An estimated 1.4 million families are set to benefit from the increase to the Family Tax Benefit.

Part A of the tax benefit will increase by up to $204.40 per year for families with a child under 13 years of age, and $255.50 per year for those with a child 13 years and older.

Similarly, Part B will increase by up to $164.25 per year for families who have a youngest child under five and $116.80 per year for those whose youngest child is aged five to 18.

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Federal Labor Member for Bendigo Lisa Chesters said it would have a significant impact on families in the region.

"In the Bendigo electorate, there's more than 17,000 families on either Family Tax Benefit Part A or B," Chesters said.

"The cost of living is skyrocketing and locals are feeling the pinch. This boost will help many families across the region.

"But what we acknowledge as an incoming Labor government is that it's not enough and there's more work to do."

The amount of income or assets an age pension, disability support pension or carer payment recipient can have before their payment is affected will also increase.

"Social security and family payments have a built-in safeguard where they are automatically indexed at regular intervals to help them maintain purchasing power," Ms Chesters said.

The Bendigo MP has been outspoken about "raising the rate" of welfare payments during her time in opposition.

Before the election, Ms Chesters publicly challenged the then opposition leader Anthony Albanese's decision to backflip on a promise to review the national JobSeeker rate.

Now, as Labor prepares for the new Parliament to sit in July, Ms Chesters has mellowed her sentiment on the JobSeeker rate.

"What I said before the election was that rates like youth allowance and job seeker rates are too low to live on, they're too low to pay for the cost of the basics," she said.

"So all of those payments, I feel we need to look at ask 'are they achieving what they were designed to do?'

"(They're designed) to support people in a safety net.

"There's a lot of policy work we need to do in this space, and, and I'm really keen to get back to Canberra to talk to our new Minister about how a Labor government can ensure that we have a strong safety net for all Australians who need it."

More details on the new payment rates and thresholds are available on the Department of Social Services website.

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