Single pensioners will soon receive an extra $8.70 a fortnight and couples will pocket an additional $13.20 following a twice-yearly change to indexation rates.
Unemployed Australians will take home about $2 more each week, while parenting payments will also rise by about $3 per week.
Rent assistance rates will also increase from September 20, as will a range of income and asset test limits for various payments including the age pension.
Welfare rates are raised every six months to help people handle increases in living costs.
Pensions are linked to prices and wages, while welfare allowances are tied to the consumer price index.
Meanwhile, the Greens introduced legislation to the Senate on Monday to boost Newstart and Youth Allowance payments by $75 a week.
Greens senator Rachel Siewert said the payments had languished at $38 a day since 1994.
"A wide breadth of economists, service deliverers, local councils, the community, the business sector, the UN and even John Howard are calling for an increase to Newstart so that those of us who are looking for work can keep a roof over our head," Senator Siewert said.
Australian Associated Press