Starting 20 September 2025, millions of Australians will see bigger Centrelink payments hitting their accounts. This boost, part of the government’s regular indexation, helps pensioners, jobseekers, and others keep up with rising costs for groceries, rent, and utilities.
However, not all payments are increasing, and new deeming rate changes could affect some retirees. Here’s your clear, no-nonsense guide to what’s changing, who benefits, and what to watch out for.
Which Centrelink Payments Are Increasing?
The September 2025 indexation applies to several key Centrelink programs, giving a financial lift to over 5 million Aussies. Payments getting a boost include:
- Age Pension: Support for retirees aged 67 and older.
- Disability Support Pension (DSP): Aid for those unable to work due to long-term conditions.
- Carer Payment: Help for full-time carers.
- JobSeeker Payment: Support for unemployed Australians seeking work.
- Parenting Payment: Assistance for single parents raising kids.
- Rent Assistance: Extra help for renters facing high costs.
- Abstudy: Support for Indigenous students over 22 in approved courses.
Each payment’s increase depends on its type and your personal circumstances, like income or assets.
How Much More Will You Get?
The increase varies by payment. Here’s a snapshot of the boosts for key programs:
| Payment Type | Increase per Fortnight | New Max Fortnightly Rate |
|---|---|---|
| Age Pension (Single) | +$29.70 | $1,178.70 |
| Age Pension (Couple, Combined) | +$44.80 | $1,777.00 |
| Disability Support Pension | +$26.50 | $1,051.30 |
| JobSeeker (Single, No Kids) | +$20.60 | $816.90 |
Note: These are maximum rates, including supplements like pension or energy. Your actual payment may be lower if you have higher income or assets. Check exact rates on servicesaustralia.gov.au.
Why Are Payments Increasing?
Centrelink payments are indexed twice a year—March and September—to match inflation and wage growth. This ensures welfare keeps pace with rising costs for essentials like food, housing, and healthcare. The 2025 adjustment is especially important as inflation continues to squeeze budgets, offering a buffer for vulnerable Aussies to maintain their living standards.
When Do the New Rates Start?
The increased rates began on 20 September 2025, and are automatically applied to your fortnightly payments. No action is needed if you’re already receiving a qualifying payment. Deposits go straight to your nominated bank account, though dates may shift slightly for weekends or holidays.
Check your payment schedule on myGov for exact timing.
Why Aren’t All Payments Increasing?
Not every Centrelink payment gets a boost in September. Some, like Youth Allowance, were adjusted in January, while others follow different schedules. Services Australia sets specific indexation timelines for each payment type, so some benefits remain unchanged until their next review, like March 2026.
What Are Deeming Rates and How Do They Affect You?
Deeming rates are used to estimate how much income your investments (e.g., shares, super, or bank accounts) generate, which impacts your pension amount. Starting 20 September 2025, these rates are rising:
- Lower Rate: From 0.25% to 0.75%.
- Upper Rate: From 2.25% to 2.75%.
How Deeming Rates Work
The government assumes your investments earn a set rate, regardless of actual returns. If you earn more than the deemed amount, the extra isn’t counted, which can benefit pensioners. However, higher deeming rates mean Centrelink assumes you earn more, potentially reducing your pension if you have significant savings.
For example, a single homeowner with $210,000 in savings might see their pension cut by $7 per fortnight for every $10,000 above that threshold, as the new rates assume higher investment income.
Why the Change?
During COVID-19, deeming rates were lowered to help retirees, saving them about $1.8 billion. With inflation stabilizing, the government is gradually returning rates to pre-COVID levels to align with actual investment earnings, as explained by Ministers Tanya Plibersek and Ged Kearney.
How Deeming Rates Could Impact Retirees
Higher deeming rates may lower pensions for some retirees, especially those with larger savings. Professor Sarah Thorp notes that pension cuts will be steeper for those with assets well above the threshold (e.g., $210,000 for single homeowners). If you’re a part-pensioner, check how this affects you via myGov or Services Australia.
How to Prepare for the Changes
To make the most of the payment boost and navigate deeming rate changes:
- Update Details: Ensure your bank and income info are current in myGov.
- Check Payments: Log into myGov to confirm your new rate and deeming impact.
- Seek Advice: Contact Services Australia at 132 300 for personalized guidance.
Final Thoughts
The Centrelink payment increases starting 20 September 2025 are a lifeline for millions, helping cover rising costs for essentials. From Age Pension to JobSeeker, these boosts offer real relief, though deeming rate changes may reduce pensions for some retirees with savings. Stay proactive—check your myGov account and visit servicesaustralia.gov.au for the latest details.
FAQ: Centrelink Payment Increases October 2025
When do Centrelink payment increases start in 2025?
The new rates began on 20 September 2025, with payments deposited fortnightly.
Which Centrelink payments are increasing?
Age Pension, Disability Support Pension, JobSeeker, Parenting Payment, Rent Assistance, and Abstudy are among those boosted.
How much is the Age Pension increase?
Singles get an extra $29.70 per fortnight ($1,178.70 total), and couples get $44.80 combined ($1,777.00).
What are deeming rates, and why are they changing?
Deeming rates estimate investment income for pension calculations. They’re rising from 0.25% to 0.75% (lower) and 2.25% to 2.75% (upper) to align with current economic conditions.
Will the deeming rate change reduce my pension?
Possibly, if you have significant savings. For every $10,000 above $210,000 (single homeowner), your pension may drop by $7 per fortnight.