Commencing Saturday, September 20, 2025, over five million Australians who rely on vital Centrelink support will experience a necessary, albeit modest, increase in their payments through the government’s essential indexation process.
This critical adjustment to core benefits like the Age Pension, JobSeeker, Carer Payment, and Disability Support Pension is a fundamental step to help vulnerable members of the community keep pace with the continually rising cost of basic living, ensuring they can better afford necessities and maintain their dignity and well-being.
Table of Contents
Millions of Aussies Get Centrelink Cash Boost
| Key Fact | Detail | Source |
|---|---|---|
| Increase date | 20 September 2025 | Services Australia “pension rate will increase” notice |
| Rise for Age Pension (single) | + AUD $29.70 per fortnight | SuperGuide summary and ABC reporting |
| JobSeeker increase | + AUD $12.50 for singles 22+ without children | 9News reported rate change |
| Deeming rates change | Lower: 0.75 %; Upper: 2.75 % | ABC coverage of deeming change |
| Number of recipients affected | Over 5 million | ABC reporting |
What’s Changing and for Whom
Core Payments Rising
The government has confirmed that Age Pension, Carer Payment, and Disability Support Pension will all increase by AUD $29.70 per fortnight for singles. Couples in these categories will see a combined increase of AUD $44.80 per fortnight.
As an example, the full Age Pension for single recipients will rise to AUD $1,178.70 per fortnight, while for couples each partner will receive AUD $888.50.
Other Payments Also Adjusted
Several additional payments will increase, though by smaller amounts, including:
- JobSeeker (single, 22+, no children) by AUD $12.50 to AUD $793.60.
- Commonwealth Rent Assistance, ABSTUDY, Parenting Payment, and Youth Allowance will also see modest increases.
These changes reflect the government’s twice-yearly indexing approach to social security payments.
Deeming Rule Updates
In parallel, deeming rates — used to estimate the income from financial assets for income test purposes — will rise. From 20 September, the lower deeming rate will move to 0.75 %, and the upper rate to 2.75 %.
This adjustment may reduce the net benefit increase for some part-rate recipients whose asset income is relevant to their eligibility.
Why These Increases Occur
These changes are not new welfare programs. Instead, they are the result of automatic indexation mechanisms built into Australia’s social support system.
Each March and September, payment rates, income thresholds, and assets tests are adjusted using measures like the Consumer Price Index (CPI), wage growth, or the Pensioner and Beneficiary Living Cost Index, whichever yields the highest adjustment. Such a framework aims to preserve the real value of benefits over time, especially for people reliant on fixed incomes.
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Who Benefits — and Who Might Be Affected
Gains for Many Recipients
Most people on full pensions or full payments directly linked to the indexed benefits will see a clear uplift in their fortnightly income. The increases are automatic; no action is needed from recipients.
Some Offset by Deeming Changes
Recipients subject to income tests involving deemed income from assets may see smaller net increases — or in rare cases, net reductions — as the higher deeming rates offset part of their benefit rise.
Increases Vary Across Payment Types
Not all social security payments are indexed simultaneously. Some payments adjust on different schedules, meaning certain support programs may not see a rise on 20 September.
What Recipients Should Do Now
- Check your myGov / Centrelink account: The new rates should appear automatically in your next payment cycle.
- Review your income test: If you have significant financial assets, see how the rise in deeming rates affects your payments.
- Track the next indexation: The following adjustment is expected in March 2026 unless otherwise announced.
If you like, I can create a before vs after table for your state or check how much people in your area will personally gain.
