If you are in receipt of Government Payments, you are in for a boost in the size of these payment from January 1st, 2022.
Recipients of youth allowance, student allowance and carer allowances will be increased from January 1st after the indexation rate was increased to 3.5%. This is the highest these allowances have been indexed in the last 10 years.
3.5% doesn’t sound like much, but it’s welcome relief with inflation at current highs.
If you receive any government payments, you still need to complete a Tax Return every year.
What does that actually mean in $$$?
Youth Allowances for youths living away from home will increase by $17.90 per fortnight. The previous payment was $519.50 and has now increased to $537.40. The change amounts to $465.40 per annum.
Youth Allowances for youths living at home will increase by $12.40 per fortnight. The previous payment was $359.20 and has now increased to $371.60. The change amounts to $322.40 per annum.
Austudy recipients will receive an increase of $17.90 per fortnight. The previous payment was $519.50 and has now increased to $537.40. The change amounts to $465.40 per annum.
Single Parenting Payments will also be increased from January 1st with a $23 per fortnight increase to those payments. Annually this amounts to a $598 increase and increases payments from $665.20 to $688.20 for fortnight.
How do you receive the increase?
The increase is automatically applied if you are already in receipt of the Youth Allowance, Austudy or the Single Parenting Payment. You will notice a bigger amount in the next payment.
How do you qualify for Youth Allowance?
Youth allowance is financial help if you’re 24 or younger and a student, or Australian Apprentice, or, 21 of younger and looking for work. Minimum age is 16 years old to qualify or 18 if you’re studying full time.
How do you qualify for Austudy?
Austudy is financial help if you’re 25 or older and studying or an Australian Apprentice. To qualify for a full payment you need to earn under $452 a fortnight. There is a tapering down of the payment the more you earn depending on your circumstances (single, married, kids, at home, out of home etc). For full details of the income test click here.
How do you qualify for the Single Parenting Payment?
The Single Parenting Payment is available if you are the principal carer for a child under 8 if you’re single or 6 if you’re partnered. There is a limit on the income your can earn to receive the full parenting payment. This depends on the number of children you have and is set out in the table below:
| Number of Children | Gross Income limit per fortnight to obtain full payment |
|---|---|
| 1 | $194.60 |
| 2 | $219.20 |
| 3 | $243.80 |
| Over 3 | $243.80 plus $ $24.60 for each extra child |
For full details on income limits click here.
How do you complete your tax return at the end of the year?
The quickest and easiest way to complete your tax return is to complete an online tax return using One Click Life. Completing an online tax return is easy and can be done in minutes. Check out our blog on how to complete you online tax return in minutes here.
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