From 1 October 2025, millions of Australians will see an increase in their Centrelink payments, as the federal government adjusts rates in line with inflation, wages, and general cost-of-living pressures. These changes are part of the regular indexation process that ensures support payments keep pace with economic realities.
The increases will affect Age Pension, Disability Support Pension, and JobSeeker recipients, alongside other allowances. In addition, a one-off $400 Cost of Living Payment will be delivered to eligible pensioners and families struggling with mounting expenses. Over 1.1 to 1.5 million Australians are expected to benefit directly from these updates.
Why Payments Are Increasing
Each year, Centrelink payments are adjusted in March and September (with the updated rates reflected in October). These changes are designed to maintain the purchasing power of welfare recipients at a time when the cost of essentials—food, rent, transport, and utilities—continues to rise.
With inflation still high throughout 2025, this round of revisions is particularly important for low-income households who rely on Centrelink as their primary or only source of income.
Updated Payment Rates from 1 October 2025
Here is the list of key Centrelink payments with new fortnightly rates.
| Payment Type | New Rate (Single, per fortnight) | Increase |
|---|---|---|
| Age Pension | $1,178.70 | +$29.70 |
| Disability Support Pension (DSP) | $1,051.30 | Not specified |
| JobSeeker Payment | $793.60 | Not specified |
| One-off Cost of Living Payment | $400 (single payment) | N/A |
Age Pension Increases
The most significant changes apply to the Age Pension. From October:
- Single pensioners will receive $1,178.70 per fortnight, which is $29.70 more.
- Couple pensioners will share a combined $1,777 per fortnight, reflecting a $44.80 increase for couples, or $22.40 each.
- For couples separated due to illness or special care, each partner will now receive the single rate of $1,178.70.
This adjustment is targeted at older Australians facing high medical, housing, and utility costs, aiming to ensure financial security in retirement.
Disability Support Pension Updates
The Disability Support Pension (DSP), paid to Australians with long-term or permanent disabilities that prevent them from working, will also rise to $1,051.30 for singles per fortnight.
Couples on DSP will receive lower individual amounts than singles, but the overall combined payments remain substantial to reflect shared living costs. The increases are designed to support both the primary DSP recipient and their dependants, helping cover essentials like rent, health treatments, or assistive technology.
JobSeeker Increase
Single JobSeeker recipients without children will move to $793.60 per fortnight from October. For those particularly strained by joblessness and rising housing costs, small adjustments like these play a vital role in keeping pace with everyday expenses.
While the increase amount for JobSeeker is not specified, the new total reflects the result of this regular indexation cycle. Younger recipients of Youth Allowance and Parenting Payment are also expected to see smaller but welcome boosts in their fortnightly support.
One-Off $400 Cost of Living Payment
Perhaps the most important news for struggling households is the one-off Cost of Living Payment of $400. This will be automatically distributed in October 2025 to eligible families, pensioners, and low-income earners receiving qualifying Centrelink payments.
The government said this benefit is being offered to deliver immediate relief for households hit hardest by inflation. Many recipients are expected to channel this support towards:
- Rent and housing costs
- Essential groceries and food
- Energy bills and utilities
- Healthcare and medicines
This direct cash injection into vulnerable households will work alongside the long-term indexed increases to ensure families are not left behind.
Broader Impact Across Australia
The October 2025 Centrelink update is expected to benefit around 1.5 million Australians in total. Welfare advocacy groups argue these changes are not just about numbers on paper, but about survival and stability for real people facing daily struggles.
The across-the-board increases highlight the government’s attempt to balance economic realities, meeting both retirees’ needs and the challenges of working-age Australians unable to find sustainable work.
How Do Centrelink Adjustments Work?
Centrelink benefit amounts are adjusted according to two main measures:
- Consumer Price Index (CPI) – which reflects the rise in the cost of goods and services.
- Wages Growth – which ensures pensioners and recipients do not fall behind relative to working Australians.
Whichever benchmark produces the higher increase is generally applied. This dual approach means payments grow in fair alignment with broader economic shifts rather than stagnating.
What Recipients Should Do Next
For most eligible Australians, no action is necessary. Centrelink will apply the changes automatically, and payments will appear in bank accounts as part of the regular fortnightly cycle from early October.
However, recipients should:
- Check their MyGov and Centrelink online accounts in early October to confirm updated amounts.
- Contact Centrelink if there are discrepancies or questions about eligibility for the one-off $400 Cost of Living Payment.
- Keep records updated with Services Australia, as outdated information may affect entitlement levels for adjusted payments.
Conclusion
From 1 October 2025, Centrelink payment increases will bring significant relief to over a million Australians. With Age Pension recipients receiving up to $1,178.70, DSP recipients securing $1,051.30, and JobSeeker hitting $793.60, the changes reflect the government’s continuing commitment to indexation and fairness.
On top of this, a one-off $400 Cost of Living Payment will provide timely support to the most financially stressed households, helping them manage the immediate pressures of inflation.