The cost of living in Australia continues to climb, with many households feeling the pinch more than ever. Groceries, petrol, housing – it seems like everything costs more these days. If you’re finding it tough to make ends meet, there might be some relief on the horizon. Centrelink is rolling out a new support payment in 2025, and you could be eligible for up to $2,890.
I remember when my cousin Sarah was struggling after losing her job during the pandemic. The support payment she received from Centrelink was a lifeline that helped her keep her head above water until she found her feet again. For many Australians like Sarah, these support payments aren’t just numbers – they’re the difference between paying the rent or facing eviction, between putting food on the table or going hungry.
Let’s take a deep dive into this new payment, who qualifies, and how you can make sure you don’t miss out if you’re eligible.
Also Read: $1,735 Centrelink Payment Revised Latest Changes And Eligibility
What Is the New Centrelink Payment?
This newly announced support payment of $2,890 represents one of the more substantial one-off payments Centrelink has offered in recent years. The payment is designed specifically to provide financial relief to vulnerable Australians facing economic hardship in the current challenging economic climate.
The payment comes as part of the government’s broader economic support package aimed at addressing the ongoing cost-of-living crisis affecting many Australian households. Unlike some previous payments that were automatically distributed, this payment will require eligible recipients to apply, making it crucial to understand the qualification criteria.
I spoke with James, a financial counselor with over 15 years of experience helping people navigate Centrelink benefits. “This payment is targeted specifically at those who are genuinely struggling,” he told me over coffee last week. “The government has designed it to help those who need it most, but the application process means people need to be proactive about claiming what they’re entitled to.”
Who Is Eligible for the $2,890 Payment?
Eligibility for this payment isn’t as straightforward as some previous Centrelink benefits. The government has established specific criteria to ensure the money reaches those most in need. You may qualify if you fall into one or more of these categories:
Current Benefit Recipients
If you’re already receiving certain Centrelink payments, you might automatically qualify for this new support payment. These include:
- JobSeeker Payment
- Youth Allowance
- Disability Support Pension
- Carer Payment
- Age Pension
- Parenting Payment
- Austudy
However, not everyone on these payments will automatically qualify – your income and assets will still be assessed against the thresholds.
Walking through Centrelink’s Parramatta office last month, I met Donna, a single mother of three who receives Parenting Payment. “These extra payments make such a difference,” she said, bouncing her youngest on her knee. “Last year’s supplement meant I could finally replace our broken fridge instead of watching all our food spoil in summer.”
Income Thresholds
The payment is means-tested, with different income thresholds applying depending on your circumstances:
- Single people: annual income under $53,000
- Couples: combined annual income under $85,000
- Single parents: annual income under $65,000 plus $3,500 for each dependent child
These thresholds reflect the government’s intention to target support at low and middle-income Australians who are feeling the effects of inflation most acutely.
Asset Test
In addition to income testing, there are asset limits that apply:
- Single homeowners: assets under $270,000 (excluding the family home)
- Single non-homeowners: assets under $487,000
- Couple homeowners: combined assets under $405,000 (excluding the family home)
- Couple non-homeowners: combined assets under $622,000
These asset limits are designed to ensure that those with significant assets but low income don’t qualify over those with genuine needs.
My neighbor Tom, a self-funded retiree, was initially confused about whether he’d qualify. “My income is below the threshold since I retired, but I wasn’t sure how they’d view my superannuation,” he explained while we were both walking our dogs one morning. After checking with Centrelink, he found his assets would likely put him just over the threshold.
Hardship Provisions
Recognizing that numbers on paper don’t always tell the full story, Centrelink has included special hardship provisions. These may allow people who exceed the income or asset limits to still qualify if they can demonstrate significant financial hardship due to:
- Unexpected medical expenses
- Natural disaster impacts
- Loss of employment
- Domestic violence situations
- Housing crisis
These provisions acknowledge that life is complicated and sometimes people who appear to be doing okay on paper are facing genuine struggles.
How to Apply for the Payment
Unlike some previous economic support payments, this one won’t be automatically distributed to all eligible recipients. You’ll need to apply specifically for this payment, even if you’re already receiving Centrelink benefits.
