Centrelink Payment Increase September 2025: What Pensioners and Recipients Need to Know

Major Centrelink payments are set to rise starting September 20, 2025. This affects millions of Australians receiving support like the Age Pension and JobSeeker. The increase is a routine indexation adjustment.

It is designed to help payments keep pace with the rising cost of living. According to Services Australia, the change is automatic. Recipients do not need to apply for the new rates.

Payment Boost Details and Deeming Rate Changes

Single Age Pensioners will see their fortnightly payment grow by approximately $29.70. Couples eligible for the pension will receive a combined increase of around $44.80 per fortnight. This adjustment provides a small but vital financial cushion.

However, a significant change is happening to deeming rates. The lower deeming rate will jump from 0.25% to 0.75%. The upper rate will increase from 2.25% to 2.75%.

This means the government will assume recipients earn more from their financial assets. For some part-pensioners, this assumption of higher income could actually reduce their Centrelink payment amount. The shift is part of a broader return to pre-pandemic settings.

Broader Impact on Australian Households

The staged increase in deeming rates reflects the government’s assessment of current economic conditions. Officials note that inflationary pressures are gradually easing. This allows for a cautious normalization of policy.

Nevertheless, this change presents a mixed outcome for vulnerable Australians. While the direct payment increase offers relief, the higher deeming rates may offset gains for thousands. An estimated 70,000 part-pensioners could see their payments affected.

This Centrelink payment increase provides essential support amid cost-of-living pressures. Recipients should review their individual circumstances to understand the net effect of these changes on their household budget.

A quick knowledge drop for you

Which Centrelink payments are increasing in September 2025?

The increase applies to the Age Pension, Carer Payment, and Disability Support Pension. It also includes JobSeeker, Parenting Payment, and Commonwealth Rent Assistance. Most major working-age and pension payments are included.

How much will the Age Pension increase?

Single pensioners will get about $29.70 more each fortnight. Eligible couples will see a combined increase of roughly $44.80. These amounts are estimates and could vary slightly.

What are deeming rates and why do they matter?

Deeming rates are used to calculate income from financial assets for the pension income test. The rates are rising significantly in September 2025. This change may reduce payment amounts for some part-pensioners.

Will the deeming rate change affect my payment?

It may affect you if you are a part-rate pensioner with financial assets. The government will assume these assets are earning a higher return. This could lower your pension payment under the income test.

Do I need to apply for the increased payment?

No, you do not need to take any action. The payment increase is applied automatically by Services Australia. The new rates will simply appear in your account from the effective date.

Trusted Sources

Services Australia, Department of Social Services, Reuters.