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ABC News
ABC News
National
the Specialist Reporting Team's Evan Young and social affairs correspondent Norman Hermant

From JobSeeker to rent assistance and the single parenting payment: The budget's Centrelink changes explained

A number of Centrelink payments, including JobSeeker, are set for a modest increase. (ABC News: Billy Cooper)

As the cost of living continues to spiral, many Australians relying on unemployment payments are struggling in poverty.

The government has been under increasing pressure to raise the rate of Centrelink payments such as JobSeeker, and this year's federal budget has done just that.

From September, millions of Australians will see an increase in their payments — but there are concerns about how far those increases will actually go.

"We understand that there will be people who are saying [what we've done] is not enough. There will be some who will be saying it is too much," Treasurer Jim Chalmers told the ABC on Tuesday night.

"We think we've struck the right balance between what we can afford and taking into consideration the economic pressures in the economy."

There's a fair bit that's changing, so read on for more information and to find out what the response has been.

JobSeeker is going up for everyone

The biggest takeaway from the budget in terms of social security is that the rate of JobSeeker is increasing for all recipients by $40 a fortnight, or $2.86 per day, in September.

It'll take the base amount for a single person under 55 with no children from $49.51 to $52.37 per day

That's still well below the Henderson poverty line — one of the most commonly-used measurements of disadvantage — which suggests income below $87.32 per day places a person in poverty.

The higher rate for older Australians, which previously applied to recipients over 60 who had received JobSeeker for nine months or longer, will now also apply for recipients over 55. 

That means their payment will increase from $53.02 a day to $56.09 a day.

Advocates say the payments are better than nothing but don't go far enough. (ABC News: Billy Cooper)

The increases to Centrelink payments were enough to be called a "win" by some players, but advocates say they are so small they won't make much difference. 

"People are stretched to the breaking point and $20 or $30 [per week] isn't going to change that," the Antipoverty Centre's Kristin O'Connell said.

Australian Council of Social Service CEO Cassandra Goldie added: "The government is providing an increase of $2.85 a day for people with the least. The Stage 3 tax cuts will deliver $25 a day to people on the highest incomes. We have our priorities wrong." 

Youth Allowance and Austudy are getting a boost, too

When reports surfaced last week suggesting the budget could include a boost only for those JobSeeker recipients aged over 55, many young Australians and students weren't impressed.

Fast forward a week and the budget has included a modest boost for both Youth Allowance and Austudy as well.

Both payments are going up by the same $2.86 per day as JobSeeker.

So if you're single, on Youth Allowance and living away from your parents, you'll soon be getting $602.80 per fortnight, or $43.06 per day.

The same rate will apply to those on Austudy who are single with no children.

More parents will be eligible for the single parenting payment

Earlier this week, the government announced it was expanding access to the single parenting payment as part of the budget. 

From September, support for those on the payment will continue until their youngest child reaches 14 years of age, instead of the current eight years of age.

Around 57,000 single parents will transition to a higher basic rate of $922.10 per fortnight, or $65.86 per day — an increase of $12.64 a day.

It's a move that'll primarily affect women — they make up 91 per cent of eligible single parents — and one that partly reverses changes made to the payment over a decade ago.

Commonwealth Rent Assistance is increasing

The maximum rate of Commonwealth Rent Assistance — that's a supplement for renters receiving various Centrelink payments — is set to increase by 15 per cent.

The government says it's the largest increase to the payment in more than 30 years, and it'll give people renting in the private market and in community housing up to an extra $31 a fortnight, or $2.21 a day.

Renters on the four payments we've just mentioned are eligible for Commonwealth Rent Assistance — so if that's you, you're in line for both the increase to your payment and the extra rent support

How much rent assistance you can get depends on a number of factors, which are detailed here on the Services Australia website.

Homelessness Australia CEO Kate Colvin welcomed the "important" boost, saying every dollar makes a difference "when people are struggling to put three meals a day on the table".

But she said it ultimately wouldn't make much difference to how people felt about their ability to pay the rent.

"It's just that rents have increased so much," she said.

ParentsNext is being abolished

The government announced last week it was going to scrap the ParentsNext program and create a new voluntary program to take its place.

ParentsNext required parenting payment recipients to attend compulsory meetings and activities designed to prepare them to go back to work.

But many participants — the majority of them women — found it made their lives harder

A parliamentary inquiry found the mutual obligations element of the program to be punitive and "akin to coercive control".

The program is still going and won't officially end until July 2024, when existing contracts expire. But as of last week, participants no longer receive financial penalties for missing an activity or appointment.

Guidelines around 'the couple rule' have changed to take domestic violence into account

This one wasn't part of the budget, but on Monday, an administrative change aimed at better supporting survivors of domestic violence kicked in. 

Centrelink workers will now consider whether domestic violence is a factor when determining if someone is part of a couple for social security purposes.

When you claim income support from Centrelink, you're asked to provide the government with your relationship status. If you have a partner, their income is also assessed, affecting your access to payments and how much you can get.

Advocates have long warned the so-called "couple rule" can have unfair effects on survivors of domestic violence and trap them in abusive relationships.

Advocacy group Economic Justice Australia, which represents community legal centres that advise people on Centrelink issues, has welcomed that change.

"Treating victim-survivors as though they are no longer a member of a couple so they can access the 'single' rate of payment, with their rate unaffected by their partner's income and assets, will give them the independent source of income they need to leave and rebuild a life in safety," its chief executive Leanne Ho said.

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