Centrelink Issues Major Update Impacting Millions Of Australians

Starting 20 September 2025, millions of Australians receiving social security payments will see a notable increase to help ease mounting cost-of-living pressures.

Thanks to the twice-yearly indexation, pensions such as the Age Pension, Disability Support Pension, and Carer Payment are rising—bringing much-needed extra support.

While the maximum up-lift might look modest on paper—up to $29.70 more per fortnight—such cumulative increases since 2022 have added nearly $5,000 in additional benefits for eligible retirees.

Alongside this adjustment come updates to deeming rates, asset and income thresholds, and other means-tested limits, reshaping how much people ultimately take home.

The Key Payment Increases

From 20 September, the following fortnightly increases apply:

Payment Type	Increase (per fortnight)
Age Pension (single)	$29.70
Age Pension (each, couple)	$22.40
Disability & Carer Payment	Up to $29.70
JobSeeker (single, 22+)	$12.50
JobSeeker (partnered)	$11.40
Parenting Payment (single)	$16.20
Parenting Payment (couple)	$11.40
ABSTUDY (22+)	$12.50

These adjustments reflect a significant step in strengthening government support for vulnerable groups across Australia.

Why These Changes Matter

• The Age Pension alone sees a considerable $772 annual increase for singles and about $1,165 for couples combined.
• This boost arrives amid broader cost-of-living relief measures, including tax cuts, cheaper medicines, energy assistance, and student debt reductions—all geared toward easing financial strain.
• Even smaller income supports like JobSeeker and Parenting Payments now include slight percentage increases, relevant for those juggling daily essentials.

Updates to Deeming Rates and Thresholds

Starting 20 September:

• Deeming rates increase from 0.25% to 0.75% for assets below thresholds, and from 2.25% to 2.75% for assets above, altering how Centrelink calculates income from investments and savings.
• Updated income and asset test thresholds enable more people to qualify for full or part pensions.

For example:

• Single homeowners’ asset limit jumps to $714,500, an increase of $10,000.
• Income thresholds rise—for singles, from approx. $2,516 to $2,575 per fortnight.

Broader Context & Government Perspective

This indexation is one of the most significant in recent years, timed alongside easing deeming rates to reduce sudden income drops for retirees. The government calls these updates fair and responsive to changing economic conditions, ensuring the system continues to support those who need it most.

Yet, due to deeming changes, not all recipients will see net increases—some may experience small reductions depending on asset holdings and income profiles.

What to Expect & Next Steps

If you receive Centrelink payments, here’s what to do:

• Check your MyGov/Services Australia account after 20 September for your updated payment amount.
• Keep an eye on your income/asset changes, as new deeming rates may affect your eligibility.
• Update your details promptly if your circumstances change to avoid overpayments or underpayments.

The Centrelink update from 20 September brings welcomed financial relief: up to $29.70 more fortnightly for many pensioners and welfare recipients.

When combined with unchanged adjustments to deeming rates and income thresholds, it forms a comprehensive system reset—balancing inflation protections with measured reforms.

Though not all will benefit equally, the net impact is to better support Australians navigating rising living costs in 2025.

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