Australia’s Cost of Living Payment is a government-backed relief measure introduced to help eligible Australians cope with rising expenses. As household bills surge, this one-time financial support is designed to ease pressure for individuals receiving social support payments. Below, we unpack what the payment is, who is eligible, how and when it’s delivered, and useful things to watch out for.
What Is the Cost of Living Payment?
The Cost of Living Payment was a non-taxable, one-off boost paid to certain recipients of social security benefits. According to Services Australia, the original payment scheme ended on 30 June 2023, meaning no further cost of living payment is currently provided under that specific name.
However, similar relief measures have been reintroduced in 2025 under new federal budget initiatives. These are sometimes referred to as cost-of-living relief payments, cash boosts, or one-off payments, depending on the scheme and the target group.
Why Was the Payment Introduced?
Rising inflation, energy costs, and everyday living expenses have put pressure on many Australians’ household budgets. To address this, the government introduced targeted payments to support:
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Low-income individuals and pensioners
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Recipients of Centrelink payments (e.g., JobSeeker, Youth Allowance, Parenting Payment)
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Veterans and people on Department of Veterans’ Affairs (DVA) payments
These payments are part of a broader package to provide cost-of-living support, including energy bill rebates and changes to social security policy.
Key 2025 Cost-of-Living Relief Payments
Here are some of the significant cost-of-living payments announced or delivered in 2025, plus who qualifies and when they are paid:
| Payment Amount | Who’s Eligible | When It’s Paid / Notes |
|---|---|---|
| $780 | Age Pensioners, JobSeeker, Youth Allowance, DVA recipients | Begins from mid-June 2025 (scheduled automatically). |
| $250 | Parenting Payment, Youth Allowance, Carer Payment, ABSTUDY, veterans | Distributed automatically; credit via existing Centrelink payment method. |
| $550 | Recipients of qualifying benefits (e.g., pensioners, jobseekers) | Paid in a staggered rollout between late August and September 2025. |
| $700 | Pensioners, JobSeeker, Disability Support Pension, Carer Payment recipients | Part of a one-off “cash boost” amount tied to the 2025–26 budget. |
How to Apply (or Not)
For most of these cost-of-living relief payments, no separate application is required. The payments are typically made automatically to people who already receive Centrelink or DVA benefits.
Tips to ensure you receive the payment:
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Keep your myGov account up to date – make sure your bank account and personal details are accurate.
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Check payment notifications via myGov or SMS.
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Don’t rely on third-party links or offers that ask you to “claim” a cost-of-living payment – scammers may use fake sites to trap people.
Things to Be Careful About
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Scams: There are fake websites claiming to offer cost-of-living bonus payments. Official services only operate via .gov.au domains.
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Not taxable: Historically, these payments were not taxable, and did not count as regular income to be reported.
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One-off relief: These payments are typically one-time boosts, not permanent increases to your social security benefit.
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Timing varies: Depending on your payment type, your relief payment may arrive in different weeks – but it will generally be credited to your linked account.
Why It Matters
These cost-of-living relief payments are an essential part of the government’s strategy to tackle inflation and rising household costs. They offer a short-term buffer for vulnerable Australians, helping with things like:
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Energy bills
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Groceries and daily expenses
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Rent or mortgage costs
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Healthcare and transport
In addition to these payments, the 2025–26 budget includes structural measures like energy bill rebates and changes to student loan repayment thresholds.
Bottom Line
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The original Cost of Living Payment program ended in June 2023.
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In 2025, the government introduced new one-off cost-of-living relief payments (e.g., $780, $700, $550, $250) targeted to social security recipients.
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Most eligible people do not need to apply — payments are automatic if you already receive Centrelink or DVA benefits.
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Always be aware of scams, and ensure your details are up to date on myGov.
FAQs
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Do I need to apply for the cost-of-living payment?
No — most eligible recipients receive it automatically via their Centrelink or DVA-linked bank account. -
Is the payment taxable?
No, these payments are generally non-taxable and do not need to be reported as regular income. -
How many cost-of-living payments are there in 2025?
There are several: for example, amounts of $780, $700, $550, and $250 have been announced for different groups. -
When will I receive my payment?
It depends on your payment type: some payments began in June 2025, others roll out later (e.g., August–September). -
How do I avoid scams related to these payments?
Only use official channels (e.g., myGov, Services Australia). Avoid any link that isn’t on a .gov.au website or asks for unnecessary personal data.
