed at protecting the continued use of cash across Australia, responding to growing public concerns about declining access to cash-based services.
Minister Plibersek described the changes as a meaningful step forward for Australians who are studying, training, or caring for loved ones:
“Thanks to indexation, more than one million Aussies balancing study or caring responsibilities will receive a boost to their payments,” she said.
The full list of updated payment rates will be available on the Department of Social Services website.
