On 1 October 2025, Centrelink will implement revised payment amounts across several core welfare programs. These changes are part of the federal governmentâs scheduled indexation process, which ensures benefits rise in line with inflation, wage growth, and broader cost-of-living conditions. With Australian households under increasing financial strain, this set of adjustments is expected to ease pressure for more than 1.1 million people nationwide.
Programs affected include the Age Pension, Disability Support Pension (DSP), JobSeeker Payment, and related allowances. In addition, a one-off Cost of Living Payment will provide extra short-term assistance to low-income households and pensioners.
Age Pension: Largest Increase in Years
Among all the adjustments, the Age Pension will see the most significant rise in October 2025.
- Singles will now receive $1,178.70 per fortnight, reflecting an increase of $29.70.
- Couples combined will see their shared payment rise by $44.80 per fortnight.
This uplift is intended to safeguard older Australiansâ financial stability, particularly as essential living expenses such as rent, groceries, and energy continue to rise. It also provides some relief for individuals moving from a joint entitlement to a single rate following separation or loss of a partner.
Disability Support Pension Adjustments
Recipients of the Disability Support Pension will also benefit from Octoberâs indexation. The revised fortnightly rate for singles now stands at $1,051.30. While the precise dollar change in this category was not specified, the updated figure represents substantial support for people living with permanent and severe disabilities, as well as their dependent family members.
For many households, the DSP remains a critical lifeline. This increase ensures recipients keep pace with rising healthcare costs, medical equipment expenses, mobility assistance needs, and day-to-day living pressures.
JobSeeker Payment Boost
The JobSeeker Payment, which provides support for Australians actively seeking employment, will also rise. From October, the base rate for single recipients with no children will increase to $793.60 per fortnight.
Although the exact increase amount has not been disclosed, this higher rate acknowledges the worsening employment landscape in 2025, as well as increasing living costs for job seekers. The additional financial support is expected to benefit many Australians transitioning between employment, retraining, or facing sudden job loss.
One-Off $400 Cost of Living Payment
Alongside the indexed increases, the government will also deliver a one-time $400 Cost of Living Payment in October 2025. This payment targets pensioners, low-income households, and eligible families who are struggling most intensely with the ongoing affordability crisis.
The additional $400 lump sum is expected to be widely used to cover immediate expenses in areas such as:
- Rising rent and housing costs
- Weekly supermarket bills
- Utility charges including electricity and gas
- Transport and essential services
This measure complements structural welfare increases by providing immediate relief at a time when many Australians are finding it increasingly difficult to make ends meet.
Broader Economic Impact
The federal governmentâs decision to revise Centrelink rates this October reflects both an effort to provide relief and a long-term policy of indexed payment adjustments. Indexation occurs twice per year and is tied to indicators such as inflation growth and average wages, ensuring welfare recipients maintain purchasing power in periods of high cost increases.
With inflation and wage growth significantly reshaping the economic landscape in 2025, these increases are critical. By boosting payments, the federal government not only delivers targeted financial assistance but also injects additional circulation into the broader economy as recipients spend their entitlements on essential goods and services.
Who Benefits from October Changes
It is estimated that between 1.1 and 1.5 million Australians will directly benefit from these adjustments. Key groups include:
- Retirees relying primarily on the Age Pension.
- People with disabilities supported by the DSP.
- Unemployed Australians seeking work on JobSeeker.
- Low-income households and pensioners eligible for the $400 bonus payment.
For many, these revisions provide a meaningful improvement in weekly household budgets and help counterbalance the pressures of inflation-driven price increases.
Looking Ahead
The October 2025 Centrelink increases arrive at a time when financial pressures are becoming overwhelming for many Australians. While the adjustments will not entirely remove cost-of-living challenges, they represent one of the largest increases to welfare and pension payments in recent years.
As wage growth and inflation remain ongoing concerns, further rounds of indexation in 2026 will continue to be closely monitored. In the meantime, Australians receiving Centrelink payments are encouraged to review their individual entitlements through MyGov or Services Australia to confirm updated payment schedules and eligibility for the one-off $400 support.
Final Thought
The October 2025 Centrelink increases bring welcome financial relief to millions of Australians. From pensioners to job seekers, these changes provide stronger support during one of the most financially challenging periods in recent history, ensuring that those relying on welfare remain better protected against the rising cost of everyday essentials.