Australian Social Welfare — Overview

Australia's social security system is tax-funded. There are no social insurance contributions for pensions, unemployment or family benefits: payments come from general taxation and mostly depend on a means test and a residence test. The federal agency Services Australia (Centrelink and Medicare) pays benefits, while the Australian Taxation Office (ATO) handles tax. Retirement income rests on two pillars: the tax-funded Age Pension and compulsory employer-paid superannuation.

Key points for newcomers:

• Residence is the gateway to almost every benefit. Citizens and permanent residents (PRs) can qualify; most temporary visa holders (student, working holiday, skilled 482 etc.) cannot get Centrelink payments.
• New PRs serve a Newly Arrived Resident's Waiting Period (NARWP). For visas granted since 1 January 2019 it is 4 years for JobSeeker Payment, Parenting Payment, Youth Allowance and Austudy, 2 years for Parental Leave Pay and Carer Payment, and 1 year for Family Tax Benefit Part A. There is no waiting period for Child Care Subsidy or Family Tax Benefit Part B. Some visa holders, such as refugees, are exempt.
• Medicare is usually the first benefit you notice: you can enrol once you hold a permanent visa (and in some cases once you have applied for one).
• Australia has social security agreements with about 30 countries (for example Canada, Germany, India, Japan, Korea, the Netherlands, New Zealand and the US) that can help you meet the minimum residence periods for some payments.

The areas at a glance

• Health (health) — Medicare (bulk-billed GP visits, free public hospital care), PBS medicines, private insurance incentives (rebate, Medicare levy surcharge, Lifetime Health Cover).
• Pension (pension) — Age Pension (age 67, means-tested, 10 years' residence), superannuation (employer pays 12% of earnings), social security agreements.
• Unemployment (unemployment) — JobSeeker Payment (flat, means-tested), waiting periods, mutual obligation requirements through Workforce Australia.
• Family (family) — Family Tax Benefit Parts A and B, Parenting Payment, Child Care Subsidy (at least 72 subsidised hours a fortnight since January 2026).
• Tax (tax) — ATO residency tests, income tax (15% second bracket from 2026–27), Medicare levy (2%), HELP loan repayments.
• Housing (housing) — state social housing, Commonwealth Rent Assistance, 5% Deposit Scheme for first home buyers, foreign buyer rules.
• Education (education) — free public schools, Commonwealth supported places and HECS-HELP for citizens, Youth Allowance and Austudy.
• Parental (parental) — Parental Leave Pay of 26 weeks for children born or adopted from 1 July 2026, paid at the national minimum wage, plus super contributions.

Things to watch

• Public hospitals, schools and social housing are run by the states and territories, so rules differ between them; check your state's website too.
• Most payment rates are indexed every 20 March and 20 September (family payments and Parental Leave Pay on 1 July). Amounts in these guides are 2026 figures; check the official pages before you claim.
• Temporary visa holders are generally not covered by Medicare unless they come from one of the 11 reciprocal health care agreement countries, and many visas require private Overseas Visitors Health Cover.
• First steps after arrival: a myGov account (linked to Centrelink, Medicare and the ATO), a Tax File Number, Medicare enrolment and a bank account.

Official guidance: Services Australia, Newly arrived resident's waiting period, ATO

Health — Medicare and the Private Insurance Layer

Australia's universal health system, Medicare, has run since 1 February 1984. It pays for doctor visits, tests and public hospital care for citizens and permanent residents and is funded from general taxation plus the Medicare levy (2% of taxable income). People aged 15 or older can have their own Medicare card; younger children are listed on a parent's card.

Who can enrol

• Permanent residents and citizens: you can enrol once you hold a permanent visa, and in many cases once you have applied for one. Enrol online through myGov with your passport or ImmiCard and visa details, or with the paper form.
• Reciprocal Health Care Agreements: visitors from 11 countries (Belgium, Finland, Ireland, Italy, Malta, the Netherlands, New Zealand, Norway, Slovenia, Sweden and the UK) can get medically necessary care under Medicare during their stay.
• Other temporary visa holders: generally not covered. Many visas require Overseas Visitors Health Cover (OVHC), and student visa holders need Overseas Student Health Cover (OSHC).

