From 1 January 2026, more than one million Australians will see their Centrelink social security payments go up thanks to a fresh round of indexation announced today, 5 December 2025, by Social Services Minister Tanya Plibersek. Tanyaplibersek
The changes target students, young people and carers – including those on Youth Allowance, Austudy, ABSTUDY, Youth Disability Support Pension and Carer Allowance – and are now backed by a detailed rate schedule published by the Department of Social Services (DSS). Department of Social Services
More than one million Australians to get a Centrelink cash boost
In a media release issued this morning, Minister Plibersek confirmed that “over one million Australians” on key student and carer payments will receive higher fortnightly Centrelink support from 1 January 2026. Tanyaplibersek
Commercial and multicultural outlets quickly amplified the announcement:
- 9News described the move as a “cash boost for million-plus Aussies in just weeks”, highlighting that Youth Allowance, Austudy, ABSTUDY, Youth Disability Pension and Carer Allowance will all go up. 9News
- Yahoo Finance ran the headline “Centrelink cash boost for 1 million Aussies to hit bank accounts in weeks”, focusing on when the extra money will flow. Yahoo Finance
- Multilingual coverage – including SBS’s Mandarin news flash and Chinese-language reports – has spelled out the same changes for non‑English-speaking communities, underlining that more than a million people will benefit from the 1 January 2026 indexation. SBS Australia
At the heart of all this coverage is a simple message: if you’re a student or carer receiving Centrelink, your payment is set to rise in the new year.
Who will receive higher Centrelink payments from January 2026?
According to the Minister’s announcement and the official DSS rate list, the January 2026 indexation will lift payments for the following groups: Tanyaplibersek
- Youth Allowance – for students, apprentices and some job seekers under 25
- Austudy – for full‑time students and apprentices aged 25 and over
- ABSTUDY – for Aboriginal and Torres Strait Islander students and apprentices
- Youth Disability Support Pension (DSP under 21 with no children)
- Carer Allowance – the fortnightly supplement for people providing daily care
- Related supplements and thresholds, including:
- income free areas and income limits for student payments
- parental income test thresholds for Youth Allowance and ABSTUDY
- care receiver income and asset limits for Carer Payment
- pharmaceutical and disability supplements
Pension-type payments like Age Pension and JobSeeker are not part of this January adjustment. They remain on the usual March and September indexation timetable, a point reiterated in some of today’s Chinese-language coverage. 大紀元 www.epochtimes.com
Key new payment rates: Youth Allowance, Austudy, ABSTUDY and carer support
The DSS “Rates list – 1 January 2026” provides the definitive figures for the new quarter. Department of Social Services Below are some of the most relevant headline changes (all amounts are per fortnight).
Youth Allowance – maximum basic rates
For students and Australian Apprentices on Youth Allowance, the maximum basic rates from 1 January 2026 will be: Department of Social Services
- Single, under 18, living at home:
- New rate: $418.90 (up from $410.30, +$8.60)
- Single, under 18, living away from home:
- New rate: $677.20 (up from $663.30, +$13.90)
- Single, 18 or over, living away from home:
- New rate: $677.20 (up from $663.30, +$13.90)
- Single, 18 or over, living at home:
- New rate: $482.40 (up from $472.50, +$9.90)
- Single, with children:
- New rate: $854.20 (up from $836.60, +$17.60)
- Partnered, no children:
- New rate: $677.20 (up from $663.30, +$13.90)
- Partnered, with children:
- New rate: $733.20 (up from $718.10, +$15.10)
There are also special Youth Allowance rates for long‑term unemployed or migrant English students aged 22 and over who return to full‑time study or training, with the single, away‑from‑home special rate rising to $799.70 per fortnight. Department of Social Services
Austudy – students aged 25+
For Austudy recipients, the new maximum basic rates match many of the Youth Allowance student rates: Department of Social Services
- Single: $677.20 (up $13.90)
- Single, with children: $854.20 (up $17.60)
- Partnered, no children: $677.20 (up $13.90)
- Partnered, with children: $733.20 (up $15.10)
