Great news for millions of Australians! Starting September 20, 2025, Centrelink is rolling out a significant payment increase for welfare recipients, including those on Age Pension, JobSeeker, Parenting Payment, and Commonwealth Rent Assistance.
With the cost of living climbing, this boost aims to ease the financial strain. In this guide, we’ll cover who’s eligible, how much extra you’ll get, and other changes to expect. Let’s break it down!
Why Are Centrelink Payments Increasing?
Centrelink adjusts payments twice a year—in March and September—to keep up with inflation and rising costs. These changes are tied to the Consumer Price Index (CPI) and wage growth, ensuring your payments don’t lose value as essentials like groceries, rent, and utilities get pricier.
As Social Services Minister Tanya Plibersek put it, “Fairness is at the heart of our social security system. These adjustments help Australians keep up with the economy.”
Who Qualifies for the September 2025 Boost?
The payment increase applies to a wide range of Centrelink recipients. Here’s who’s eligible:
- Age Pension recipients
- JobSeeker Payment recipients
- Parenting Payment recipients
- Youth Allowance recipients
- ABSTUDY recipients
- Disability Support Pension recipients
- Carer Payment recipients
- Commonwealth Rent Assistance beneficiaries
If you’re already receiving one of these payments, you’ll automatically get the increased amount starting September 20, 2025.
New Centrelink Payment Rates for 2025
Wondering how much extra you’ll see in your bank account? Below is a clear breakdown of the updated fortnightly rates and increases:
| Payment Type | Current Rate (Fortnightly) | New Rate (Fortnightly) | Increase |
|---|---|---|---|
| Age Pension (single) | $1,149.00 | $1,178.70 | +$29.70 |
| Age Pension (partnered, each) | $866.10 | $888.50 | +$22.40 |
| JobSeeker (single, 22+) | $781.10 | $793.60 | +$12.50 |
| JobSeeker (partnered, each) | $715.10 | $726.50 | +$11.40 |
| Parenting Payment (single) | $1,023.50 | $1,039.70 | +$16.20 |
| Parenting Payment (partnered, each) | $722.90 | $734.30 | +$11.40 |
| Youth Allowance (single, away from home) | $1,011.50 | $1,027.70 | +$16.20 |
| Rent Assistance (single, max) | $212.00 | $215.40 | +$3.40 |
| Rent Assistance (couple, max) | $199.80 | $203.00 | +$3.20 |
Note: These rates include supplements like the Energy Supplement and Pension Supplement where applicable.
Key Changes for Age Pensioners in 2025
Beyond the payment boost, there are other updates that could affect Age Pension recipients. Here’s what’s new:
1. Deeming Rates Are Going Up
For the first time in years, deeming rates are increasing:
- Lower rate: From 0.25% to 0.75%
- Higher rate: From 2.25% to 2.75%
Deeming rates determine how Centrelink calculates income from your savings or investments. A higher rate might slightly reduce your pension if you have significant assets, so check your situation via myGov.
2. Higher Income and Asset Thresholds
Good news for pensioners with extra income or assets:
- Single income cut-off: Now $2,575.40 (up $59.40)
- Couple income cut-off: Now $3,934.00 (up $89.60)
- Asset thresholds: Increased by $10,000–$15,000
These changes give pensioners more financial flexibility before their payments are affected.
3. Expanded Seniors Health Card Access
More Australians may now qualify for the Commonwealth Seniors Health Card, which offers discounts on prescriptions and medical services. The new income limits are:
- Singles: Up to $101,105
- Couples: Up to $161,768
This is a big win for retirees who don’t qualify for the Age Pension but still need healthcare support.
Why This Boost Matters
With rent, groceries, and energy bills on the rise, every extra dollar counts. As Patricia Sparrow from the Council on the Ageing (COTA) noted, “Over one in four older Australians live in poverty. An extra $29.70 a fortnight for single pensioners can make a real difference.”
This increase isn’t just about numbers—it’s about helping families and individuals cover essentials and live with less stress.
Tips to Make the Most of the Increase
Here’s how to maximize the Centrelink boost:
- Check Your Eligibility: Log into myGov to confirm your payment details and explore additional benefits like energy rebates.
- Understand Deeming Rates: If you’re an Age Pensioner with investments, talk to Centrelink about how the new rates affect you.
- Apply for the Seniors Health Card: If you’re close to the income threshold, see if you now qualify.
- Budget Wisely: Use the extra funds for essentials like rent or bills to ease financial pressure.
FAQs About the Centrelink September 2025 Boost
1. When will the new Centrelink rates start?
The increased rates begin on September 20, 2025, and will reflect in your next scheduled payment.
2. Do I need to apply for the payment increase?
No, the increase is automatic for eligible recipients. You don’t need to submit an application.
3. How much will single Age Pensioners get in 2025?
Single Age Pensioners will receive $1,178.70 per fortnight, an increase of $29.70.
4. Will the deeming rate changes reduce my pension?
If you have savings or investments, higher deeming rates may slightly lower your pension. Check your situation on myGov or contact Centrelink.
5. Can I get extra support if the increase isn’t enough?
Yes, you may qualify for additional help like Rent Assistance, energy rebates, or concession cards. Visit myGov or call Centrelink for details.
6. Who qualifies for the Commonwealth Seniors Health Card?
Singles earning up to $101,105 and couples earning up to $161,768 may qualify for discounts on prescriptions and medical services.
Final Thoughts
The Centrelink payment boost starting September 20, 2025, is a welcome relief for millions of Australians feeling the pinch of rising costs. Whether you’re on Age Pension, JobSeeker, or Rent Assistance, these increases—combined with updated deeming rates and expanded health card access—offer a bit more financial breathing room.
Log into myGov to check your eligibility and make the most of this support. Here’s to a little less stress and a lot more stability!