What is free or low-cost

• GP and specialist visits: if the doctor bulk-bills, you pay nothing; otherwise you pay the fee and claim back the Medicare benefit.
• Public hospitals: emergency care, admission and surgery as a public patient are free, but you cannot choose your doctor.
• Pharmaceutical Benefits Scheme (PBS): a listed prescription costs at most AUD 25.00, or AUD 7.70 with a concession card (2026; adjusted on 1 January). A safety net lowers costs further once your family's spending passes the yearly threshold.
• Mental health: with a GP's mental health treatment plan, Medicare pays part of up to 10 individual and 10 group sessions per calendar year with a psychologist or other eligible professional.

Private health insurance incentives

• Private health insurance rebate: for 1 July 2026 to 31 March 2027, singles under 65 with income up to AUD 105,000 get 24.118% of their premium back; the rebate falls to 16.079%, 8.038% and then 0% in higher income tiers (higher percentages from age 65).
• Medicare levy surcharge (MLS): without private hospital cover, singles with income above AUD 105,000 (families AUD 210,000) pay an extra 1% to 1.5% of income (2026–27; thresholds adjusted yearly).
• Lifetime Health Cover (LHC) loading: if you first take out hospital cover after your deadline, you pay 2% more for each year you are over 30, up to 70%, until you have held cover for 10 continuous years. For new migrants the deadline is the later of 1 July after your 31st birthday and the first anniversary of your full Medicare registration. OVHC and OSHC do not count.

Common pitfalls for newcomers

• Adult dental care, glasses and most physiotherapy are not covered by Medicare; you pay yourself or need "extras" cover.
• Missing the LHC deadline one year after Medicare registration makes private hospital cover more expensive for up to 10 years once you join.
• Assuming your home country has a reciprocal agreement: most countries do not, so keep private cover until your permanent visa is granted.
• In an emergency call 000; for 24/7 health advice call healthdirect on 1800 022 222.

Official guidance: Services Australia: Medicare, Reciprocal Health Care Agreements, PBS, privatehealth.gov.au

Pension — Age Pension plus Superannuation

Australian retirement income rests on two pillars: the tax-funded Age Pension and a compulsory superannuation ("super") account paid for by employers. You do not pay a separate pension contribution from your wage: super is paid by your employer on top of salary, and the Age Pension comes from general taxation.

Age Pension (public pension)

• Age: 67 or older; the government says there are no plans to change this.
• Residence: you must live in Australia as a citizen, permanent resident or protected SCV holder and generally have 10 years of Australian residence in total, at least 5 of them without a break. Refugees are exempt, and agreement countries can help (see below).
• Income and assets tests: both apply, and the one that gives the lower rate decides your payment. Your home is not counted in the assets test, but savings, shares, investment property and cars are.
• Amount: at most AUD 1,237.70 per fortnight for a single person and AUD 1,866.00 for a couple combined, including supplements (late 2026; adjusted every 20 March and 20 September). The Age Pension is taxable.

Superannuation

• Super guarantee (SG): employers must pay 12% of your earnings into your super fund (since 1 July 2025). Since 1 July 2026 they must pay it with each payday ("Payday Super") instead of quarterly.
• Tax: contributions and fund earnings are taxed at low rates (generally 15%), and most withdrawals after age 60 are tax-free.
• Access: generally from your preservation age of 60 once you retire, or at 65.
• Choice of fund: you can choose your own fund; if you don't, a new employer generally pays into your existing ("stapled") fund, so your super follows you from job to job.

Agreements with other countries

Australia has social security agreements with about 30 countries, for example Canada, Chile, Germany, India, Italy, Japan, Korea, the Netherlands, New Zealand and the US. There is no general EU-wide arrangement: each agreement is bilateral. Under an agreement, periods in the other country can help you meet the 10-year residence rule, and each country pays only its own part pension. The United Kingdom is not an agreement country. If your country is not on the official list, its periods cannot be counted.

Common pitfalls for newcomers

• Expecting a full Age Pension with less than 10 years' residence: without an agreement country, there is no partial pension before the 10 years are met.
• Not checking that your employer actually pays super: you can see contributions in myGov through the ATO.
• Temporary visa holders who leave Australia for good can claim their super as a Departing Australia Superannuation Payment (DASP), but the taxed element is taxed at 35%, or 65% for working holiday makers.
• Collecting several small super accounts with separate fees; use myGov to find and combine lost super.

