The changes will affect people on the Jobseeker Payment who will have their payments increased by $15.30 a fortnight to $786.80 for singles, and $28 to $1440.40 for couples.
Jobseeker recipients who only have an assessed partial capacity to work up to 14 hours will also move onto the higher rate, which will increase their payments by $71.20 a fortnight.
The parenting payment will be boosted by $19.80 a fortnight to $1026.30 for singles, and $28 to $1447.20 a fortnight for partnered households.
The biggest increases will affect the disability support pension, age pension and carer payment, which will increase by $28.10 for single recipients and $42.40 for couples to $1144.40 and $1725.20 a fortnight.
People on the maximum rate of the rental assistance packages will also get a $23 uplift to $211.20 for singles, and $43.60 to $398 for couples, with the changes including quarterly indexation rates and a 10 per cent boost.
Recipients of the Jobseeker, disability, rent assistance and aged care pension payments will get a boost from Friday. Picture: NewsWire / Nicholas Eagar
Treasurer Jim Chalmers and Social Services Minister Amanda Rishworth acknowledged rents were “still too high” but hoped Labor’s 15 per cent increase to rent assistance payments were “taking some of the edge off”.
They also criticised the Coalition and the Greens rejecting Labor’s shared-equity Help to Buy scheme, which not be voted on in the Senate for another two months.
While Labor says it will help up to 40,000 people access the housing market, the Greens have argued it will increase house prices, and put further pressure on renters.
In increase to social security payments comes ahead of the Reserve Bank’s (RBA) interest rate decision on Tuesday, where it will announce whether it is hiking, cutting or holding the current cash rate of 4.35 per cent.
RBA governor Michele Bullock has consistently warned its too premature for the board to consider a “near-term” cut, with inflation still sitting stubbornly over the bank’s target range of 2 to 3 per cent.
August’s Labour Force data also revealed Australia’ unemployment rate remained unchanged at 4.2 per cent, dashing hopes of a rate cut.
Despite this, pressure will be on Ms Bullock to consider a hike, following the US Federal Reserve Bank’s decision to lower rates by 50 basis points on Thursday.
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