Wren
In March 2026, many Australians relying on social security payments will see significant adjustments to their Centrelink benefits and Age Pension rates.
These changes are part of the federal government’s biannual indexation to keep benefits aligned with inflation and cost‑of‑living pressures.
At the same time, deeming rates — used to assess income from financial assets — are also rising, which could affect your pension entitlements. Here’s everything Australians need to know now.
When Do the Changes Take Effect?
The major changes apply from:
- 🗓 20 March 2026 — New Centrelink payment rates and deeming rates take effect.
These adjustments are typically applied automatically by Services Australia — you do not need to reapply or submit forms.
What Centrelink Payments Are Increasing?
Several key payments are indexed or adjusted on 20 March 2026:
| Centrelink Payment | Expected Change | Who Benefits |
|---|---|---|
| Age Pension (single) | ~+$22.20 per fortnight* | ~2.5 million Age Pensioners |
| Age Pension (couple combined) | ~$33.40 per fortnight* | Couples receiving pension |
| Disability Support Pension (adult) | Similar lift | Eligible DSP recipients |
| Carer Payment | Similar lift | Full‑rate carers |
| JobSeeker Payment | Indexed up | Job seekers |
| Parenting Payment | Indexed up | Eligible parents |
| Commonwealth Rent Assistance | Indexed | Rent assistance claimants |
*Exact figures will be confirmed when the Department of Social Services publishes the official rate chart.
These increases help millions of Australians manage rising living costs, boosting household budgets as inflation persists. Over 5 million social security recipients, including the Age Pensioners, will see higher payments starting March.
What Are Deeming Rates & What’s Changing?
Deeming rates are used to estimate income from financial assets — such as savings, shares or term deposits — regardless of the actual returns you receive.
Centrelink uses deemed income to calculate your income test, which affects how much pension or benefit you receive.
New Deeming Rates (From 20 March 2026)
| Asset Range | Previous Deeming Rate | New Deeming Rate |
|---|---|---|
| Lower tier (up to $64,200 single) | 0.75 % | 1.25 % |
| Upper tier (above threshold) | 2.75 % | 3.25 % |
These new rates apply automatically and are used by Services Australia in income assessments.
What This Means:
- Higher deeming rates may increase your deemed income, which could reduce part‑pension amounts or other income‑tested benefits.
- For full‑rate Age Pensioners with little or no financial assets, deeming may have little to no practical effect.
- The simultaneous pension lift and higher deeming rates means outcomes will vary depending on personal financial circumstances — retirees with significant savings may see part of their boost offset by higher deemed income.
Why Are Deeming Rates Rising?
Deeming rates had been frozen during the COVID‑19 pandemic and were only lifted once in September 2025.
The latest adjustment in March 2026 is part of a staged plan to normalise the assumed income from financial assets so that pension assessments better reflect actual investment return environments.
How These Changes Affect Your Wallet
Positive Impacts
- Increased fortnightly payments help cover essentials like groceries, utilities and medicine.
- Indexed payments protect pensioners from inflation.
Potential Downsides
- Higher deeming rates may reduce part‑pension entitlements for those with sizable financial assets.
- Outcomes depend on your asset mix — savings, shares and term investments.
For tailored advice, consider speaking to Services Australia or a financial planner to see how these changes affect your income.
Quick Facts You Should Know
- The increase is part of standard indexation that happens twice yearly (March and September).
- New rates are applied automatically — no action required to receive them.
- Actual pension amounts vary depending on your situation (assets, income test results, living arrangements).
FAQs
Do I need to apply for the Age Pension increase?
No — Services Australia adjusts your payment automatically from 20 March 2026 if you’re eligible.
How do deeming rate changes affect my pension?
Higher deeming rates mean Centrelink assumes you earn more income from financial assets, which can lower your assessed pension amount, depending on your total assets.
Will all Centrelink payments increase in March 2026?
Most major payments like Age Pension, DSP, JobSeeker, Parenting Payment and Rent Assistance are indexed on March 20, but the size of the increase varies by payment and individual eligibility.