Official guidance: Services Australia: Age Pension, International social security agreements, ATO: Super

Unemployment — JobSeeker Payment

Australia's main unemployment benefit is JobSeeker Payment, which replaced Newstart Allowance in 2020 and is paid by Services Australia (Centrelink). It is not an insurance benefit: you pay no premium, and the amount does not depend on your previous wage. Instead it is a flat, means-tested allowance for people on low income who are looking for work, or who are temporarily unable to work because of illness or injury.

Who can claim

• Age: from 22 up to Age Pension age (67). People aged 16 to 21 can claim Youth Allowance as job seekers instead.
• Residence: citizens and permanent residents who live in Australia. New permanent residents generally serve a 4-year Newly Arrived Resident's Waiting Period; refugees are exempt. Temporary visa holders cannot claim.
• Income and assets tests: payments reduce or stop above the limits, and your partner's income counts too. Your home is not counted as an asset.
• Mutual obligation requirements: you agree to a Job Plan and must meet it to keep getting paid (see below).

Amounts

Maximum fortnightly rates from 20 September 2026 (adjusted every 20 March and 20 September):

• AUD 824.90 single, no children
• AUD 883.30 single with a dependent child, or single and 55 or older after 9 continuous months on income support
• AUD 755.10 each for members of a couple

Renters may get Rent Assistance on top. JobSeeker Payment is taxable, and you must report your and your partner's income every fortnight, even if it is zero.

Waiting periods

Several waiting periods can apply before payment starts:

• Ordinary waiting period: up to one week.
• Liquid assets waiting period: 1 to 13 weeks if your readily available funds are at least AUD 5,500 (single, no dependants) or AUD 11,000 (partnered or with dependants).
• Income maintenance period: if you received leave or redundancy payments, you wait for the period they cover.
• Newly Arrived Resident's Waiting Period: 4 years for most new permanent residents.

Mutual obligation requirements

• Most job seekers are with Workforce Australia (online or through a provider) and must earn a monthly points target through job searches and other activities, attend appointments and accept suitable work.
• Missing requirements leads to demerits and then financial penalties.
• Requirements are different for principal carer parents, people aged 55 or older, people with a partial capacity to work and newly arrived refugees; exemptions are possible for illness or caring duties.

Common pitfalls for newcomers

• Expecting an earnings-related benefit: JobSeeker is a flat safety-net payment, so private savings or income protection insurance matter.
• Forgetting the 4-year waiting period after a permanent visa is granted; you can still use the Workforce Australia job search site during it.
• Not reporting income every fortnight, which leads to debts or cancelled payments.
• Special Benefit, a hardship payment, is mainly for certain temporary visa holders; permanent residents over 16 are usually not eligible.

Official guidance: Services Australia: JobSeeker Payment, Mutual obligation requirements, Workforce Australia

Family and Child Benefits — Family Tax Benefit and Parenting Payment

Australian family support rests on the Family Tax Benefit (FTB), Parenting Payment for low-income parents of young children, and the Child Care Subsidy (CCS). All are paid by Services Australia (Centrelink) and tested on the family's combined income.

Family Tax Benefit Part A — per child

• Who: the main carer of a child aged 0–15, or 16–19 in full-time secondary study.
• Amount: up to AUD 235.48 per fortnight for each child aged 0–12 and AUD 306.46 for each child aged 13–19; the base rate is AUD 75.60 (2026–27; adjusted every 1 July).
• Income test: full rate up to a family income of AUD 69,131, then reduced by 20 cents per dollar to the base rate, and by 30 cents per dollar above AUD 123,078.
• Balancing: payments based on your income estimate are balanced against your tax return after the year.

Family Tax Benefit Part B — per family

• For single parents (until the end of the year the youngest child turns 18, if still at school) and couples with one main earner whose youngest child is under 13.
• Up to AUD 200.34 per fortnight when the youngest child is 0–4 and AUD 139.86 when the youngest is 5–18 (2026–27).
• Not paid if the single parent's or main earner's income is above AUD 124,327.

