(Cth) Increase and Index the Remote Area Allowance

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Author: Chamika Fonseka & Lois MacGregor | Publish date: 12/3/2026

• P: The Remote Area Allowance has not been increased since July 2000 and is not subject to indexation.

• S: The Minister for Social Services should amend Section 1064-H2 of the Social Security Act 1991 (Cth) (the Act) to increase the Remote Area Allowance (refer to ‘Public Support’ section online for amount), and amend Part 3.16 of the Act to index payments.

Problem Identification: 

Last increased in July 2000, Section 1064-H2 of the Social Security Act 1991 (Cth) (the Act) sets the Remote Area Allowance (RAA) at $15.60 per fortnight for eligible partnered individuals, and at $18.20 per fortnight for all other eligible individuals. The RAA is not indexed.

According to the Australian Council of Social Service (ACOSS), this means that the RAA has remained 'the exact same amount [since] ... a quarter of a century ago.’ ACOSS and Dr Francis Markham (Research Fellow at the ANU Centre for Aboriginal Economic Policy Research) have argued that, consequently, the RAA fails to compensate recipients for the ‘highly inflated’ costs of living in remote areas, ‘falls in real value’ with inflation, and ‘worsens poverty’, particularly amongst First Nations people in remote areas.

Context: 

The RAA refers to a supplementary payment for government income support recipients (e.g. age and disability support recipients) living in eligible remote areas. The Productivity Commission (PC) has noted that areas eligible for the RAA ‘cover much of the northern half of mainland Australia’, including large areas of the NT, WA, QLD, SA, NSW, and the Torres Strait Islands.

The PC has noted that the RAA was introduced in 1984 to ‘compensate for the higher cost of living in remote regions.’ They have noted that these regions experience higher costs for food and groceries, less access to key services, and restricted geographic mobility.

The Economic Inclusion Advisory Committee (EIAC) has noted that there are approximately 90,000 recipients of the RAA. The PC has found that many of these recipients are highly concentrated; two-thirds are First Nations people, 55% live in the NT, and 49% live within areas of the highest socioeconomic disadvantage.

Arguments:

The EIAC has argued that the RAA is ‘deeply inadequate to meet the higher cost of living in remote Australia’, which exacerbates remote income poverty. According to ACOSS, ‘living costs in remote areas are almost 40% higher on average than in urban areas’, but the RAA ‘only provides an extra 1.5–2.8% in income support’. A 2024 CHOICE survey found that a basket of ‘grocery “essentials”’ could cost ‘more than double’ in remote First Nations communities compared to capital cities. Similarly, the Northern Territory Council of Social Service (NTCOSS) has highlighted that fuel in remote areas can cost ‘significantly more’ than the national average. In private communications, Dr Markham has noted that, as an equal nominal payment that does not recognise place-based cost-of-living differentials, the RAA 'entrench[es] unequal living standards'. ACOSS has warned that an inadequate RAA ‘fails to prevent poverty’ in remote areas. They have further argued that even with other payments, income remains ‘well below the poverty line and fails to cover the cost of food, medication and other essentials.’

According to the EIAC, being non-indexed has caused the RAA to lose two-thirds of its purchasing power to inflation, which means that the payment no longer ‘work[s] as originally intended’. The PC has identified that the RAA has also declined relative to underlying income support payments, which are known to be generally indexed. For instance, while they have noted that it amounted to 7.8% of the age pension for singles in 1984, Dr Markham has found that it had fallen to 1.7% by 2024. According to the PC, this means that the RAA is often considered ‘too low to make a significant difference to the incomes of households in remote areas’, contrary to its stated objective.

The Central Land Council (CLC) has argued that the RAA is ‘exacerbating the already unacceptably high rates of income poverty experienced by Aboriginal communities’. Dr Markham has identified that poverty amongst First Nations people increases with remoteness, reaching 41% in remote areas, and 74.8% in parts of the NT. He has noted that Indigenous poverty has increased since 2006 in remote areas, even as poverty has decreased in urban and regional Australia. The CLC has argued that the ‘effects of this poverty are pervasive and profound’, and noted that ‘one-third to half of the life expectancy gap between Indigenous and non-Indigenous Australians in the NT is the result of poverty.’

Advice/Solution Identification:

ACOSS, the EIAC, and the CLC have all called for the RAA to be increased and then indexed. Dr Markham has argued that an increase in the rate of the RAA could ‘provide[s] a mechanism for remote poverty alleviation that could be quickly and effectively deployed.’ Further, the EIAC has noted that indexation could prevent increases to the RAA being ‘whittled down by price rises’.

Precedent:

There is domestic precedent for increasing and indexing the RAA. In Australia, several social security payments, including Rent Assistance, Youth Allowance, and the Age Pension, are indexed to the Consumer Price Index and are adjusted at least once per year.

