Big changes are here for millions of Australians on Centrelink! Starting September 21, 2025, over 5 million recipients will see their payments increase to keep up with rising living costs. However, higher deeming rates could slightly reduce pensions for some. Whether you’re on Age Pension, JobSeeker, or another benefit, here’s a clear guide to what’s changing, who’s affected, and how to stay on top of your payments.
Why Are Centrelink Payments Increasing?
Life in Australia is getting more expensive, with costs for groceries, rent, utilities, and healthcare climbing fast. To help, the Australian government adjusts Centrelink payments twice a year based on inflation. The latest boost, effective September 21, 2025, will support over 5 million Aussies, including pensioners, job seekers, and families.
This increase ensures recipients can better afford essentials, offering a bit of breathing room during tough economic times. But there’s a catch for some pensioners—new deeming rate changes could reduce payments for those with significant savings.
What Are the New Payment Rates?
The payment increases apply to a range of Centrelink benefits, including Age Pension, JobSeeker, ABSTUDY, Parenting Payment, Carer Payment, and Disability Support Pension. Here’s a breakdown of the new fortnightly rates:
Updated Centrelink Payment Rates (Effective September 21, 2025)
| Payment Type | Increase | New Fortnightly Rate |
|---|---|---|
| Age Pension (Single) | +$29.70 | $1,178.70 |
| Age Pension (Couple, each) | +$22.40 | $888.50 |
| JobSeeker (Single, 22+) | +$12.50 | $793.60 |
| JobSeeker (Couple, each) | +$11.40 | $726.50 |
| ABSTUDY (22+) | +$12.50 | $793.60 |
| Parenting Payment (Single) | +$16.20 | $1,039.70 |
| Parenting Payment (Couple, each) | +$11.40 | $734.30 |
No action is needed—these increases are applied automatically to your regular payments.
What Are Deeming Rates and How Do They Affect Pensions?
Deeming rates are used to estimate income from financial assets (like savings or investments) when calculating your pension. These rates have been frozen since 2020 but are now rising to reflect current market conditions. Here’s what’s changing:
- Lower rate: 0.75% for assets under $64,200 (single) or $106,200 (couple combined)
- Upper rate: 2.75% for assets above these thresholds
For pensioners with significant savings or investments, higher deeming rates may lead to a slight reduction in their Age Pension. For example, a single retiree with $100,000 in financial assets could see their pension drop by about $7 per fortnight.
Who’s Affected by Deeming Rates?
Around 771,000 Centrelink recipients with substantial financial assets may notice a small decrease in their payments. If you’re an Age Pension recipient with savings or investments above the lower threshold, it’s worth reviewing your finances to understand the impact.
How to Check Your Payments
Want to see how these changes affect you? Here’s how to stay informed:
- Log into myGov: Check your Centrelink account for updated payment details.
- Use the Express Plus Centrelink App: A quick way to monitor your payments on the go.
- Contact Services Australia: Get personalized advice if you’re unsure about your situation.
No manual updates are needed—the payment increases and deeming rate adjustments are automatic.
Why These Changes Matter
For most recipients, the payment boost is a lifeline. Single pensioners, for example, will see their fortnightly Age Pension rise to $1,178.70, helping cover essentials like groceries or rent. JobSeeker and Parenting Payment recipients also get a meaningful increase to ease financial stress.
However, the deeming rate hike could offset some of these gains for pensioners with larger savings. It’s a balancing act—while the government aims to support millions, those with more assets may see a slight dip in their pensions.
Part of a Broader Support Strategy
The September 2025 payment increases are part of the government’s ongoing efforts to tackle cost-of-living challenges. Other measures, like one-off bonuses and potential future pension adjustments, are also in the works. These steps aim to provide both immediate relief and long-term financial stability for low-income Australians.
To stay ahead, regularly check Services Australia’s website or sign up for their newsletters to catch any new announcements.
What You Should Do Now
To make the most of these changes:
- Review Your Finances: Check if deeming rates affect your pension, especially if you have savings or investments.
- Update Your Details: Ensure your bank and contact info are current with Centrelink to avoid payment delays.
- Monitor Payments: Look for the increased amounts starting September 21, 2025.
If you’re unsure about your eligibility or how deeming rates apply, reach out to Services Australia for clarity.
Why This Matters for Australians
The Centrelink payment boost is a welcome relief for millions, helping cover rising costs for essentials. While deeming rate changes may slightly reduce pensions for some, the majority will see more cash in their accounts. By staying informed and checking your financial situation, you can maximize your entitlements and navigate these changes with confidence.
FAQs About the 2025 Centrelink Payment Boost
When do the new Centrelink payment rates start?
The increased rates begin on September 21, 2025, and are applied automatically.
Who benefits from the payment increases?
Recipients of Age Pension, JobSeeker, ABSTUDY, Parenting Payment, Carer Payment, and Disability Support Pension will see higher fortnightly payments.
What are deeming rates, and how do they affect my pension?
Deeming rates estimate income from financial assets. Higher rates (0.75% and 2.75%) may reduce pensions for those with savings above $64,200 (single) or $106,200 (couple).
Do I need to apply for the payment increase?
No, the increases are automatic for eligible recipients.
How can I check my updated payments?
Log into your Centrelink account via myGov, use the Express Plus Centrelink app, or contact Services Australia.
Will everyone’s payments increase?
Most recipients will see a boost, but pensioners with significant financial assets may face a slight reduction due to higher deeming rates.