Parenting Payment

• For the main carer of a child under 14 (single parents) or under 6 (couples); income and assets tested. Single parents have mutual obligation requirements once the youngest turns 6.
• From 20 September 2026: up to AUD 1,037.50 per fortnight plus a AUD 30.70 pension supplement for single parents, and AUD 755.10 for partnered parents.

Child Care Subsidy (CCS)

• Paid to the childcare service. Families with income up to AUD 88,520 get 90% of the fee (up to an hourly rate cap); the rate falls by 1% for every AUD 5,000 above that and reaches 0% at AUD 538,520 (2026; adjusted yearly).
• Since 5 January 2026 every eligible family gets at least 72 subsidised hours per fortnight for each child, whatever their work or study hours (up to 100 hours with more activity).

Other payments

• Newborn Upfront Payment (AUD 708 lump sum) and Newborn Supplement (up to AUD 2,125.76 over 13 weeks for a first child) for families eligible for FTB Part A who are not getting Parental Leave Pay for that child.
• Carer Payment / Carer Allowance for people caring for someone with a disability or illness.

Common pitfalls for newcomers

• New permanent residents wait 1 year for FTB Part A and 4 years for Parenting Payment; FTB Part B and the Child Care Subsidy have no waiting period.
• Not lodging your tax return (or telling Centrelink you don't need to) blocks balancing and can stop payments.
• An income estimate that is too low leads to a debt at balancing time; CCS withholds 5% each fortnight to reduce this risk.
• Your child's immunisations must be up to date: otherwise FTB Part A can be reduced and CCS stopped.

Official guidance: Services Australia: Family Tax Benefit, Parenting Payment, Child Care Subsidy

Tax — ATO Residency, Income Tax, Medicare Levy and HELP

Income tax in Australia is run by one federal agency, the Australian Taxation Office (ATO); there are no state or local income taxes. The financial (income) year runs from 1 July to 30 June, and most people lodge an individual tax return each year, online through myTax in myGov or with a registered tax agent. If you lodge yourself, the deadline is 31 October.

Tax residency

Your tax residency is decided by the ATO's tests, not by your visa. You are generally an Australian resident for tax purposes if you meet one of these tests:

• Resides test: you live in Australia in the ordinary sense (this is the main test).
• Domicile test: your permanent home is in Australia, unless your permanent place of abode is overseas.
• 183-day test: you are in Australia for 183 days or more in the income year, unless your usual home is overseas and you don't intend to live here.
• Commonwealth superannuation test: for certain Australian government employees working overseas.

Residents are taxed on their worldwide income; tax treaties with many countries help avoid double taxation. Foreign residents are taxed only on Australian income and get no tax-free threshold.

Resident tax rates 2026–27

• AUD 0–18,200: nil
• AUD 18,201–45,000: 15% (16% in 2025–26)
• AUD 45,001–135,000: 30%
• AUD 135,001–190,000: 37%
• AUD 190,001 and over: 45%

These rates do not include the Medicare levy. The 15% rate is legislated to fall to 14% from 1 July 2027.

Medicare levy and surcharge

• Medicare levy: 2% of taxable income, reduced or not payable on low incomes.
• Medicare levy surcharge: an extra 1% to 1.5% if you have no private hospital cover and your income for surcharge purposes is above AUD 105,000 (singles) or AUD 210,000 (families) in 2026–27.

HELP student loans

University students with a HECS-HELP loan (and other study loans) repay through the tax system once their income is high enough:

• 2026–27 repayments: nothing up to an income of AUD 69,528; above that, 15 cents per dollar over the threshold, rising to 17 cents above AUD 129,717, and 10% of total income from AUD 186,051. Since 2025–26 the rate applies only to income above the threshold.
• Indexation, not interest: on 1 June each year the debt is indexed by the lower of CPI and wage growth (2.8% in 2026).
• Living overseas does not end the obligation: you must report your worldwide income and repay through the ATO.

Common pitfalls for newcomers

• Starting work without a Tax File Number (TFN): if you have not provided it within 28 days, your employer must withhold 47% of your pay (45% for foreign residents).
• Assuming a visa type decides residency: a temporary visa holder can be a tax resident, and a permanent resident living abroad may not be.
• Forgetting to declare overseas income, bank interest or rental income from your home country.
• Keeping no records: work-related deductions such as working from home need receipts or a diary.

