More than 5.3 million Australians will see their Centrelink payments increase from September 20, as the federal government rolls out its twice-yearly indexation update — delivering what it describes as $4 billion in cost-of-living relief across Age Pension, JobSeeker, rent assistance and a range of other social security payments.
How Much More Will Australians Receive?
The indexation increase marks the largest pension adjustment since March 2023. Singles on the Age Pension will receive an additional $36.80 per fortnight, while couples will see a combined increase of $55.60 per fortnight.
Other payments will also rise across the board:
- JobSeeker (singles without children): up $16.20 per fortnight
- Parenting Payment (single recipients): up $20.90 per fortnight
- Parenting Payment (partnered recipients): up $14.80 per fortnight
- Youth Allowance for principal carers: up $20.90 per fortnight
- ABSTUDY Living Allowance for singles aged over 22: up $16.20 per fortnight
Almost one million renters will also benefit from higher Commonwealth Rent Assistance rates as part of the same update.
Minister Vows Support for Those Doing It Tough
Social Services Minister Tanya Plibersek said the September increase would provide meaningful relief for Australians navigating ongoing cost-of-living pressures.
"From September 20, an extra $4 billion of cost-of-living relief will begin to flow to over 5.3 million Australians," she said. "Whether it's paying the rent, putting food on the table or covering everyday bills, this extra support will help Australians on income support make ends meet."
Plibersek said the government remained committed to ensuring the social security system continued to support those who needed it most, adding: "No one gets left behind."
Why Payments Are Indexed — and What It Means
Social security payment rates and thresholds are reviewed and updated twice each year to ensure they keep pace with inflation and do not erode in real value over time. Most payments are indexed in line with movements in the consumer price index (CPI), providing recipients with a degree of protection against rising prices.
For the millions of Australians relying on these payments to cover essentials, the regular adjustments are a critical mechanism in the broader financial pressures many households face day to day.
Deeming Rates Also Set to Rise
Alongside the indexation increase, the government has accepted a recommendation from the Australian Government Actuary (AGA) to adjust social security deeming rates — the rates used to calculate notional income from financial assets when assessing eligibility for government payments.
From September 20, the lower deeming rate will rise from 1.25 per cent to 1.75 per cent, applying to financial assets up to $66,800 for singles and $110,600 for couples combined. The upper rate will increase from 3.25 per cent to 3.75 per cent for assets above those thresholds.
The government described deeming as "a crucial component of the social security system," saying it provides "a simple and fair way of assessing income from financial assets so that government support is directed to those who need it most."
The updated deeming rates and the full schedule of revised payment amounts will come into effect simultaneously on September 20.
