Starting September 20 and September 30 in 2025, an increase on Centrelink payments will be effective on Age Pensioners, JobSeeker, and Youth Allowance recipients payments. These payments will be lower than the increases aimed under the biannual government indexation. Although these increases provide little payments relief, people still appreciate these increases, considering the value of groceries, rent, and bills to a household. These increases won’t provide extra cash, but people will appreciate the lower bills in their payments.
Payment Increases from September 2025
From the end of September 2025, the following key increases will apply:
| Payment Type | Increase Per Fortnight | New Total Payment (Fortnightly) |
|---|---|---|
| Age Pension (Single) | +$29.70 | $1,178.70 |
| Age Pension (Couple, each) | +$22.40 | $888.50 |
| JobSeeker (Single, 22+) | +$12.50 | $793.60 |
| Parenting Payment (Single) | +$16.20 | Varies |
| Youth Allowance | +$16.20 | $1,026.70 |
Indexation and Its Importance
In Australia, Centrelink payments may be adjusted in January and July. Adjustments, based on inflation and the cost of living, are aimed at the recipient economic protection. Pensioners, job seekers, reassurance along with their families, are given unsecured contracted flexibility to receive payments that are adjusted based on the economic flexibility of their area. This unrestricted cash system supports recipients in their disadvantaged economic conditions.
All increases, along with their payments, on Centrelink payments in Australia are made automatically. This includes the basic payments along with subsidized utility payments, energ 7 plug payments, and energ 6 plug payments. These payments are economically aimed at the client to help them with severe economic conditions.
Impact on Different Groups
Age Pensioners form the largest group under the increases. they receive just under the increase, which is nearly $30 every fortnight as a single recipient.
For those who are unemployed or switching jobs, JobSeekers provides important financial aid. Young people eligible for Youth Allowance, including students and young job seekers, are given one of the higher increased amounts. This helps with the high cost of schooling and living expenses. Parents receiving the Parenting Payment are given an increase to help with the cost of raising children. In Australia’s housing market, even a small increase in Rent Assistance payments helps.
Deeming Rates and the Changes Made
For the first time since 2020, the changes in deeming rates are also set to include the increases in payments. Deeming rates are the rates used to determine whether someone is eligible for a payment based on the income they may have from investments and assets. This specifically affects 771,000 pensioners. These higher, and more flexible, deeming rates are a response to the stabilizing inflation and changes in the economy. In terms of adjusting to the changes, there is none for pensioners, unless it is in centre linked payments based on income and financial assets.
Importance of These Changes
Unlike the one-off cost of living payments which are temporary, all the indexation increase to the base of payment rates permanently changes welfare payments for the better.
An example would be an Age Pensioner who is on their own, who will gain a little more than $772 every year, which builds upon every year and is more than just a onetime support. This increase is necessary as it helps support the recipients so that they do not fall behind which is important with the current price raises that are seen with groceries, power, and the rent in Australia. ← This is a good text.
Frequently Asked Questions
Q: Do recipients need to submit an application to get the increase in their payments?
A: No, the increase is automatic.
Q: Is the increase in payments going to be permanent or temporary?
A: It is a permanent increase to be given in the regular fortnightly payment.
Q: How can recipients find out their current payment rates?
A: They can find out their current rates through their myGov account and their updated Centrelink payment notices.
