New year to bring some relief with more cash for Bendigo welfare recipients

Indexation will bring a six per cent boost in payments for welfare recipients receiving youth, student or carer support from January 1, 2024.

Government payments are adjusted in line with changes in the cost-of-living to retain their purchasing power through regular indexation.

Federal Member for Bendigo Lisa Chesters said indexation increases build on a $40 a fortnight increase to youth and student payment rates that came into effect in September.

"Australia's social security system is a safety net that is continually strengthened and improved to support all vulnerable Australians," she said.

"The indexation increase is putting more money into the hip pockets of central Victorians who rely on the social security system for support, and that's a good thing."

Previously, Greens senator Janet Rice said September's $40 increases merely tinkered around the edges of a broken social safety net.

"People on Jobseeker will still struggle to afford food as well as their medicine; more and more students will abandon their studies because they can't afford to study and pay the rent," she said.

As the new indexation takes affect from January 1, job seekers and students will see their Youth Allowance payments increase between $22.40 and $45.60 a fortnight, while those receiving Austudy will get an increase of between $36.20 and $45.60 a fortnight.

Recipients of Disability Support Pension aged under 21 years will receive payment increases of $31.10 to $44.90 a fortnight, and more than 600,000 carers will receive additional financial support as Carer Allowance will increase to $153.50 a fortnight.

The complete list of payments to increase as of January 1 2024, as well as their new rates and thresholds, can be found on the Department of Social Services website.