The Australian government has confirmed a new $398 one-off Centrelink payment to be delivered in 2025. This targeted boost is part of a broader cost-of-living relief package, aimed at helping vulnerable Australians manage soaring expenses, including groceries, rent, electricity, and fuel. Rising inflation has made it difficult for many households to keep up with daily bills, so the government has stepped in with direct support for people already receiving benefits.
Here is everything you need to know about the $398 Centrelink payment, including who qualifies, how it will be paid, and why it matters.
What the $398 Payment Is
The $398 Centrelink payment is a one-off, tax-free cash boost that will be automatically distributed to eligible Australians. Unlike the regular pension, carer, or unemployment payments that come fortnightly, this bonus is a single lump sum.
The aim is to provide quick relief at a time when inflation continues to push up the price of essentials. This payment is in line with other recent cost-of-living support measures and is specifically designed as extra help outside of normal indexation increases.
Who Will Receive the $398 Payment
The boost will not be available to every household but will instead be directed at people currently receiving government welfare support. Recipients include:
- Age Pension recipients (both singles and couples)
- Disability Support Pension (DSP) recipients
- Carer Payment recipients
- JobSeeker Payment claimants
- Youth Allowance recipients
- Austudy and student allowance recipients
Eligibility for this bonus will still depend on existing income and asset test rules. Those who meet the requirements for their current Centrelink payment will receive the $398 automatically.
How Much Will You Get and How It Will Be Paid
Each eligible person will receive $398 as a one-off bonus. It will be paid directly into the same bank account where regular Centrelink or Services Australia payments go. Importantly, there is no need to apply for the payment. If you are on one of the qualifying benefits, the payment will be automatically deposited when rollout begins.
| Category | Amount | Payment Type |
|---|---|---|
| Age Pension (single/couple) | $398 | One-off bonus |
| Disability Support Pension | $398 | One-off bonus |
| Carer Payment | $398 | One-off bonus |
| JobSeeker / Youth Allowance | $398 | One-off bonus |
| Austudy / Student Payments | $398 | One-off bonus |
Payment Schedule
The exact dates of rollout have not yet been confirmed, but the government has stated that the bonus will align with existing payment cycles. That means if you usually receive your Centrelink payment on a specific day each fortnight, the $398 payment should arrive alongside it once distribution begins in 2025.
This ensures a smooth process and avoids additional delays or paperwork for recipients.
Why the $398 Payment Matters
The $398 payment may not sound huge, but for many low-income households, it represents critical breathing space. With rents at record levels, grocery prices climbing, and energy bills higher than ever, even modest financial assistance helps cover urgent household needs.
Some ways families and individuals are expected to use the payment include:
- Covering several weeks of groceries
- Paying part of a quarterly power or gas bill
- Contributing to rent or mortgage payments
- Managing transport and fuel costs
- Offsetting medical or school expenses
For older Australians on fixed pensions and students living on limited allowances, the payment can relieve stress and provide more flexibility in their budgets.
Government’s Statement on the Payment
In announcing the payment, a government spokesperson said:
“This $398 payment is direct relief to those who need it most, ensuring support during challenging times.”
This highlights the government’s target: helping those least able to absorb additional costs. It also reflects growing recognition that indexation alone has not been enough to keep up with real-world expenses faced by welfare recipients.
How to Prepare for the Payment
Since the payment will be automatic, most people won’t need to do anything. However, payment delays can occur if Centrelink has outdated or incorrect details. To make sure your $398 lands when expected:
- Check that your bank account details in myGov or Centrelink are current.
- Update your home address and contact numbers if they have changed.
- Stay on top of income reporting requirements if you are receiving JobSeeker, Youth Allowance, or Austudy.
- Download the Express Plus Centrelink app for real-time updates and notifications.
Wider Impact of the $398 Relief
While the payment is framed as a response to high inflation, there are also broader economic benefits. By directing cash straight into households most likely to spend it, the payment will boost consumer demand in local supermarkets, service providers, and small businesses.
It also strengthens confidence for welfare recipients, bridging the gap between long-term adjustments and short-term needs. Still, experts caution that while one-off boosts are welcome, ongoing revisions to pension and allowance rates remain critical to addressing poverty in Australia.
What Comes Next
The $398 payment is one element of a wider cost-of-living relief package announced for 2025. Alongside this bonus, there are ongoing discussions about raising income thresholds and continuing indexed increases to pensions and welfare.
This suggests that while one-off boosts can provide temporary relief, the government also recognises the need for structural adjustments to welfare payments in future.
Final Thoughts
The $398 one-off Centrelink payment in 2025 is a welcome cushion for millions of Australians struggling with rent, electricity, fuel, and everyday costs. By targeting pensioners, carers, students, and unemployed Australians, the government is directing relief towards those who need help most.
Recipients will not need to apply, and the money will be delivered automatically via bank transfer. For many households, the payment could be the difference between slipping behind on bills and staying afloat during one of the toughest cost-of-living periods in recent memory.