Services Australia has confirmed that over five million Australians will receive increased Centrelink payments from 20 September 2025. The government implemented its biannual indexation process to help recipients cope with rising living costs and inflation pressures. Age pensioners will see the largest increases, with singles receiving an additional $29.70 per fortnight and couples gaining $44.80 combined per fortnight. The indexation affects multiple payment categories including JobSeeker, Disability Support Pension, and Carer Payment.
Figure 1: Over 5 million Aussies to receive payment boost
Age Pension Recipients Receive Substantial Boost
The Age Pension received the most significant adjustment in the September 2025 indexation round. Single pensioners now receive $1,178.70 per fortnight, representing a $29.70 increase from previous rates. Couples benefit from a combined increase of $44.80 per fortnight, with each partner receiving $888.50 fortnightly. The new annual amounts reach approximately $30,646 for singles and $46,202 for couples combined.
Services Australia confirmed that approximately 2.6 million age pensioners benefit from these increases. The adjustment includes the base pension rate, pension supplement, and energy supplement components. Recipients receive the increased amounts automatically without requiring any application or action.
JobSeeker Payment Rates Rise Across Categories
JobSeeker recipients experience varying increases depending on their circumstances. Singles without children receive $793.60 per fortnight, reflecting a $12.50 increase. Single parents and those over 55 who have received payments for nine continuous months see their payments rise to $849.90 per fortnight. Partnered recipients receive $726.50 per fortnight each.
Single principal carers granted exemptions from mutual obligation requirements receive the highest JobSeeker rate at $1,027.70 per fortnight. The increases aim to help unemployed Australians manage rising costs while seeking employment opportunities.
Disability Support and Carer Payments Increase
Disability Support Pension recipients receive the same increases as Age Pension beneficiaries. Singles gain $29.70 per fortnight while couples see combined increases of $44.80 per fortnight. These adjustments support approximately 800,000 Australians living with disabilities.
Carer Payment recipients also benefit from identical increases to Age Pension rates. The government recognises the essential role carers play in supporting vulnerable Australians through these enhanced payment rates.
Deeming Rates Rise for First Time in Five Years
Services Australia simultaneously increased deeming rates from September 20, affecting approximately 771,000 Centrelink recipients. The lower deeming rate rose from 0.25% to 0.75% for financial assets under $64,200 for singles and $106,200 for couples. The upper deeming rate increased from 2.25% to 2.75% for assets exceeding these thresholds.
Deeming rates determine the assumed income from financial assets when calculating pension eligibility. The government maintained frozen rates during the pandemic to protect pensioners from economic uncertainty. Officials decided to gradually adjust rates as financial markets stabilised.
Five Million Australians Affected by Changes
The indexation affects more than five million Australians receiving various Centrelink payments. Age pensioners represent the largest group at 2.6 million recipients. JobSeeker recipients number approximately 1.3 million people. Disability Support Pension beneficiaries total around 800,000 Australians. Carer Payment recipients add another 300,000 people to the affected groups.
The indexation process operates twice yearly in March and September to maintain payment adequacy against inflation and wage growth. The Australian Bureau of Statistics evaluates adjustment levels using Consumer Price Index data, Male Total Average Weekly Earnings, and the Pensioner and Beneficiary Living Cost Index.
Income and Asset Thresholds Adjusted Upward
Age Pension income thresholds increased alongside payment rates. Singles can now earn $2,575.40 per fortnight before losing partial pension eligibility, representing a $59.40 increase. Couples can earn $3,925.80 combined per fortnight, up $89.60 from previous thresholds.
Asset limits also rose to help more Australians qualify for partial pensions. Single homeowners can hold assets worth $714,500, while non-homeowners can possess $1,014,500 in assets. Both thresholds increased by $10,000. Couples can hold $1,074,000 as homeowners or $1,274,000 as non-homeowners, reflecting $15,000 increases for both categories.
Rent Assistance Payments Increase
Rent Assistance recipients benefit from indexation adjustments to help with accommodation costs. Single recipients must pay minimum rent of $152.00 per fortnight to qualify for assistance, up from $149.60. The maximum fortnightly assistance reaches $215.40 for singles. Couples pay minimum combined rent of $246.20 per fortnight, with maximum assistance of $203.00 combined.
Also Read: Centrelink Payments September 2025 Update: What Australians Need to Know
Commonwealth Seniors Health Card Thresholds Rise
Commonwealth Seniors Health Card income limits increased from September 20. Singles earning below $101,700 annually now qualify for the card. Couples with combined incomes under $161,768 meet eligibility requirements. The card provides access to reduced-cost medicines and bulk-billing incentives for general practitioners.
Student Payment Increases Take Effect
ABSTUDY recipients aged 22 or older receive $793.60 per fortnight, matching JobSeeker Payment rates. The increase totals $12.50 per fortnight for eligible students. Youth Allowance and Austudy recipients benefit from similar adjustments based on their individual circumstances.
Automatic Implementation Across All Payments
Services Australia emphasised that recipients require no action to receive increased payments. The agency automatically applies new rates from September 20 across all affected payment categories. Recipients can verify their updated payment amounts through Centrelink online accounts or the Express Plus Centrelink mobile app.
The indexation demonstrates the government’s commitment to maintaining adequate income support during periods of economic pressure. Officials designed the system to protect vulnerable Australians from inflation impacts while encouraging workforce participation where appropriate. The increases provide essential financial relief to millions of Australians facing persistent cost-of-living challenges across housing, healthcare, and daily necessities.
