The Australian Government has confirmed a one-time $400 Centrelink cost-of-living payment for eligible pensioners, set to be delivered during October 2025. This targeted relief measure aims to help older Australians cope with soaring living expenses driven by energy prices, rent hikes, and essential grocery inflation.

What the $400 Centrelink Payment Is

The $400 payment is a one-off, tax-free support supplement designed to give immediate financial relief to people receiving the Age Pension and other senior-related benefits. Unlike regular indexation updates, this payment is a standalone bonus approved under federal cost-of-living measures announced mid-year.

It will be paid automatically into recipients’ nominated bank accounts through Centrelink without the need to apply. The payment will appear as a separate entry labeled “Cost of Living Support” or “Centrelink Supplement” depending on the recipient’s eligibility stream.

Who Is Eligible for the $400 Payment

To qualify, recipients must be receiving one of the following eligible payments as of the qualification date in early October 2025:

• Age Pension
• Disability Support Pension (DSP) for those of Age Pension age
• Carer Payment
• Veterans’ Service Pension or similar Department of Veterans’ Affairs benefits
• Recipients of both Age Pension and Commonwealth Seniors Health Card

Couples who both receive an eligible pension will each qualify for the $400 amount, equating to $800 per couple. The payment will not count as income for tax or social security purposes, meaning it will not reduce any other Centrelink entitlements.

Why the $400 Payment Was Introduced

The government introduced the one-time payment as part of its 2025–26 Federal Budget cost-of-living package, which focuses on easing financial pressure for pensioners, job seekers, and low-income households.

Treasury data shows household energy and rental costs remain the most significant expense growth areas for retirees on fixed incomes. The $400 payment is intended to bridge that affordability gap before the next major indexation adjustment later in March 2026.

Officials emphasized that while the payment is modest, it gives immediate support to pensioners struggling to cover non-discretionary costs such as electricity, gas, and healthcare.

Payment Date and Delivery

Eligible recipients will begin receiving the one-off $400 Centrelink payment from October 21, 2025, aligning with the new fortnightly payment cycle following the latest indexation increases.

Payments will be distributed over several days due to the high volume of recipients, with most seeing the deposit by October 25, 2025. Centrelink clients can check the status via:

• myGov account > Payments and Services > Payment and Claims
• Express Plus Centrelink app, where a payment summary will show under “Upcoming Payments.”

No action is required for eligible recipients. If the payment does not appear by the end of October, Centrelink advises checking eligibility criteria or ensuring personal details and bank information are up to date.

How It Differs from Regular Increases

Regular welfare payments such as the Age Pension and Disability Support Pension are automatically indexed twice yearly, in March and September. Those adjustments change base payment rates permanently.

In contrast, the $400 payment is a single-time supplement, meaning it will not repeat automatically next year. It functions similarly to past government relief programs, such as the 2023 electricity offset payment or COVID-19-era lump sums, meant as one-off relief from current inflationary pressures.

Impact on Pensioner Households

The lump-sum payment equates to almost half a fortnight’s base pension for single recipients. For couples on a combined full rate, the additional $800 provides temporary room in tight household budgets, particularly for upcoming summer energy bills.

With inflation moderating but utilities and housing still elevated, the payment strengthens the government’s approach of providing direct, short-term financial cushion without altering underlying pension structures. Economists broadly view the supplement as a stopgap measure that supports stability until 2026’s broader welfare rate review.

How to Stay Updated and Avoid Scams

Whenever lump-sum Centrelink payments are announced, scammers often exploit misinformation to target pensioners. Services Australia has issued reminders that:

• The $400 payment will be automatic—no registration is required.
• Centrelink will never ask for bank or card details by email or text.
• Official updates are posted only on servicesaustralia.gov.au and myGov notifications, not through social media messages.

To verify any new announcements, recipients should rely only on these official government sites or contact the Centrelink Older Australians line directly.

Other Current Financial Relief Measures

Alongside the $400 bonus, pensioners may also benefit from additional government assistance active in late 2025:

• Energy Bill Relief Rebate: Continuing into the 2025–26 financial year for concession card holders.
• Increase to Commonwealth Rent Assistance: Providing up to $27.60 extra per fortnight for renters.
• Reduced PBS medicine co-payment: Capped at $7.70 per script for seniors.
• Expanded Working Credit rules: Allowing limited work income without reducing pension eligibility.

These policies combine with the October cost-of-living payment to reinforce household stability amid continued economic uncertainty.

Bottom Line

The $400 Centrelink payment available from October 21, 2025, is a confirmed government-issued one-time cost-of-living supplement. It applies automatically to Age Pensioners, carers, and veterans and aims to reduce short-term financial strain for seniors.

While it’s not part of routine indexation, this payment demonstrates the government’s ongoing response to rising costs faced by older Australians—and ensures that those who built the nation get meaningful relief at a time when household expenses remain historically high.