Wren
Millions of Centrelink recipients across Australia are set to receive a significant boost in their social security payments starting next month. The increase, part of the government’s regular indexation process, will affect key payments including the Age Pension, JobSeeker, Disability Support Pension, Carer Payment, and more.
From March 20, 2026, more than 5 million Australians will see their payments rise to help keep pace with inflation, in the latest adjustment to social security support.
The changes come alongside a rise in deeming rates, which affect how financial assets are assessed for payment calculations.
Social Services Minister Tanya Plibersek confirmed the updates, saying the increases will support recipients in meeting everyday costs.
While final figures are pending official confirmation, the latest indexation data provides clear expectations for how payments and deeming rates will change.
Why Payments Are Increasing
Centrelink payments like the Age Pension and JobSeeker are indexed twice a year—in March and September—to ensure they keep pace with inflation and rising costs of living.
This mechanism adjusts payment rates and thresholds based on changes in the Consumer Price Index (CPI) and other economic indicators.
The upcoming March 20 increases form part of this routine indexation cycle, providing much‑needed relief amid ongoing economic pressures such as higher housing and grocery costs.
Who Will Benefit from the Payment Boost
The payment changes will affect a range of social security recipients. Here’s a breakdown of the main groups expected to benefit:
- Age Pension recipients (2.6 million)
- JobSeeker Payment recipients
- Disability Support Pension recipients
- Carer Payment recipients
- Commonwealth Rent Assistance recipients
- ABSTUDY (aged 22 and over)
- Parenting Payment recipients
Many of these individuals rely on Centrelink payments for essential living expenses, making even modest increases meaningful.
Expected Payment Increases
While the government will confirm final amounts when all data is finalised, early indexation indicators suggest the following changes:
| Payment Type | Current Fortnightly Rate* | Estimated Increase | New Approx. Fortnightly Rate* |
|---|---|---|---|
| Age Pension (full single) | ≈ $952.60 | + $22.20 | ≈ $974.80 |
| Disability Support Pension (full) | ≈ $952.60 | + $22.20 | ≈ $974.80 |
| Carer Payment (full) | ≈ $952.60 | + $22.20 | ≈ $974.80 |
| JobSeeker Payment | ≈ $727.90 | + (~$17) | ≈ $744.90 |
| Parenting Payment | Varies by status | + Indexation | Varies |
| ABSTUDY (22+ yrs) | Varies by schedule | + Indexation | Varies |
*Figures are based on tentative indexation forecasts and may be updated upon official release of final rates.
Social Services Minister Plibersek emphasised that these adjustments reflect the government’s commitment to ensuring social support remains relevant and responsive to economic conditions.
What Are Deeming Rates and How Do They Change?
Alongside payment boosts, deeming rates will also increase from March 20. Deeming rates are the assumed rates of return the government uses to assess income from financial assets—such as savings accounts and investments—when calculating entitlements to Centrelink payments.
The new deeming rates are:
- 1.25% for financial assets under $64,200 for singles and $106,200 for couples combined
- 3.25% for assets above these thresholds
These changes represent an increase from the previous rates of 0.75% and 2.75% respectively, though they remain below the official cash rate of 3.85% set by the Reserve Bank of Australia.
This adjustment follows a recommendation from the Australian Government Actuary and reflects updated economic conditions. Around 771,000 income‑tested recipients are expected to be impacted by the new deeming rates.
Why This Matters to Recipients
Deeming rates influence how much income is counted from financial assets. Higher rates may mean slightly higher assessed income, which could reduce eligibility for some income‑tested benefits.
However, for many recipients the overall effect will be modest, especially given the parallel increase in payment rates.
Minister Plibersek highlighted that the changes aim to maintain fairness in the social security system while continuing to support those who need it most.
What Happens Next
Recipients do not need to apply for the increases; they will be automatically applied from March 20, 2026. Payments will be adjusted in Centrelink systems ahead of schedule, and recipients will see the new rates reflected in their next fortnightly payments after that date.
Formal details and payment amounts will be published by Services Australia in the coming weeks once final indexation figures are released.
FAQs
When will the Centrelink payment increases take effect?
The new payment rates and deeming changes will take effect from March 20, 2026, and will be reflected in payments processed after that date.
Who will receive the boosted payments?
More than 5 million Australians receiving Age Pension, JobSeeker, Disability Support Pension, Carer Payment, ABSTUDY, Parenting Payment, and Commonwealth Rent Assistance will benefit.
Do recipients need to apply to receive the increase?
No. The increases will be automatically applied by Services Australia; recipients do not need to lodge any claims.