Australians receiving Centrelink payments can expect to see a small boost in their bank accounts this weekend, as several key payments are adjusted to keep pace with inflation. From 20 September 2025, recipients of the Age Pension, Carer Payment, Disability Support Pension, and others will benefit from slightly higher fortnightly amounts.
This increase is part of the federal government’s ongoing effort to ensure that social security payments reflect the rising cost of living. While most recipients will see more money, some may experience a reduction in their payments due to an increase in deeming rates, affecting how the government calculates income from savings and investments.
Key Centrelink Payments to See Increases
Starting this Saturday, Australians who receive payments such as the Age Pension, Carer Payment, and Disability Support Pension will receive an increase of up to $44.80 per fortnight for couples, or $29.70 for single recipients. This adjustment applies to millions of Australians who rely on government support to manage their living costs.
According to the Department of Social Services, the increases aim to ensure that these benefits continue to align with inflation, helping recipients maintain their purchasing power as the cost of living rises. Notably, recipients of other key payments, such as JobSeeker, ABSTUDY for individuals aged 22 and over, and Parenting Payment, will also see increases in their fortnightly amounts.
The government has confirmed that these increases will be applied automatically, meaning recipients do not need to take any action to benefit from the changes. The adjusted payments will be reflected in the next scheduled disbursements, ensuring a seamless transition for recipients.
Changes to Deeming Rates Could Affect Some Pensioners
While many Centrelink recipients will see higher boosts, not all will benefit from the increase in the same way. A significant change that may affect some recipients is the increase in deeming rates, which will rise from 0.25% to 0.75% for the lower rate and from 2.25% to 2.75% for the higher rate.
Deeming refers to the way the government calculates how much income a recipient is presumed to earn from their financial assets, such as savings and investments. As the deeming rates increase, some pensioners—especially those with substantial savings—may see their eligibility for full pension payments reduced.
For instance, according to Professor Susan Thorp from the University of Sydney, pensioners may find that the new rates treat their financial assets as generating more income, which could lower their payments.
Although many pensioners will still receive increased amounts, those with significant assets may see a smaller rise or, in some cases, a reduction in their overall payments.This adjustment marks the end of the emergency COVID-era deeming rate freeze, and the government has stated that these changes reflect the ongoing economic recovery and a return to pre-pandemic financial conditions.