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Public Support: 

The following organisations have called for the RAA to be increased to $26.25 per week ($52.50 per fortnight) to compensate for the loss of value due to inflation since 2000, and ongoing indexation based on a review of remote area costs:

1. Australian Council of Social Service (ACOSS)

2. Economic Inclusion Advisory Committee (EIAC)

The following organisations/individuals have called for the RAA to be increased, and indexed in line with inflation:

3. Dr Francis Markham - Called for the RAA to increase by $120–$300 per week to equalise cost of living disparities, and thereafter, for indexation against the CPI.

4. Northern Australia Indigenous Reference Group - Called for the RAA to increase to ‘match the ongoing surge in living costs within remote communities’, and indexation to reflect increases in the CPI.

5. Economic Justice Australia - Called for an increase to the RAA, ‘and for this payment to be indexed to keep pace with inflation’.

The following organisations have called for the RAA to be increased to reflect the higher costs of living in remote areas, and then indexed:

6. Northern Territory Council of Social Service (NTCOSS) - Called for the RAA to be increased ‘in recognition of the high costs of living experienced by remote area households’, and indexed thereafter.

7. The Central Land Council (CLC) - Called for the RAA to increase to ‘appropriately account for the higher cost of living in remote areas’, and for ‘appropriate ongoing indexation arrangements’ to be instituted.

8. Aboriginal Peak Organisations Northern Territory (APO NT) - Called for indexation in line with wage movements at least twice a year.

This list reflects publicly stated positions and should not necessarily be taken as endorsement of this specific brief.

News Coverage:

• ABC News - “$5 milk and $90 rent increases: The NT's rising cost of living pushing families into housing stress”. This article outlined how fuel and groceries in remote areas can cost over twice as much as in cities, leaving residents struggling to pay bills, and contributing to housing stress. It noted that the RAA is inadequate, and has not kept pace with living costs. By: Roxanne Fitzgerald | 16 October 2025 - Read the article here.

• ABC News - “'No understanding': The extreme cost of living crisis affecting Australia’s most remote communities”. This article explored the impact of inflation and high living costs on remote communities, and discussed the Low-Cost Essentials Scheme, which has been introduced to help address the problem. By: James Vyver | 16 October 2025 - Read the article here.

• National Indigenous Times - “Researchers tackle energy poverty in remote Indigenous communities”. This article examined how a lack of money forces First National Australians into energy poverty as they cannot afford to pay for electricity, thus causing preventable exposure to heat and extreme weather, and compounding food insecurity and poor healthcare outcomes. By: Giovanni Torre | 01 April 2025 - Read the article here.

• National Indigenous Times - “Cost of living crisis hits remote communities hard, group warns”. This article discussed how remote First Nations communities have been impacted by the cost of living crisis, exacerbating socioeconomic disparities as people struggle to meet the cost of essentials, bills, and rent. By: Giovanni Torre | 06 August 2024 - Read the article here.

Where to go to learn more: 

1. (2025) Economic Inclusion Advisory Committee, 2025 Report to the Government - Chapter 4 of this report synthesised recent research and advocacy relating to socioeconomic disadvantage in remote Australia, and recommended that the Australian Government increase and index the Remote Area Allowance. Read the report here.

2. (2024) Australian Council of Social Service: Why the Remote Area Allowance Needs to Increase - This briefing note highlighted the inadequacy of the Remote Area Allowance to address the high cost of living in remote communities, outlined how it worsens poverty in remote Australia, and called for the Australian Government to increase and index it. Read the briefing note here.

3. (2023) The Central Land Council: Submission to the Senate Inquiry into the Extent and Nature of Poverty in Australia - This submission analysed the prevalence of poverty amongst First Nations people living in remote Australia, and argued that income support payments, including the Remote Area Allowance, should be increased to keep up with the rising cost of living and reduce poverty amongst First Nations people. Read the submission here.

4. (2023) Dr Francis Markham: Submission to the Senate Inquiry into the Extent and Nature of Poverty in Australia - This submission analysed trends in the prevalence of income poverty amongst First Nations people living in remote Australia. It found that poverty amongst First Nations people increases with remoteness, and has worsened in remote areas and the NT since 2006. Read the submission here.

5. (2020) Productivity Commission: Remote Area Tax Concessions and Payments - This report analysed the demographic profile of Remote Area Allowance recipients, and explored the challenges associated with life in remote Australia, including higher costs, limited service accessibility, and limited geographic mobility. It noted that these challenges necessitate a review of the payment. Read the report here.

6. Social Security Act 1991 (Cth) - Read the full Act here.

Human Perspective: 

Trigger Warning: Poverty, food insecurity.

Alice is a First Nations woman living in a small remote town in the NT, where everyday life is shaped by distance and rising living costs. Employment opportunities are limited in her town, and driving to the closest regional town for basic services like healthcare can cost over $150 in fuel alone. With only one supermarket in her town, grocery prices are also prohibitively expensive. A can of tomato soup can cost $7, and she was shocked to realise that a small 150g jar of the instant coffee she usually purchases now costs $26. Although she receives the Remote Area Allowance on top of her Jobseeker payment, with ever-increasing prices, she finds that the extra $9.10 per week does little to nothing to alleviate her struggles. Alice relies heavily on the support of her community to make it through the week. Yet, as the financial strain grows, she feels betrayed by the Government, and wonders why the Remote Area Allowance she receives has not increased when her living costs have.

