Upcoming government initiatives that will come into effect in 2025 seek to address the affordability crisis in Australia. These initiatives will also expand access to tangible social assistance benefits. To this end, the government, with effect from 2025, will introduce one-off payments to assist in the paying of basic living costs, as well as remove permit restrictions to simplify the administrative processes. Most significantly, the government will index pensions and social allowances to prices permanently, will restructure a number of social assistance schemes, and will simplify the schemes to increase financial relief and economic security to households in Australia.
| Payment/Program | Amount/Details | Timing |
|---|---|---|
| Cost-of-Living One-Off Payment | $700 | Sept–Oct 2025 |
| Pension/Fortnightly Boosts | Up to $29.70 increase per fortnight | From 20 Sept 2025 |
| Help to Buy Scheme | Up to 40% shared equity on homes | Ongoing in 2025 |
| Commonwealth Rent Assistance | 75 cents per dollar over rent threshold | Ongoing |
| Subsidised Childcare | 3 days free childcare per week | From Jan 2026 |
Centrelink Cost of Living Payment and Pension Payment Accounts
In 2025, one of the most important milestone changes will be the introduction of a special Centrelink payment of $700 to certain classes of Age Pensioners, Disability Support Pensioners, and Carer Payment recipients who are targeted beneficiaries. Payments will be credited automatically to the target beneficiaries between the months of September and October. Membership in this group is based on certain residency and income earning criteria. Additionally, from late September, fortnightly payment pensions and a number of social pensions will permanently be indexed supplemented by an up to $29.70 fortnightly indexation to assist with on-going inflation.
National Housing And Rent Assistance
Affordable housing is still one of the biggest pain points within the current economic system, and the government continues the expansion of the Help to Buy program which benefits first home buyers by enabling them to access government shared equity contributions to help reduce the size of the mortgage, therefore making homeownership easier.
Moreover, Commonwealth Rent Assistance continues to aid renters in private or community housing through income- and rent-based assessments with non-taxable subsidies. These schemes aid in the ex-ante home ownership and ongoing rental cost inflation.
Changes to Employment Law and Welfare Benefits
Updates to employment law have been made to enhance the protection of employees and the general framework of workplace safety. These changes include the increase in the minimum wage and superannuation contributions in the middle of 2025, the initiation of the Prevention of Sexual Harassment Plans in Queensland, and the enhancement of union authority to control workplace health and safety in NSW. These changes offer employees better protection as well as smoother resolution processes to work-related issues. On the other hand, the welfare changes have redefined some rules of eligibility for payments to better focus the assistance.
Extra Supportive for Families and Older Persons
Subsidy of childcare for families with children will commence in early 2026. This will replace the existing activity test for the Child Care Subsidy and will lower the cost of childcare considerably. Older persons will also benefit from expanded Medicare bulk-billing, more relief programs, and the rising cost of living pension increases.
