Australia’s $255 Cost of Living Relief: Eligibility and How It Works (January 2025)

The South Australian government is introducing significant reforms to its cost-of-living relief programs, effective January 1, 2025. These changes aim to provide broader financial support to low-income residents, especially renters in shared accommodations, by addressing outdated eligibility rules.

The initiative follows a government review highlighting how previous criteria unfairly excluded many vulnerable individuals, particularly due to the income of housemates.

Key Changes to Cost-of-Living Concessions

Eliminating the Housemate Income Rule

One of the most impactful changes involves removing the restrictive housemate income rule, which had disqualified renters from concessions based on the modest earnings of their cohabitants.

• Energy Concession: Renters could lose this benefit if a housemate earned as little as $3,000 annually.
• Cost-of-Living Concession: Renters were previously excluded from the $255.60 relief if their housemate’s income exceeded $24,000.

By eliminating these thresholds, the government ensures that renters in shared homes can access financial relief without being penalized for their housemates’ earnings.

Expanded Support for Vulnerable Groups

The reforms extend beyond renters, addressing challenges faced by age pensioners and residents of rooming houses:

• Age Pensioners: Previously at risk of losing concessions if an adult child with part-time income moved in.
• Rooming Houses: Only one resident per house could claim the cost-of-living concession, despite many being low-income earners.

These updates aim to make the system more inclusive and equitable for households in diverse living arrangements.

Increased Financial Commitment

Since the 2022 election, the South Australian government has allocated over $250 million to expand cost-of-living concessions and energy support. Highlights include:

• Doubling the Cost-of-Living Concession: Aligning benefits for renters with those provided to homeowners.
• Additional Energy Bill Support: To address rising utility costs, ensuring households can better manage financial pressures.

Human Services Minister Nat Cook emphasized that these efforts focus on making concessions “simpler, fairer, and more consistent” for low-income residents facing mounting living expenses.

Important Deadlines and Eligibility

Eligible South Australians must apply for the 2024-25 cost-of-living concession by December 31, 2024. Key criteria include:

• Who Qualifies: Pensioners, Centrelink recipients, low-income earners, and individuals in shared or transitional housing.
• Residency Requirement: Applicants must reside in South Australia and meet income thresholds.

The government encourages early applications to ensure eligible individuals can access the $255.60 concession and other household benefits without delay.

Broader Context: Tackling Cost-of-Living Challenges

South Australia’s reforms reflect a broader effort to address the cost-of-living crisis affecting low-income households across Australia. Shared accommodations, such as rooming houses and transitional housing, play a critical role in offering affordable living options, especially for individuals at risk of homelessness.

By removing outdated income rules for housemates, the government acknowledges evolving living arrangements, such as adult children staying longer in family homes and the growing reliance on shared housing to manage expenses. These changes aim to deliver targeted relief to those most in need, ensuring financial support reaches individuals regardless of their household composition.

Final Thoughts

The removal of restrictive eligibility rules and the injection of substantial funding underline the South Australian government’s commitment to alleviating financial stress for vulnerable residents. These reforms not only modernize concession policies but also provide a lifeline to thousands navigating the rising cost of living in 2025.