From September 20, 2025, more than five million Australians receiving Centrelink support will see their payments rise following key adjustments to pension and welfare rates. The changes are part of the federal government’s response to help vulnerable Australians tackle cost-of-living pressures while also reshaping eligibility thresholds to allow more people to continue receiving benefits. Age Pensioners, job seekers, carers, and families are among those set to benefit from these increases, which will be applied automatically without the need to reapply.
Key Pension Increases
The Age Pension payment has received a notable boost this September. Under the new rates:
- Single pensioners will now receive up to $1,178.70 per fortnight, an increase of $29.70.
- Couple pensioners will receive $1,777 combined per fortnight, up by $44.80.
These increases take into account both the standard pension and essential supplements such as the pension supplement and Energy Supplement Guarantee. Services Australia has confirmed that recipients do not need to submit new applications as the adjustments will flow automatically to eligible accounts.
Who Benefits From the Cash Boost
This latest Centrelink increase, often referred to as a nationwide “cash boost,” will reach well beyond Age Pension recipients. Other groups benefiting include:
- 2.6 million age pensioners across the country
- Disability Support Pension recipients
- Carer Payment recipients
- JobSeeker recipients
- Parenting Payment recipients
- ABSTUDY students and eligible participants
For example:
- JobSeeker recipients aged 22 and older will see their base rate rise by $12.50 per fortnight.
- Single Parenting Payment recipients will receive an extra $16.20 per fortnight.
- Partnered Parenting Payment recipients will get an additional $11.40 per fortnight.
These targeted increases focus strongly on groups most exposed to financial stress, including low-income families, job seekers transitioning into the workforce, and carers managing household responsibilities.
Deeming Rate Changes and What They Mean
While the pension boost gives many Australians more financial support, some changes could reduce entitlements for those with substantial financial assets. From September 20, 2025, the government has also updated the deeming rates, which are applied as the assumed return rate on financial assets held by pension recipients, such as savings accounts or shareholdings.
- The low deeming rate rises from 0.25% to 0.75% for singles with assets up to $64,200 and for couples up to $106,200 combined.
- The high deeming rate increases from 2.25% to 2.75% for assets above those thresholds.
This means while fortnightly payments will rise for many, pensioners with higher savings or investment assets could see their overall entitlements reduced as the government recalculates the income generated from their holdings.
Updated Income and Asset Thresholds
Alongside lifting pension amounts, the government has increased the thresholds for both income and assets, meaning more Australians may now qualify for support.
- The income threshold for singles to receive a partial Age Pension has risen by $2,575 to $31,794 per year.
- Asset thresholds for homeowners have been raised by $10,000 for singles and $15,000 for couples.
These measures will ease pressure on retirees and ensure that those with slightly higher savings or part-time work income can retain at least a partial pension rather than being cut off entirely.
Summary of Changes
| Change | Detail | Impact |
|---|---|---|
| Age Pension increase | +$29.70 per fortnight (single), +$44.80 (couple) | Boost in regular payments |
| JobSeeker payment | +$12.50 per fortnight (single) | More income support |
| Parenting Payment | +$16.20 (single), +$11.40 (partnered) | Greater support for families |
| Deeming rates | 0.25% → 0.75% (low), 2.25% → 2.75% (high) | Higher deemed income, possible lower pension for asset holders |
| Income threshold | Increased $2,575 for singles | More eligibility for partial pension |
| Asset threshold | +$10,000 single, +$15,000 couple | Wider eligibility to support middle-tier retirees |
What Pensioners Need to Do
According to Services Australia, recipients do not need to take any action as the changes will be applied automatically from September 20. Pension supplements and allowances such as the Energy Supplement Guarantee will also be included in the boost.
However, individuals with higher assets or multiple income sources should carefully review their accounts to confirm how the increased deeming rates affect their personal entitlements. It is recommended that recipients check their Centrelink online accounts or contact Services Australia for personalised updates.
Supporting Australians During Cost-of-Living Pressures
The government says the changes are intended to provide security during a time when food, rent, utility, and healthcare costs continue to rise. Many recipients rely on pensions as their main source of income, and regular increases pegged to both inflation and wage growth remain essential to maintaining living standards.
Advocates for older Australians and welfare recipients welcomed the rises, but highlighted that ongoing scrutiny is needed to ensure pensioners and job seekers keep pace with real living costs. Some have called for a complete review of deeming policies, arguing that applied rates should more accurately reflect the returns Australians can achieve in low-risk bank accounts rather than hypothetical earnings.
Conclusion
The September 2025 Centrelink updates represent one of the most significant increases in recent years. With more than five million Australians affected, the new fortnightly boosts to pensions and welfare payments provide welcome relief to pensioners, carers, families, and job seekers struggling under the weight of rising living costs.
While deeming rate increases may offset gains for some with higher-value assets, changes to income and asset thresholds help to widen access to support and ensure ongoing eligibility. For most Australians on Centrelink, the changes mean more money in their pockets at a time when household budgets are stretched thin.
The message is clear: the government is attempting to deliver balance through both financial relief and accountability, aiming to protect the most vulnerable while still applying fairness in eligibility rules. For millions of families, carers, and retirees, September brings not only bigger Centrelink payments but also renewed assurance of financial stability.