Pensions and payments for almost five million Australians to rise

The consumer price index rose at an annual rate of 6.1 per cent in the June quarter, the fastest yearly growth since 2001.

Minister for Social Services Amanda Rishworth on Monday announced indexation increases to allowances which are the largest in 30 years and the biggest rise to pensions in 12 years.

"We want to ensure Australia has a strong social security safety net to protect our most disadvantaged," Ms Rishworth said in a statement.

"Our guiding principles as a government are ensuring no one is left behind and no one is held back and this indexation increase will help those on government payments keep up with the cost of living."

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The age pension, disability support pension and carer payment are all set to rise later this month by $38.90 a fortnight for singles to $1026.50 and $58.80 a fortnight for couples combined at $1547.60. The changes only apply to disability support pension recipients over the age pension age.

It comes after the jobs and skills summit announcement that aged and service pension recipients will be able to earn more without having their payments reduced.

The JobSeeker rate for singles without children will increase by $25.70 a fortnight to $677.20, while parenting payment single will rise by $35.20 per fortnight to $927.40 and the rate for partnered JobSeeker and parenting payment recipients will increase by $23.40 a fortnight to $616.60 including energy supplement.

Some income and asset limits will also change to allow more people to access a part pension.