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01 March 2025

Australians Warned Of Centrelink Scams Amid Cost Of Living Payment Increase

Education on identifying fraudulent offers is key as Centrelink rolls out new cost-of-living support payments.

Australians are bracing for significant changes to Centrelink support as the government prepares to roll out its $1,144 cost of living payment, aimed at helping those struggling with rising living expenses. While many welcomed this initiative, recent reports have surfaced about scams falsely promising cash bonuses to exploit vulnerable individuals.

The $1,144 boost is part of the Australian government's biannual indexation adjustments, which aim to align social welfare payments with inflation. Recipients of various benefits, including the Age Pension, JobSeeker Payment, and Disability Support Pension, are set to receive these increases to help offset soaring costs.

Hank Jongen, General Manager of Services Australia, said, "These websites use clickbait headlines to attract high traffic by misleading people who are seeking financial support." He noted the urgency of the situation as online scams have proliferated, with offers falsely claiming guaranteed payments of $600 or even $890, with no official backing.

According to federal guidelines, these adjustments, effective from September 20, 2024, reflect data from inflation metrics, including the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI). Payments will automatically apply to those already qualified for welfare benefits without the need for additional applications.

The lifting of payments is expected to provide significant relief to many single Australians receiving the Age Pension, who will now see their fortnightly payments rise to $1,144.40, representing an increase of $28.10. Couples will also benefit, with their total fortnightly payment increasing to $1,725.20, showing just how pivotal these adjustments are amid rising costs.

Unfortunately, the announcement of these increases has presented opportunities for scammers. The false promise of $600 cash bonuses has made its rounds via social media and fraudulent websites, luring individuals seeking financial assistance. Jongen emphasized the prevalence of scams, urging citizens to remain vigilant and to report anything suspicious.

"The best way to avoid being misled is to disregard clickbait headlines and rely solely on verified information provided by official government websites or social media accounts," Jongen explained. The importance of utilizing trusted sources is underscored as the number of misleading offers seems to be increasing.

The fraudsters behind these scams not only aim to mislead individuals but risk compromising their personal data. Jongen cautioned, "While their primary intent seems to be generating advertising revenue from website visits, there’s also the risk of users inadvertently sharing personal information, which could lead to more scams. A good rule to follow is to never disclose your personal details, including your myGov login credentials, when presented with offers of unverified payment increases."

Centrelink payments, including Youth Allowance, Austudy, and Carer Allowance, part of regular indexation processes, are expected to increase as well. Starting January 1, these adjustments are significant as the cost of essentials continues to rise, impacting daily living. On the flip side, other payments are scheduled for indexation increases later and will begin effective March and September.

To protect themselves against these scams, Australians are encouraged to check if the website URL ends with '.gov.au' to verify it is part of the official Australian government sites. They should also refrain from clicking on suspicious links and should only access their Centrelink accounts through the official myGov platform.

The rise of misinformation poses significant risks as individuals may miss out on genuine help. With the potential benefits available, including rent assistance and energy rebates for eligible beneficiaries, Jongen stresses the importance of staying informed about real opportunities.

For those uncertain about their eligibility for the upcoming payments or missing the indexation increases, visiting the official Services Australia website and logging onto MyGov provides clarity and updates on payments and entitlements, ensuring individuals keep abreast of genuine financial assistance.

Lastly, Jongen encourages if anyone suspects they’ve been targeted by scams to report incidents to Scamwatch and to contact Services Australia directly. Verification of payment information is key to protecting oneself against fraud attempts.

With the approaching Centrelink payment increases, it is imperative for Australians to stay informed and vigilant to navigate potential scams successfully. The promise of genuine government assistance remains; vigilance is required to secure it.