The Australian federal government’s welfare spending is expected to exceed the rates outlined in the budget forecasts as it will be driven higher by top-ups to keep up with inflation.
According to the budget paper from September, the centre-left Labor government will increase the rate of income support welfare payments—including JobSeeker Payment, Austudy, and Youth Allowance—by A$40 (US$33.26) per fortnight, or $2.86 per day.
These payments will “continue to be automatically indexed to help keep pace with increases in the cost of living,” the budget paper noted.
Indexation is the adjustment of the price, wages, or other values for the effects of inflation, cost of living, or input prices over time….