Australians relying on Centrelink payments are about to see a significant rise in their fortnightly income, thanks to indexation changes that took effect on September 20, 2025. This increase aims to help recipients keep pace with the ongoing inflationary pressures felt across the country.
The adjustments will benefit millions of Australians, including pensioners, carers, job seekers, and students, offering financial relief in the face of rising living costs. The indexation process ensures that key welfare payments remain aligned with the cost of living, based on inflation rates and other economic indicators.
What Are the Key Changes to Centrelink Payments?
According to the Australian Government’s Department of Social Services, the most significant increases are to the Age Pension, Disability Support Pension (DSP), and Carer Payment. For singles, the Age Pension will rise by $29.70, bringing the fortnightly payment to $1,178.70. Couples, on the other hand, will receive an additional $22.40 each, raising their payments to $888.50 per person.
JobSeeker recipients will also see a modest rise of $12.50 for singles aged over 22, pushing their fortnightly payment to $793.60. Youth Allowance recipients will receive an additional $16.20, bringing their fortnightly total to $1,027.70. Rent assistance is similarly adjusted, with singles seeing an increase of $3.40, while couples will see a boost of $3.20.
These increases reflect the government’s commitment to supporting individuals who rely on social welfare benefits during times of economic uncertainty. While the increases are relatively small, they are crucial for helping vulnerable groups manage the rising costs of living, which have continued to outpace wage growth in recent years.
Keeping Payments Aligned with Inflation
Indexation is a process where the value of payments is adjusted periodically to ensure they remain in line with inflation and the cost of living. For Centrelink payments, this process occurs twice a year, typically in March and September. The latest adjustments are based on the Consumer Price Index (CPI), wage changes, and other indicators that reflect the true cost of living.
The upcoming increase will benefit a broad range of Centrelink recipients, from single parents to older Australians and people with disabilities. However, some critics have suggested that the indexation may still not be enough to counterbalance the real-world pressures faced by lower-income households.