Application Process
The application process will open in February 2025, with payments expected to begin flowing from March onwards. You can apply through:
- The myGov website (linked to your Centrelink account)
- The Centrelink mobile app
- In person at a Centrelink service center
- By calling the dedicated payment hotline (to be announced)
When applying, you’ll need to provide:
- Proof of identity
- Income details for the previous financial year
- Asset information
- Bank account details for payment
- Evidence of any special hardship circumstances (if applicable)
I helped my elderly aunt apply for a different Centrelink payment last year, and we found the online process surprisingly straightforward. “I was dreading it,” she admitted afterward, “but it only took about 20 minutes, and most of my information was already in their system.”
Important Deadlines
Applications will be open for a limited time only:
- Opening date: February 10, 2025
- Closing date: May 31, 2025
Missing the deadline means missing out on the payment entirely, so it’s worth marking these dates in your calendar now.
How the Payment Will Be Distributed
For those who qualify, understanding how and when you’ll receive the money is important for financial planning.
Payment Method
The $2,890 will be paid as a lump sum directly into your nominated bank account. Unlike some previous support payments, this won’t be split into multiple installments.
Payment Timeline
Once approved, payments are expected to be processed within:
- 5-7 business days for digital applications
- 10-14 business days for paper applications or those made in person
- Applications claiming special hardship provisions may take longer to assess
My friend Lisa, a casual worker whose hours were cut dramatically last year, received a different support payment last winter. “The money appeared in my account exactly one week after my application was approved,” she told me. “I was able to stock up on groceries and pay ahead on my electricity bill before the next bill shock hit.”
Common Questions and Misconceptions
There’s already some confusion circulating about this payment. Let’s clear up some common questions:
Will This Payment Affect Other Benefits?
No, this is a one-off supplementary payment that won’t affect your ongoing Centrelink benefits. It’s also tax-free, meaning you won’t need to declare it as income on your tax return.
Can Temporary Residents Apply?
Generally, this payment is limited to Australian citizens, permanent residents, and protected Special Category visa holders. However, some humanitarian visa holders may also qualify under special provisions.
What If My Circumstances Change After Applying?
If your financial situation changes significantly between applying and the payment being processed, you’re obligated to notify Centrelink. This could affect your eligibility.
At a community information session I attended in Sydney last month, a Centrelink representative emphasized this point. “We understand circumstances change, and we’re not trying to catch people out,” she explained. “But we do need to make sure the support goes to those who truly need it.”
Preparing for Your Application
While applications won’t open until February, there are steps you can take now to prepare:
- Ensure your myGov and Centrelink accounts are active and details are up to date
- Gather documentation about your income and assets
- If you think you might qualify under hardship provisions, begin collecting supporting evidence
- Set a reminder for the application opening date
Being prepared means you can submit your application early, potentially receiving your payment sooner.
When my brother-in-law was preparing for a different Centrelink application last year, he realized his identification documents were out of date. “Getting everything sorted took weeks,” he told me over Sunday dinner. “I’m glad I checked well in advance.”
The Bigger Picture: Economic Support in Challenging Times
This payment is just one piece of a broader economic support strategy. The government has acknowledged that while inflation is gradually easing, many Australians continue to face significant cost-of-living pressures that won’t disappear overnight.
Walking through my local shopping centre yesterday, I couldn’t help but notice the number of empty shopfronts – a stark reminder of the economic challenges many communities are facing. For small business owners, pensioners, and working families alike, targeted financial support can make a meaningful difference.
As we move through 2025, further measures are expected to address specific pressure points in the economy, with particular focus on energy costs, housing affordability, and healthcare expenses.
If you think you might be eligible for this payment, it’s worth investigating further. The $2,890 could provide valuable breathing room in your budget during challenging economic times.
Remember that Centrelink staff are there to help. If you’re unsure about your eligibility or need assistance with the application process, don’t hesitate to reach out through the official channels.
Financial stress affects not just our bank accounts but our well-being, our relationships, and our health. Accessing support when it’s available isn’t just about money – it’s about taking care of yourself and those who depend on you.
Frequently Asked Questions
Q: Is the $2,890 payment taxable?
A: No, this payment is tax-free and doesn’t need to be declared as income on your tax return.
Q: Will receiving this payment affect my regular Centrelink benefits?
A: No, this is a supplementary payment that won’t impact your ongoing benefits.
Q: Can I apply if I’m working full-time?
A: Yes, eligibility is based on income thresholds rather than employment status.
Q: What if I’m over the asset limit but experiencing financial hardship?
A: You may still qualify under the special hardship provisions. Contact Centrelink to discuss your situation.
Q: How will I know if my application is approved?
A: You’ll receive notification through your myGov inbox, or by mail if you applied in person or by phone.