Struggling to keep up with rising costs? The Australian government is rolling out a one-off $398 Centrelink payment in 2025 to help millions of Aussies cope with soaring prices for groceries, rent, and utilities. This tax-free cash injection targets pensioners, carers, job seekers, and students on Centrelink benefits.
Here’s everything you need to know about who qualifies, when it arrives, and how to make it count.
What Is the $398 Centrelink Payment?
The $398 payment is a one-time, tax-free bonus designed to ease financial stress caused by inflation. Unlike regular Centrelink payments, it’s a lump sum that lands directly in your bank account, offering quick relief for essentials like food, bills, or fuel. It’s part of a broader 2025 cost-of-living relief package.
Why This Boost Matters
With inflation pushing up costs—think 6% increases in groceries and energy bills—many households are stretched thin. The $398 boost provides immediate support for those on fixed incomes, like pensioners and students. “We’re helping Aussies cover the basics,” a government spokesperson said, highlighting the payment’s role in tackling economic pressures.
Who Qualifies for the $398 Payment?
This payment targets Australians already receiving Centrelink benefits in 2025. You’re likely eligible if you’re on:
- Age Pension: Singles or couples, full or part-pensioners.
- Disability Support Pension (DSP): Those with disabilities.
- Carer Payment: Caregivers supporting others.
- JobSeeker Payment: Unemployed individuals seeking work.
- Youth Allowance: Students or young job seekers.
- Austudy or ABSTUDY: Students in approved courses.
Eligibility Requirements
- Residency: Must be an Australian resident.
- Active Benefits: Receive an eligible Centrelink payment by the cut-off date (to be confirmed in 2025).
- Income/Assets: Meet your benefit’s income and asset tests.
| Recipient Type | Eligible for $398 Boost? | Notes |
|---|---|---|
| Age Pension | Yes | Full or part-pensioners, subject to tests |
| Disability Support Pension | Yes | Must meet DSP rules |
| Carer Payment | Yes | For registered carers |
| JobSeeker | Yes | For active recipients |
| Youth Allowance | Yes | For students or job seekers |
| Austudy/ABSTUDY | Yes | For students in approved courses |
Note: Couples where both partners receive eligible payments get $398 each, totaling $796 per household.
When and How Will Payments Arrive?
The $398 payment will roll out in 2025, likely starting early in the year, aligned with your regular Centrelink payment cycle. It’s a one-off deposit to your linked bank account, with no application needed. Exact dates will be confirmed closer to the rollout.
Payment Details
| Detail | Information |
|---|---|
| Payment Amount | $398 (tax-free, one-time) |
| Start Date | Early 2025 (varies by payment cycle) |
| Eligible Recipients | Active Centrelink payment recipients |
| Payment Method | Direct deposit to linked bank account |
| Application Required? | No, automatic for eligible recipients |
Note: Check MyGov or the Centrelink app for payment updates.
How to Check Your Payment Status
- Log into MyGov and go to the “Payments and Claims” section.
- Look under “Next Payments” or “Payment History” for the $398 deposit.
- Visit the Services Australia website for official announcements.
How to Use the $398 Boost
This payment can make a real difference. Here’s how you could use it:
- Groceries: Cover two to three weeks of essentials like rice, pasta, or fresh produce.
- Utilities: Pay part of an electricity or gas bill to avoid penalties.
- Transport: Cover fuel or public transport costs for work or errands.
- Medical Needs: Pay for prescriptions or doctor visits.
- Small Debts: Clear credit card balances to reduce interest.
Money-Saving Tips
- Prioritize Bills: Pay overdue utilities or rent first.
- Shop Smart: Buy in bulk or during sales to stretch your grocery budget.
- Save a Portion: Set aside some funds for emergencies, like car repairs.
- Track Spending: Use budgeting apps like Pocketbook to maximize the $398.
How This Fits with Other 2025 Support
The $398 boost is separate from other Centrelink payments, like the $761 JobSeeker payment or pension indexation. It won’t affect your regular benefits or income tests, so you can use it freely for immediate needs.
Why Is the Government Offering This?
Inflation is making life tougher for low-income households, from seniors to students. The $398 payment targets Centrelink recipients to ensure quick relief reaches those who need it most. It also boosts local economies by encouraging spending at supermarkets, pharmacies, and small businesses.
FAQs About the $398 Centrelink Payment
Who is eligible for the $398 payment?
Recipients of Age Pension, DSP, Carer Payment, JobSeeker, Youth Allowance, Austudy, or ABSTUDY who meet residency and income/asset tests.
Do I need to apply for the $398 boost?
No, it’s automatic for eligible Centrelink recipients with active benefits.
When will the $398 be paid?
Starting early 2025, aligned with your regular Centrelink payment cycle.
Is the $398 payment taxable?
No, it’s tax-free and won’t affect your income tax return.
Can couples both receive the $398?
Yes, if both partners are eligible Centrelink recipients, each gets $398, totaling $796 per household.
What if I don’t receive the payment?
Contact Centrelink via MyGov or call 132 300 to check your eligibility or payment status.
Get Ready for Your $398 Boost
The $398 Centrelink payment in 2025 is a welcome relief for millions facing rising costs. Log into MyGov now to update your bank details and confirm your eligibility. Plan how to use this cash—whether for groceries, bills, or a small buffer—and make it work for you. Stay updated through Services Australia and ease your financial stress in 2025!