Increases to welfare payments set to fight cost-of-living crisis

An extra $40 per fortnight will appear in payments for people receiving JobSeeker, Youth Allowance, Austudy, ABSTUDY and the Youth Disability Support Pension on top of a $16 bump from indexation.

The federal government announced the changes as part of the $14.6 billion package to tackle the cost-of-living crisis in the May budget.

Social Services Minister Amanda Rishworth said the payments will "make a difference" for those struggling under financial pressures.

"We know that many people are doing it tough right now and they expect us to assist where we can to help with the cost of living, particularly for those on the lowest incomes. And that's exactly what we're doing," she said.

Single adult pensioners can expect an extra $32.70 per fortnight bringing their payment to $1,096.70. While partnered pensioners will receive a bump of $24.70 to reach $826.70 per person.

Disability maximum rates of payment increased by $40 across the board and the disqualifying income and asset limits were also raised for disability payments.

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Single JobSeeker recipients, over 22-years-old and with no children, will collect an additional $56.10 per fortnight raising the total payment to $749.20.

Single parents on JobSeeker will receive an extra $57.30 and partnered parents will get another $54.80.

Renters on income support can expect an extra $27.60 fortnightly after the government expanded Commonwealth Rent Assistance by 15 per cent.

National Seniors Australia chief advocate Ian Henschke the payment increase are "a good start" but more needs to be done to support renters.

"We recently heard from a couple paying $920 a fortnight in rent. As pensioners, this leaves them with only $907.40 a fortnight to pay for food, fuel, utilities, and other expenses," he said.

Greens senator Janet Rice said "the changes coming into effect today don't bring Jobseeker, student and youth allowance payments close to the poverty line, let alone make them enough to live on," she said.

"People on Jobseeker will still struggle to afford food as well as their medicine, more and more students will abandon their studies because they can't afford to study and pay the rent," she said.