Cost of Living Support in Australia: Eligibility, Amounts, Payment Dates, Claim Process

Updated on February 12, 2024

Find out all the information you need regarding the Cost of Living in Australia: eligibility criteria, the amount provided, payment dates, and how to claim it. The Cost of Living plays a crucial role in assessing poverty levels and the overall economy of the country. In response to this, the Australian Government has been offering allowances to assist low-income earners in meeting their expenses. Dive into the article to discover comprehensive details about the Cost of Living in Australia.

Cost of Living Australia

Australia, renowned for its stunning landscapes and vacation destinations, boasts a high cost of living. Despite the allowance provided, citizens grapple with financial challenges exacerbated by a soaring inflation rate. The Consumer Price Index reflects steep increases in the cost of goods and services, rendering them unmanageable for numerous households. According to data from the Australian Bureau of Statistics, food prices have surged by 8%, while travel and accommodation costs have risen by 12%. Medical service expenses have spiked by 6.7%, and electricity bills have skyrocketed by 12% over the past 12 months.

The report reveals that a significant portion of Australian citizens, ranging from one to eight percent, fall below the poverty line. In response, the Australian Government has allocated $1.5 billion to aid approximately 6 million families in maintaining a standard of living. Authorities have opted to augment funds for the upcoming year, resulting in an increase in allowances for each category under Centrelink. The basic amount issued to candidates stands at $250.

Cost of Living Australia Eligibility 2024

As mentioned earlier, expenses are on the rise, prompting the Australian Government to provide Cost of Living allowances based on specific guidelines. To qualify for the Cost of Living Allowance, candidates must adhere to certain eligibility criteria. This section will outline the fundamental details about the allowance.

1. They must be permanent residents of the country.
2. Immigrants must hold a visa for more than 10 years and have a 5-year history of residency in Australia.
3. Beneficiaries must be present in the country during the disbursement of the allowance.
4. Widows in Australia can also apply for benefits, provided they have a minimum residency history of 104 weeks in the country.

Candidates must qualify for two liability tests to receive the benefit. The mandatory tests are outlined below:

Asset Test: This test evaluates the individual’s viability based on their assets during disbursement. For singles without property ownership, the minimum asset limit is AU$301,750. However, if they own a property, the limit is AU$543,750. For couples jointly owning a house, the limit is AU$451,500, while for those without property, it’s AU$693,500.

Income Test: The income test sets minimum threshold limits. For singles, the threshold is AU$2,937, while for couples, it’s AU$3,666.

Cost of Living Australia Amount 2024

All candidates will receive a basic pay of $250. The additional amount of the allowance depends on the household’s circumstances.

All the amount will be deposited into the Income Management Account, which recipients can access anytime, along with the Enhanced Account accessible via a smartcard.

Cost of Living Australia Payment Dates 2024

The cost of the allowance is issued to the receiver every fortnight, with each allowance under Centrelink scheduled for release accordingly. Candidates can anticipate receiving their next allowance in the upcoming days.

With the increased inflation, as discussed in the sections above, the amount of the allowance has also been increased. Beneficiaries may notice the increment in their deposits in the next paychecks.

How to Claim Cost of Living Australia?

To claim the allowance, candidates should link their MyGov Account with their Centrelink account, following the procedure outlined below:

1. Link the Centrelink account to the bank account and update it on the “My Gov” portal.
2. Once registered with the Centrelink account, applicants are automatically eligible to receive the allowance and do not need to reapply for benefits.
3. Authorities will verify the eligibility of your account for upcoming benefits and notify you through the Centrelink account if eligible.
4. Approval of the concession card is mandatory to receive the allowance.
5. Beneficiaries can claim the amount using the DVA online account through “My Gov.”
6. When the accounts are approved or the allowance is deposited, authorities will send a notice regarding the account status.