Boosting workforce participation and strengthening the social security safety net

2024–25 May Budget

The Australian Government will provide over $3 billion to enhance Paid Parental Leave, remove barriers to employment, and provide cost-of-living relief and more support in the social security safety net.

Commonwealth Rent Assistance boost

The maximum rates of Commonwealth Rent Assistance will be further increased by 10 per cent, on 20 September 2024. Close to a million Commonwealth Rent Assistance recipient households will benefit. This builds on the 15 per cent increase from 20 September 2023.

Households can benefit by up to $18.80 per fortnight for single person households and up to $25.06 for families with children. These amounts will also be indexed on 20 September 2024 in line with the usual schedule.

Since the Government was elected in May 2022, maximum rates of Commonwealth Rent Assistance have increased by 42 per cent (combined with indexation), reducing out-of-pocket rental costs for maximum rate recipients.

Changing the 25 hour per week participation rule for Carer Payment recipients to instead allow up to 100 hours over a 4-week settlement period, providing carers with greater flexibility and choice to structure their work commitments around their caring responsibilities. Around 31,000 Carer Payment recipients currently report employment earnings and may benefit from the ability to work more flexibly.

Extending the higher rate of JobSeeker Payment to single recipients with a partial capacity to work of under 15 hours per week. This will benefit around 4,700 single recipients with a partial capacity to work of 0-14 hours per week who currently receive the base rate of JobSeeker Payment. These recipients will benefit from at least an additional $54.90 a fortnight (including Energy Supplement).

Since the Government was elected in May 2022, the rate of JobSeeker Payment has increased by $120 per fortnight, or 18.7 per cent, providing over $3,100 in additional support each year.

Investing $1.1 billion to pay superannuation on Government funded Paid Parental Leave to enhance economic security and gender equality. Eligible parents with babies born or adopted on or after 1 July 2025 will receive an additional 12 per cent of their Government-funded Paid Parental Leave as a contribution to their superannuation fund. Around 180,000 women will benefit each year. This will help normalise parental leave as a workplace entitlement, like annual and sick leave, and reduce the impact of parental leave on retirement incomes.

Providing $10 million to Services Australia to improve the experience of employers, particularly small business, when administering Paid Parental Leave.

Investing $1.4 million to update Paid Parental Leave communication products to make it easier for parents to understand how the scheme is changing.

Freezing social security deeming rates for a further 12 months to 30 June 2025, extending the two-year freeze that began on 1 July 2022. The lower deeming rate will remain at 0.25 per cent and the upper rate will remain at 2.25 per cent until 30 June 2025. Around 876,000 current income support recipients will benefit from this measure. Over half of these recipients (approximately 450,000) receive the Age Pension, around 16 per cent (approximately 136,000) receive JobSeeker Payment and 11 per cent (approximately 96,000) receive Parenting Payment Single.

Changes to the Carer Payment participation rules will commence from 20 March 2025, subject to the passage of legislation.

The higher rate for single JobSeeker Payment recipients who have an assessed partial capacity to work of 0-14 hours per week will commence from 20 September 2024, subject to the passage of legislation.

Indexation of eligible payment rates will also take place as usual on 20 September 2024.

The introduction of superannuation payments for Paid Parental Leave will commence on 1 July 2025, subject to the passage of legislation.

For more information about these measures and other Department of Social Services’ Budget measures, visit the Department of Social Services website (dss.gov.au).

For information about the 2024-25 May Budget, visit the Australian Government Budget(Opens in a new tab/window) website (budget.gov.au(Opens in a new tab/window)).