As living costs continue to rise across Australia, many residents are asking: when will the next cost-of-living relief payment arrive, and who is eligible? This article provides a full update on the 2025 position, what the key announcements from the government are, and what you should expect.
What is the “Cost of Living Payment”?
The term “Cost of Living Payment” has been used for targeted relief payments by the Australian Government via Services Australia (Centrelink) and the Department of Veterans’ Affairs for eligible recipients. Most recently, the dedicated payment titled the “Cost of Living Payment” ended on 30 June 2023.
However, subsequent budget and indexation measures in 2024-25 and 2025-26 have introduced other forms of support (such as rebates, automatic indexation of payments and thresholds) that effectively serve as cost-of-living relief.
Is there a brand-new one-off “Cost of Living Payment” in 2025?
As of this writing (October 2025), there is no official announcement via Services Australia of a new payment titled exactly “Cost of Living Payment” for 2025 in the same way as the 2022-23 one-off $250 payment. The official Services Australia page states the payment “stopped from 30 June 2023”.
That said, there are several other relief measures for 2025 which people might assume are “cost-of-living payments”.
What are the 2025 relief & indexation measures you should know
Here are the key recent measures that provide support for living-cost pressures:
From 1 July 2025 millions of Australians receiving social security payments will see their rates and thresholds increase by approximately 2.4 % through standard indexation.
From 20 September 2025, a further “cash boost” (in effect a permanent increase to eligibility/payment rates) will apply across a range of payments including Age Pension, JobSeeker, Youth Allowance, Carer Payment and more.
The 2025-26 Federal Budget outlined additional cost-of-living support measures — for example energy bill rebates, tax cuts and household/utility relief.
So when will it be paid?
Since there is no standalone “Cost of Living Payment (2025)” exactly in the format of past one-off payments, the question of “when will it be paid?” depends on which measure you are referring to. Here are the timing details:
If you’re referring to increased ongoing payment rates and thresholds (indexation): the changes took effect 1 July 2025, and then again 20 September 2025 for the September update.
If you were expecting a one-off lump sum payment labelled “Cost of Living Payment 2025,” none has been formally announced or rolled out by Services Australia as at October 2025.
Who is eligible for the relief?
Eligibility depends on the specific payment or allowance in question (Age Pension, JobSeeker, Youth Allowance, etc.). Some key general rules:
- You must be a resident of Australia and meet the residency test (usually living in Australia and being an Australian resident).
- You must be an existing recipient of the underlying payment or allowance that is being increased (for example Age Pension, JobSeeker Payment).
- For the indexation and “cash boost” changes, you do not need to apply separately — the increases will flow automatically if you already qualify for the payment.
Tips: What you should do if you’re eligible
- Check your myGov account and ensure your bank details are correct so any payment change reaches you.
- If you receive a payment from Services Australia, check the Communication tab or recent letters to see your new rate from 1 July and 20 September 2025.
- Keep an eye on the official Services Australia website for updates in case a new one-off payment is later announced.
- Beware of scams claiming new “cost-of-living bonus payments” — these may be fraudulent.
Why this matters (and what to watch out for)
With inflation, higher utility and food costs, and pressure on household budgets, indexation and rebates are a crucial part of keeping support payments aligned with real-world costs. The 2025 measures reflect that: for example, income and asset thresholds for pensions were adjusted, and new rebates for electricity bills introduced.
FAQs
Q: Is the 2025 “Cost of Living Payment” the same as the one paid in 2022?
A: No. The 2022-23 version was a one-off payment of $250, paid to eligible recipients. The current relief efforts are different (ongoing increases/rebates/indexation) rather than a single labeled payment.
Q: Do I need to apply for the payment increase?
A: For the indexation/cash boost measures, no separate application is required if you are already receiving the relevant payment. The process is automatic.
Q: When will I see the payment in my bank account?
A: If you are eligible for ongoing payment increases, the first effects were from 1 July 2025. If your payment is fortnightly, you’ll see it in your next payment after that date. The September boost takes effect from 20 September 2025.
Q: What if I expected a separate lump-sum relief payment and haven’t received anything?
A: That’s because no such lump-sum “Cost of Living Payment 2025” has been officially announced by Services Australia yet. Stay alert to official announcements and treat unsolicited claims with caution (they may be scams).
Final Word
While there is not a new lump-sum “Cost of Living Payment 2025” publicised by Services Australia at this stage, there are significant relief measures for 2025 via indexing of payments from 1 July and a further boost from 20 September. If you are a recipient of Age Pension, JobSeeker, Youth Allowance or a related allowance, you should already be receiving the higher rate or expect it very soon. The key to watch is any further announcement of a standalone payment.
