As Australia continues to grapple with rising living costs, the government is making significant updates to Centrelink payments and support schemes. June 2025 marks a pivotal point for millions of Australians who rely on these payments for their daily needs. This article provides a comprehensive overview of the official changes, eligibility criteria, and practical advice for recipients.
Key Changes to Centrelink Payments
Annual Indexation and Payment Boosts
From July 1, 2025, approximately 2.4 million Australians receiving Centrelink and Services Australia support will see their payments increase by 2.4% as part of the routine indexation process. This adjustment is designed to help keep payments in line with inflation and the rising cost of living.
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Family Tax Benefit (FTB): Maximum fortnightly payments for FTB Part A will rise to $227.36 (up $5.32). For children aged 13 and over, the rate increases to $295.82 per fortnight (up $7). FTB Part B will see the maximum rate increase to $193.34 per fortnight (up $4.48), and for children over 5, the rate will be $134.96.
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Age Pension, Disability Support Pension, and Carer Payment: These payments will also see a 2.4% increase, as will the relevant income and asset thresholds.
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Youth Allowance and Student Payments: These were already indexed in January 2025 and will not be increased again in this round.
Who Is Eligible for the July Payment Increase?
Automatic Updates for Most Recipients
Eligible recipients do not need to take any action to receive the increased payments. The boost will be applied automatically from July 1, provided that your myGov–Centrelink account details are up to date. This includes ensuring your bank details and personal information are current.
Exclusions and Special Cases
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Youth and Student Payments: These groups will not receive another increase in July, as their payments were adjusted earlier in the year.
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JobSeeker and Similar Payments: These payments are indexed in March and September, so they are not included in the July increase.
Compliance and Payment Suspensions
Why Are Some Payments Being Halted?
Centrelink has implemented stricter compliance checks and revalidation processes. From June 1, 2025, payments are being paused for recipients who have failed to meet reporting obligations, missed eligibility reviews, or have not updated their personal details.
Common Reasons for Payment Suspension
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Incomplete income reporting
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Unmet mutual obligation requirements (especially for JobSeeker)
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Overseas travel exceeding allowed duration without notification
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Expired identification documents
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Change in household income or partner status
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Missed participation interviews or review appointments
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Residency or citizenship status changes
Who Is Most Affected?
Suspensions are not applied universally but target specific groups failing to meet reporting or eligibility conditions:
| Benefit Category | Reason for Payment Halt | Targeted Group |
|---|---|---|
| JobSeeker Payment | Missed job search activities | Unemployed recipients |
| Youth Allowance | Not enrolled full-time | Tertiary students aged 16–24 |
| Austudy | Enrolment verification missing | Adult learners and students |
| Parenting Payment | Income reassessment overdue | Single and partnered parents |
| Family Tax Benefit | Failure to lodge tax returns | Low-income families |
| Disability Support Pension | Pending medical reviews | People with disability |
| Age Pension | Unreported overseas stay or asset updates | Senior citizens |
| Carer Payment | No current proof of care responsibilities | Full-time carers |
What Should You Do If Your Payment Has Been Stopped?
If you receive a notification or find that your Centrelink payment has stopped, take the following steps:
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Log into your myGov account and check for alerts or letters.
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Update your personal details (address, relationship status, income).
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Submit any missing documentation (medical or student proof).
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Call Centrelink directly or visit a local Services Australia service center.
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Request a review or appeal if you believe the stoppage is in error.
Regional Impact
Certain regions have seen a higher volume of suspended benefits due to data-matching and regional compliance drives. If you live in these areas, double-check your Centrelink details:
| Region | State/Territory | Most Affected Benefit | Common Issue |
|---|---|---|---|
| Western Sydney | New South Wales | JobSeeker & Youth Allowance | Job activity compliance |
| Logan & Ipswich | Queensland | Parenting & Family Benefits | Income review delays |
| Northern Adelaide Suburbs | South Australia | Austudy & JobSeeker | Study verification gaps |
| Greater Dandenong | Victoria | DSP & Carer Payment | Medical evidence expiry |
| Launceston | Tasmania | Age Pension | Overseas trip declarations |
| Palmerston & Darwin | Northern Territory | Youth Allowance | Course discontinuation alerts |
| Perth South-East | Western Australia | JobSeeker | Missed appointment follow-ups |
Below is a summary of key Centrelink payment rates and changes for June–July 2025:
| Payment Type | Max Fortnightly Rate (July 1, 2025) | Increase from Previous | Notes/Details |
|---|---|---|---|
| FTB Part A (Under 13) | $227.36 | +$5.32 | For children under 13 |
| FTB Part A (13+) | $295.82 | +$7 | For children aged 13 and over |
| FTB Part B (Under 5) | $193.34 | +$4.48 | For youngest child under 5 |
| FTB Part B (5+) | $134.96 | — | For children 5 and over |
| Age Pension (Single) | $1149.10 | — | Includes supplements |
| Age Pension (Couple) | $1732.20 | — | Includes supplements |
How to Stay Updated and Avoid Disruptions
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Regularly check your myGov–Centrelink account for updates and notifications.
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Update your personal and banking details as soon as any changes occur.
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Respond promptly to any requests for information or documentation from Centrelink.
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Be aware of upcoming payment dates and indexation cycles to anticipate changes in your payments.
Government Perspective and Future Outlook
Social Services Minister Tanya Plibersek has emphasized that these indexation adjustments are crucial for helping Australians cope with the cost of living. “Payments like the Family Tax Benefit help cover the costs of raising children for many Australian families, and indexation is a crucial way to help families when cost of living rises,” she said.
The government remains committed to supporting low- and middle-income families, pensioners, carers, and new parents through these regular payment adjustments.
FAQs
Q: Do I need to apply for the July 1 payment increase?
A: No, the increase will be applied automatically if you are eligible and your details are up to date.
Q: Why was my Centrelink payment stopped in June 2025?
A: Payments may be paused if you have not met reporting requirements, missed eligibility reviews, or failed to update your personal details.
Q: When will JobSeeker payments be increased?
A: JobSeeker payments are indexed in March and September, not in July.