Official guidance: ATO, ATO: Tax rates for residents, ATO: Study loan repayment thresholds

Housing — Social Housing, Rent Assistance and Buying a Home

Housing support runs on three tracks: state and territory social housing, Commonwealth Rent Assistance (CRA) paid by Centrelink, and help for first home buyers; foreign buyers face separate foreign investment rules. As social housing waiting lists are long, most newcomers rent privately.

Social housing

• Run by state and territory housing agencies (for example Homes NSW and Homes Victoria), and by non-profit community housing providers.
• Eligibility: generally citizens and permanent residents whose household income and assets are below the state limits.
• Rent is subsidised and based on income: in NSW, for example, tenants pay 25% of household income, rising to up to 30% for moderate incomes.
• Waiting times can be several years for general applicants; people at risk of homelessness or escaping family violence can get priority.

Commonwealth Rent Assistance (CRA)

• An extra payment if you get another Centrelink payment (such as JobSeeker, Age Pension or Family Tax Benefit Part A) and pay private rent above a minimum amount. You get 75 cents for every dollar of rent above that amount, up to a maximum.
• Maximum per fortnight: AUD 223.80 for a single person without children (AUD 149.20 if sharing), AUD 211.00 for a couple, and AUD 263.06 for families with 1–2 children (late 2026; indexed every 20 March and 20 September).
• No separate claim: give Centrelink your rent details with your main claim.

Buying a first home

• 5% Deposit Scheme (formerly the Home Guarantee Scheme): since 1 October 2025, first home buyers who are citizens or permanent residents can buy with a 5% deposit (single parents 2%) without paying lenders mortgage insurance; there are no income caps or place limits, but property price caps apply. Apply through a participating lender.
• First Home Super Saver Scheme: you can make voluntary super contributions and later withdraw them for a first home deposit with tax advantages.
• State help: each state sets its own First Home Owner Grant (usually for new homes only) and stamp duty concessions; check your state revenue office.

Foreign buyers

• Foreign persons, including temporary visa holders, must notify or apply through the ATO before buying residential land in Australia, whatever the price, and pay an application fee. They are generally limited to new dwellings and vacant land (with a duty to build within 4 years).
• From 1 April 2025 to 30 June 2029, foreign persons are generally banned from buying established homes, with limited exceptions.
• Foreign owners pay an annual vacancy fee if the home is not lived in or genuinely available for rent for more than 183 days a year.
• Permanent residents and citizens do not need foreign investment approval.

Common pitfalls for newcomers

• Renting is competitive in the big cities: prepare references, payslips and ID before inspections, and check your state's rules on bond (deposit) lodgement and rent increases.
• Temporary visa holders cannot get CRA because they cannot get the Centrelink payments it is attached to.
• Buying an existing home on a temporary visa is currently not allowed in most cases, even if you plan to live in it.

Official guidance: Services Australia: Rent Assistance, 5% Deposit Scheme, Foreign investment: Residential land

Education — Free Public Schools and HECS-HELP

Schools are run by the states and territories, while universities are funded mainly by the federal government, which also runs the HELP student loans. The school year follows the calendar year, with four terms from late January or early February to December, so the long summer holiday falls in December and January. Families choose between government (public), Catholic and independent (private) schools.

School

• Compulsory schooling starts at about age 6 and generally lasts at least until Year 10. In NSW and Victoria, for example, young people must then stay in school, training or full-time work until 17; rules vary by state.
• School runs from a preparatory year (called Kindergarten, Prep, Reception or Pre-primary depending on the state) through Year 12, 13 years in total.
• Government schools are free for citizens and permanent residents, apart from voluntary contributions and costs such as uniforms, excursions and devices. Children usually have a right to a place at their local (catchment) school.
• Catholic and independent schools charge fees, which vary widely between schools.
• Children of temporary visa holders: some states charge fees for government schools depending on the parent's visa; check your state education department.

Early childhood

• States and territories offer a preschool (kindergarten) program in the year before school, often free or low-cost; check your state's offer.
• Long day care and family day care are subsidised by the federal Child Care Subsidy (see the family page).

