As the cost of living continues to rise across Australia, the government is stepping in with targeted financial support. In 2025, eligible citizens will receive a $500 Cost of Living Payment to help ease the burden of inflation, covering essential needs like food, rent, fuel, and bills.
This one-time payment is designed to provide immediate relief to Australians on various government support payments. Here’s everything you need to know.
What Is the $500 Cost of Living Payment?
The $500 Cost of Living Payment is a tax-free, lump sum payout designed to assist low- and middle-income Australians dealing with the ongoing rise in living expenses. It is not a loan or an advance, and recipients are not required to pay it back.
The payment will be automatically deposited into the accounts of eligible individuals starting in early 2025, depending on their benefit category and payment cycle.
Who Is Eligible in 2025?
To receive the $500 payment, you must be an Australian resident and be receiving one of the following payments as of the eligibility date:
| Eligible Group | Status Required |
|---|---|
| Age Pension | Currently receiving |
| Disability Support Pension (DSP) | Currently receiving |
| Carer Payment | Currently receiving |
| JobSeeker Payment | Currently receiving |
| Parenting Payment | Currently receiving (single or partnered) |
| Youth Allowance, Austudy, ABSTUDY | Currently receiving |
| Commonwealth Seniors Health Card | Valid and active cardholder |
| Veterans’ Affairs Payments | Currently receiving |
No additional application is needed. The payment will be processed automatically for those who meet the criteria.
Payment Schedule for 2025
The rollout of the $500 payment will be done in stages across different recipient groups. Here’s a general overview:
| Recipient Category | Estimated Payment Window |
|---|---|
| Age Pension, DSP, Carer Payment | March–April 2025 |
| JobSeeker, Parenting Payment | April–May 2025 |
| Youth Allowance, Austudy, ABSTUDY | May–June 2025 |
| CSHC and DVA recipients | June 2025 |
Payments will be transferred directly into the bank accounts registered with Centrelink.
How Will the Payment Be Delivered?
The $500 payment will be made through electronic bank transfer. To ensure there are no delays:
- Log into myGov and confirm your bank account details
- Update your contact information if necessary
- Keep an eye on payment notifications through your Centrelink account
Will This Affect My Other Payments?
No. The $500 payment is non-taxable, and it will not affect your eligibility or amounts for other Centrelink benefits. It is not counted as income or assets.
This ensures that recipients can enjoy the full benefit of the payment without any deductions or disruptions to their regular support.
The $500 Cost of Living Payment in 2025 is a timely lifeline for millions of Australians facing rising everyday costs. Whether you’re a pensioner, carer, jobseeker, or student receiving government assistance, this payment is aimed at easing financial stress during a challenging period.
Make sure your Centrelink and myGov details are up to date to receive your payment smoothly. For many, this boost will help cover crucial living expenses, providing some much-needed breathing room.
FAQs
Do I need to apply for the $500 payment?
No application is needed. If you receive one of the listed payments, you’ll be paid automatically.
What if I haven’t received my payment by the end of my group’s payment window?
Log in to myGov to confirm your banking details are correct. If everything is accurate and you still haven’t received the payment, contact Centrelink for assistance.
Will this one-time payment come again later in the year?
Currently, this is a single payment for 2025. Future support measures will depend on budget decisions and national economic conditions.