To protect the anonymity of those involved, this is a fictionalised account drawn from an amalgamation of real-life stories, experiences and testimonials gathered during the research process for this brief. Any resemblance to actual individuals is purely coincidental.

Conflict of interest/acknowledgment statement: 

N/A

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Reference list: 

Aboriginal Peak Organisations Northern Territory. (2023). APO NT Submission: Senate Community Affairs References Committee Inquiry into the Extent and Nature of Poverty in Australia. https://www.aph.gov.au/DocumentStore.ashx?id=36617467-14d7-4b24-9ed1-e88d5aa86889&subId=735586

Australian Council of Social Service. (2024, July 11). Why the Remote Area Allowance Needs to Increase. https://www.acoss.org.au/wp-content/uploads/2024/07/Why-the-Remote-Area-Allowance-needs-to-increase.pdf

Australian Government. (2026, February 2). 5.2.6.30 RAA - May 1984 to present date. https://guides.dss.gov.au/social-security-guide/5/2/6/30

Blakkarly, J. (2024, October 31). Groceries cost more than twice as much in remote First Nations communities. CHOICE. https://www.choice.com.au/shopping/everyday-shopping/supermarkets/articles/remote-first-nations-grocery-stores

Central Land Council. (2023). Submission to the Senate Standing Committees on Community Affairs Inquiry into the Extent and Nature of Poverty in Australia. https://www.clc.org.au/wp-content/uploads/D23-9043-230217-CLC-submission-to-the-Inquiry-into-the-Extent-and-Nature-of-Poverty-in-Australia-FINAL-1.pdf

Central Land Council. (2024, November 20). Preliminary Submission to the Joint Select Committee on Northern Australia’s Inquiry into Energy, Food and Water Security. https://www.clc.org.au/wp-content/uploads/CLC-submission-Energy-Food-and-Water-security-Joint-Select-Committee-on-Northern-Australia-Nov-2024-FINAL.pdf

Economic Inclusion Advisory Committee. (2025). 2025 Report to Government. https://www.dss.gov.au/system/files/documents/2025-04/economic-inclusion-advisory-committee-2025-report.pdf

Economic Justice Australia. (2025, March 26). Media Release: Budget Fails to Provide Cost-of-Living Relief Where it is Needed Most. https://www.ejaustralia.org.au/media-release-budget-fails-to-provide-cost-of-living-relief-where-it-is-needed-most-eja/

Fitzgerald, R. (2025, October 16). $5 milk and $90 rent increases: The NT's rising cost of living pushing families into housing stress. ABC News. https://www.abc.net.au/news/2025-10-16/nt-cost-of-living-report-rising-rents-fuel-prices-housing-stress/105895916? 

Markham, F. (2023, October 31). Submission to the Senate Standing Committees on Community Affairs’ Inquiry into the Extent and Nature of Poverty in Australia. https://www.aph.gov.au/DocumentStore.ashx?id=9cff3504-f70f-42a7-b379-a5fda9f7b2dc&subId=750035

Markham, F. (2024, February 12). The Poor Pay More: Why the Remote Area Allowance Needs Urgent Reform. Tax and Transfer Policy Institute. https://www.austaxpolicy.com/the-poor-pay-more-why-the-remote-area-allowance-needs-urgent-reform/

Northern Australia Indigenous Reference Group. (2024, April 12). Submission to the Select Committee on Cost of Living. https://www.infrastructure.gov.au/sites/default/files/documents/irg-submission-cost-of-living.pdf

Northern Territory Council of Social Service. (2022). NTCOSS Cost of Living Report – Issue No. 31. https://ntcoss.org.au/wp-content/uploads/2022/05/20221705-CoL-Report-31-FINAL.pdf

Northern Territory Council of Social Service. (2025). Cost of Living in the Northern Territory. https://ntcoss.org.au/wp-content/uploads/2025/05/2025-May-Cost-of-Living-in-the-NT-Factsheet-FINAL-WEB.pdf

Productivity Commission. (2020). Remote Area Tax Concessions and Payments. https://assets.pc.gov.au/inquiries/completed/remote-tax/report/remote-tax.pdf

Social Security Act 1991 (Cth). https://www.legislation.gov.au/C2004A04121/latest/text

Torre, G. (2025, April 1). Researchers tackle energy poverty in remote Indigenous communities. National Indigenous Times. https://nit.com.au/01-04-2025/17157/researchers-tackle-energy-poverty-in-remote-indigenous-communities 

Vyver, J. (2025, October 16). 'No understanding': The extreme cost of living crisis affecting Australia’s most remote communities. ABC News. https://www.abc.net.au/news/2025-10-16/cost-of-living-crisis-aurukun-australia-remote-communities-/105879078