University and vocational training

• Commonwealth supported places (CSP): the government pays part of the cost and the student pays a student contribution of up to AUD 4,738 to 17,399 per full-time year, depending on the field (2026 maximum amounts).
• HECS-HELP loans for the student contribution are available to citizens, permanent humanitarian visa holders, eligible New Zealand citizens and Pacific Engagement visa holders. Other permanent residents can get a CSP but must pay the contribution upfront.
• International students pay full fees set by each university.
• TAFE and vocational training: Free TAFE courses in priority areas are jointly funded by the federal and state governments and become a permanent program from 2027 under the Free TAFE Act 2025.

HELP repayment in short

• You repay through the tax system once your income passes AUD 69,528 (2026–27), at 15 cents per dollar above that threshold, rising at higher incomes.
• The debt is indexed each 1 June by the lower of CPI and wage growth (2.8% in 2026); there is no other interest.

Student payments

• Youth Allowance for full-time students aged 18–24 (16–17 in some cases) and apprentices aged 16–24; Austudy for students and apprentices aged 25 or older; ABSTUDY for Aboriginal and Torres Strait Islander students.
• All are means-tested, and new permanent residents generally wait 4 years before they can get Youth Allowance or Austudy.

Common pitfalls for newcomers

• Renting outside the catchment of the school you want: popular public schools check your address.
• Assuming a permanent visa gives access to HECS-HELP: most permanent residents must pay upfront until they become citizens.
• Student visa holders must keep their Overseas Student Health Cover and meet the attendance and course progress conditions of their visa.

Official guidance: Study Assist (HECS-HELP), Services Australia: Youth Allowance, Free TAFE

Parental Leave — Parental Leave Pay of up to 26 Weeks

Parental support in Australia has two layers: the government's Paid Parental Leave scheme, which pays Parental Leave Pay through Services Australia, and parental leave from your employer. Parental Leave Pay is a flat rate based on the national minimum wage, not a percentage of your salary, and parents can share it.

Parental Leave Pay — the essentials

• Length: up to 130 days (26 weeks) per family for children born or adopted from 1 July 2026 (120 days for births from 1 July 2025).
• Rate: AUD 200.94 per day, or AUD 1,004.70 per 5-day week, before tax (2026–27; adjusted every 1 July). It is taxable.
• Sharing: for partnered parents, 20 days are reserved for the other parent (use them or lose them) and up to 20 days can be taken at the same time. Since July 2023 this replaces the former Dad and Partner Pay.
• Flexibility: you can take the days in blocks within 2 years of the birth or adoption.
• Superannuation: for children born or adopted from 1 July 2025, the ATO pays a Paid Parental Leave superannuation contribution at the super guarantee rate (12%) into your fund after the financial year ends.

Who can claim

• Work test: you must have worked in 10 of the 13 months before the birth or adoption, and at least 330 hours in those 10 months (about one day a week). Employees, contractors and self-employed people can qualify.
• Income test: individual adjusted taxable income of AUD 186,487 or less in the 2025–26 financial year, or a family income of AUD 386,525 or less.
• Residence: you must be an Australian resident; new permanent residents generally serve a 2-year waiting period.
• When to claim: from 3 months before the expected birth. Tell your employer at least 10 weeks before the due date, as employers often pass on the payment.

Newborn Upfront Payment and Newborn Supplement

Families eligible for Family Tax Benefit Part A who do not get Parental Leave Pay for the child can get a AUD 708 tax-free lump sum plus a Newborn Supplement of up to AUD 2,125.76 over 13 weeks for a first child (AUD 709.80 for later children).

Unpaid leave from your employer

• Under the Fair Work Act, employees with at least 12 months' continuous service can take up to 12 months of unpaid parental leave and request a further 12 months (up to 24 in total). Ask in writing at least 4 weeks before the first period ends.
• Many employers add their own paid parental leave, which can be combined with Parental Leave Pay.

Common pitfalls for newcomers

• Not meeting the 12 months' service needed for unpaid leave because you changed jobs shortly before the birth.
• Most temporary visa holders cannot get Parental Leave Pay (partner provisional visa holders are an exception, after a 2-year wait) and depend on their employer's policy.
• Claiming late: to be paid from the date of birth you must claim and give proof of birth within 14 weeks.

Official guidance: Services Australia: Parental Leave Pay, Fair Work Ombudsman: Parental leave