- Special Austudy rate for certain long‑term unemployed or migrant English students:
- Single, no children: $799.70
ABSTUDY – key highlights
ABSTUDY living allowance rates across different age and living arrangements are also increasing, with most moving by between about $8 and $18 per fortnight. A key figure for higher‑degree students is: Department of Social Services
- ABSTUDY – Masters and Doctorate students:
- New rate: $1,316.20 per fortnight (up from $1,285.40, +$30.80)
Income limits that determine when ABSTUDY is reduced or cut out have also been lifted, and the parental income threshold at which ABSTUDY starts to taper has increased to $66,722 per year. Department of Social Services
Youth Disability Support Pension (under 21, no children)
The Disability Support Pension (DSP) for people under 21 without children, including the Youth Disability Supplement, is rising too. According to the DSS rate list: Department of Social Services
- Single, under 18, dependent:
- New max rate: $581.50 per fortnight (up from $569.60, +$11.90)
- Single, under 18, independent:
- New max rate: $839.80 per fortnight (up from $822.60, +$17.20)
- Single, 18–20, dependent:
- New max rate: $645.00 per fortnight (up from $631.80, +$13.20)
- Single, 18–20, independent or partnered:
- New max rate: $839.80 per fortnight
The Youth Disability Supplement itself rises from $159.30 to $162.60 per fortnight.
Carer Allowance and related carer settings
For carers, the standout changes are: Department of Social Services
- Carer Allowance:
- New rate: $162.60 per fortnight (up from $159.30, +$3.30)
- Around 680,000 people receive Carer Allowance, meaning a small but widely‑spread increase.
- Care receiver income and asset limits for Carer Payment have also been raised:
- Income limit for care receivers: $143,752 per year (up from $140,795)
- Lower asset limit: $886,750
- Higher asset limit: $1,317,250
While the Carer Allowance rise is modest in dollar terms (about $86 extra a year), it comes on top of the separate Carer Supplement and any other social security payments the carer receives.
Students can earn a bit more before payments are cut
One of the most practical changes for young people is the higher income free area for student payments.
For Youth Allowance and Austudy students and apprentices, from 1 January 2026: Department of Social Services
- The lower income threshold (income free area) increases from $528 to $539 per fortnight.
- The upper income threshold rises from $633 to $646 per fortnight.
That means students can earn slightly more from part‑time work before their payment starts to reduce and before it cuts out completely. Income cut‑off points – the level at which payment goes to zero – are also rising. For example, a single student living away from home will now generally lose Youth Allowance once their fortnightly income reaches around $1,697, up from about $1,663. Department of Social Services
In short, a little more casual or part‑time income will now be allowed before Youth Allowance or Austudy disappears.
Why are Centrelink payments increasing? The role of indexation
These changes are not a one‑off bonus, but part of the regular indexation of social security payments.
The DSS explains that under the Social Security Act 1991 and the A New Tax System (Family Assistance) Act 1999, payment rates and thresholds are indexed to maintain their value over time as prices rise. Department of Social Services
For the January 2026 quarter, DSS has published an “Indexation Rates January 2026” resource and a detailed rates list covering all the new amounts, confirming that “some government payment rates and limits will rise in January 2026 as a result of indexation.” Department of Social Services
Indexation is meant to:
- keep real purchasing power roughly stable
- automatically adjust payments without people having to re‑apply
- ensure thresholds like income and assets tests move in line with wages or prices, depending on the payment
Today’s announcement emphasises this point, with Minister Plibersek saying that indexation keeps the social security system as a safety net Australians can rely on. Tanyaplibersek
When will the higher Centrelink payments hit bank accounts?
Legally, the new rates take effect from 1 January 2026. Tanyaplibersek
In practical terms:
- Your first regular Centrelink payment after 1 January 2026 will generally be calculated using the new rates.
