From 1 July 2025, a range of rates, thresholds, and limits will increase by 2.4 per cent to ensure they keep pace with the cost of living. 

Indexation keeps payment rates and thresholds in line with the wider economy and makes sure our social security system remains a safety net that Australians can rely on.

For families receiving Family Tax Benefit Part A, the maximum rate of payment for children aged under 13 will increase to a new rate of $227.36 a fortnight, an increase of over $36 since Labor first took office. For children aged 13 or over, the rate will increase to $295.82 a fortnight.

The maximum rate of Family Tax Benefit Part B will increase to $193.34, an increase of over $30 since May 2022. For families with a youngest child aged five or over, the rate will increase to $134.96 a fortnight.  

More than 2.4 million recipients of social security payments will benefit from the changes commencing from 1 July.

The Paid Parental Leave (PPL) annual income limits will also increase – with the individual limit increasing to $180,007 per annum and the family limit increasing to $373,094 per annum. The PPL reforms Labor introduced from 1 July 2023 have already helped over 380,000 parents.

Other key changes from 1 July 2025 include increases to:

• Family Tax Benefit Part A and Part B income thresholds and related supplements
• asset limits for recipients of JobSeeker Payment, Youth Allowance, Austudy, ABSTUDY Living Allowance, Parenting Payment, and Special Benefit
• the income threshold for Parenting Payment Single
• income and assets thresholds for Age Pension, Disability Support Pension and Carer Payment
• deeming thresholds for financial assets
• the rate of Essential Medical Equipment Payment.

Payment rates and thresholds are indexed on a regular basis, with youth and student payments indexed in January, and pensions and allowances in March and September.

Full details of the new rates and thresholds can be found on the Department of Social Services website.

As at 12 June 2025.