Wren
Australians receiving the Age Pension will soon see their payments increase as part of the government’s regular indexation of social security benefits.
From 20 March 2026, payment rates, income limits and asset thresholds will all rise, affecting more than 2.5 million pensioners across the country.
The update is part of a broader indexation change that will increase payments for more than five million Australians receiving various Centrelink benefits.
The changes aim to help pensioners and other welfare recipients keep up with the rising cost of living while allowing them to earn slightly more income or hold higher-value assets without losing eligibility for support.
New Age Pension Payment Rates
From 20 March 2026, Age Pension payments will increase for both singles and couples.
Single pensioners will receive an extra $22.20 per fortnight, bringing the maximum payment to $1,200.90 per fortnight. Couples will see their payments increase by $16.70 each, with the new maximum payment rising to $905.20 per partner per fortnight.
These amounts include the base pension rate as well as the pension supplement and energy supplement that are typically paid alongside the Age Pension.
Updated Age Pension Rates
| Pension Category | Previous Payment | New Payment (20 March 2026) | Increase |
|---|---|---|---|
| Single Pensioner | $1,178.70 | $1,200.90 | +$22.20 |
| Couple (each partner) | $888.50 | $905.20 | +$16.70 |
This increase is part of the government’s twice-yearly indexation process, which occurs every March and September to adjust welfare payments according to inflation and wage growth.
Income Test Threshold Changes
Eligibility for the Age Pension is partly determined by the income test, which measures how much money a person earns from employment, investments or other sources.
With the new indexation update, the income cut-off limits will increase, meaning pensioners can earn slightly more income before they lose access to the Age Pension.
New Income Test Limits
| Household Type | Previous Cut-Off | New Cut-Off (March 2026) |
|---|---|---|
| Single Pensioner | $2,575.40 per fortnight | $2,619.80 per fortnight |
| Couples (combined income) | $3,934.00 per fortnight | $4,000.80 per fortnight |
| Couples separated due to illness | $5,183.60 | $5,183.60 |
This adjustment allows retirees who work part-time or receive investment income to continue qualifying for the Age Pension even if their income rises slightly.
Asset Test Threshold Updates
In addition to income limits, eligibility for the Age Pension is also determined by the asset test, which considers the total value of a person’s assets. These assets may include savings, vehicles, shares, investment properties, and superannuation balances.
From 20 March 2026, the maximum asset limits will increase, allowing pensioners to hold slightly higher-value assets while still qualifying for a part pension.
Updated Asset Test Limits
| Household Type | Asset Limit (March 2026) |
|---|---|
| Single Homeowner | $722,000 |
| Couple Homeowners (combined) | $1,085,000 |
| Single Non-Homeowner | $980,000 |
| Couple Non-Homeowners (combined) | $1,343,000 |
These changes represent an increase of around $7,500 for single homeowners and $11,000 for couples, helping retirees maintain eligibility despite rising asset values.
Deeming Rate Changes
At the same time as payment increases, deeming rates used to calculate income from financial investments will also rise.
Deeming rates are used to estimate how much income a person earns from their financial assets, such as savings accounts, shares, managed funds, and superannuation.
New Deeming Rates (March 2026)
| Financial Assets | Deeming Rate |
|---|---|
| Up to $64,200 (singles) / $106,200 (couples combined) | 1.25% |
| Above these thresholds | 3.25% |
Previously, the deeming rates were 0.75% and 2.75%, meaning the government will now assume slightly higher investment earnings when calculating pension eligibility.
Other Centrelink Payments Increasing
The March indexation update will also increase several other government payments.
| Payment Type | New Maximum Rate |
|---|---|
| JobSeeker Payment (Single) | $817.50 per fortnight |
| Parenting Payment (Single) | $1,066.30 per fortnight |
| Commonwealth Rent Assistance (Single) | $219.40 per fortnight |
These increases are designed to provide additional financial support to Australians facing rising living costs.
When Will the New Payments Start?
The updated payment rates and thresholds will begin from 20 March 2026. Because most Centrelink payments are made fortnightly, recipients will generally see the higher payment amount in their first payment after this date.
Pensioners do not need to apply for the increase, as the new rates and limits will be automatically applied to eligible payments.
FAQs
When will the new Age Pension payments begin?
The increased Age Pension rates will take effect from 20 March 2026, with most recipients seeing the updated amount in their next payment cycle.
How much will single pensioners receive after the increase?
Single Age Pension recipients will receive up to $1,200.90 per fortnight, which includes the base pension and supplements.
Will the eligibility limits also increase?
Yes. Both the income test limits and asset test thresholds will increase from March 2026, allowing pensioners to earn more income and hold slightly higher-value assets while still qualifying for payments.