- Exactly which day the higher amount lands depends on your usual fortnightly cycle (which differs between people and payments).
- Recipients will typically see the updated amount reflected in their online Centrelink account and on their next payment advice.
Finance coverage today – including Yahoo Finance’s piece on a “cash boost” hitting accounts “in weeks” – frames this as money arriving early in the new year, rather than an immediate December windfall. Yahoo Finance
What this means for students, apprentices and young job seekers
For people on Youth Allowance, Austudy and ABSTUDY, the January 2026 indexation does three main things:
- Lifts the base rate
- Most student and apprentice categories gain between about $9 and $18 extra per fortnight. Department of Social Services
- Raises income free areas and income limits
- You can earn a little more from work before your payment is reduced, and full cut‑off points rise slightly.
- Boosts support for higher‑degree students and remote learners
- Masters and PhD students on ABSTUDY see a sizeable increase (around $30.80 extra per fortnight).
- Boarding, distance education and relocation allowances for isolated students also rise in line with the new rate list. Department of Social Services
Together, these shifts are intended to give students and apprentices a small buffer against still‑high living costs while maintaining incentives to take on part‑time work.
What it means for carers and people with disability
For carers and young people with disability, the changes are more about steady, incremental support than large windfalls:
- Carer Allowance rises by $3.30 per fortnight to $162.60. That’s not huge, but it is permanent and indexed. Department of Social Services
- The Youth Disability Support Pension and Youth Disability Supplement both increase, adding between roughly $12 and $17 per fortnight for many under‑21 recipients. Department of Social Services
- Higher income and asset limits for Carer Payment mean some carers and care receivers will stay eligible where they might otherwise have failed the means tests. Department of Social Services
Plibersek’s statement links these changes to a broader cost‑of‑living package – including tax cuts, cheaper medicines and more bulk billing – that the government argues is designed to ensure “no one gets left behind”. Tanyaplibersek
Will Age Pension or JobSeeker change on 1 January 2026?
Short answer: no, not because of this announcement.
Reporting today and official DSS materials show that the January 2026 indexation round is focused on student and carer‑related payments, plus some associated supplements and thresholds. Age Pension, JobSeeker and many other working‑age payments continue to be indexed in March and September, not in January. 大紀元 www.epochtimes.com
If you’re on one of those payments, your next scheduled rise is expected in March 2026, subject to the usual CPI and wage‑linked formulas.
Do you need to do anything to get the higher rate?
For most people, no action is needed:
- Indexation is built into social security law and DSS has already published the new rates. Department of Social Services
- Centrelink systems typically update your rate automatically as the new quarter starts.
However, it’s still a good idea to:
- Check your details in myGov – study load, address, relationship status and income.
- Report your earnings accurately and on time, especially if you’re close to income cut‑off points.
- Keep an eye on letters and online messages from Centrelink outlining your updated payment amount in early January.
For the full official tables, DSS directs people to its social security indexation hub and the “Indexation Rates January 2026” resource, which includes the complete PDF rate list used in this article. Department of Social Services
Key takeaways
- From 1 January 2026, more than one million Australians on Youth Allowance, Austudy, ABSTUDY, Youth Disability Support Pension and Carer Allowance will see their Centrelink payments increase. Tanyaplibersek
- Youth Allowance and Austudy maximum basic rates rise by around $9–$18 per fortnight, with a typical single, away‑from‑home student now eligible for about $677.20 per fortnight. Department of Social Services
- Carer Allowance climbs to $162.60 per fortnight, alongside higher income and asset limits for Carer Payment. Department of Social Services
- Income thresholds move up so students and apprentices can earn slightly more before their payment is reduced or cut off. Department of Social Services
- The changes are part of routine indexation, not a one‑off bonus, and they’re designed to keep social security payments roughly in line with the cost of living. Department of Social Services
If you receive one of the affected payments, the bottom line is simple: your first Centrelink payment after 1 January 2026 should be higher – automatically.
