Beginning September 20th, 2025, new changes will be made to the Age Pension, JobSeeker, and Youth Allowance payments. These payments will receive slight increases every two weeks, keeping in mind the CPI, in lieu of the rising costs of living in Australia.
Which Payments Will See Increases?
With the recent changes introduced, the Age Pension for singles will increase by 29.70everytwoweeksand22.40 for each partnered person. JobSeeker payments will increase by $12.50 every two weeks for singles aged 22 and older. Youth Allowance payments will also be increasing due to inflation and will increase by 16%.
Key Payment Increases at a Glance
| Payment Type | Increase (Per Fortnight) | New Rate (Single) |
|---|---|---|
| Age Pension | $29.70 | $1,178.70 |
| JobSeeker | $12.50 | $793.60 |
| Youth Allowance | ~$16.00 | $1,026.70 |
| Parenting Payment | $16.20 | $1,039.70 |
| Commonwealth Rent Assistance | $3.40 | $215.40 |
Almost all payments will increase including the Parenting Payment and the Commonwealth Rent Assistance, which will also be increasing with decreased margins. These changes are aimed to help all Australians who are struggling financially. Most recipients will now be able to afford groceries, basic utilities like gas and electricity, and necessary medical expenses.
Changes to Being Eligible and the Deeming Rates
With the payment increases, the deeming rates that pertain to the income derived from financial investments will go up for the first time in several years. These rates serve to determine the amount of income that is calculated for the purposes of assessing eligibility, and it impacts around 460,000 people who are on a pension.
Also, the Income and Asset tests for the Age Pension have had the upper limits increased as well. This means that a greater number of Australians from this demographic who, in the past, had only a little bit more than the upper limit in terms of income and assets, stand a better chance of acquiring some part pension support, thus widening the net a little bit more.
Replies and Context
The people who advocate for welfare recipients as well as older Australians have also welcomed the increases, as they state that a large number of pensioners and welfare recipients find themselves living on or near the poverty line that was historically believed to be comfortable. Slowly, the government has begun to understand that this more polite way of living is the bare minimum that so many Australian people are finding it hard to attain.
On the other hand, government representatives defend themselves by saying that the social security hasn’t been responding much to the economic changes, that’s why the system is flexible and takes changes in support of the people who are the worst of the lot.
The adjustments made to the Centrelink payments in September 2025 correspond with inflation and the need to shift the welfare payments across the country. These adjustments, while modest, are critical in keeping these households above the economic water line as cost of living continue to rise. In addition to helping budget constraints, Australians who benefit from the Age Pension, JobSeeker, Youth Allowance, and other associated payments are also able to maintain a modest standard of living as their fortnightly earnings increase.
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FAQs
Q1: When do the new payment rates take effect?
The new rates come into effect on 20 September 2025.
Q2: How often are Centrelink payments indexed?
JobSeeker and Age Pension payments are indexed every six months, as of March and September.
Q3: Will the increase affect eligibility for payments?
Yes, more people will now be able to afford payments due to their income and asset eligibility criteria being raised.
Q4: Are there any changes to deeming rates?
Yes, deeming rates used to income from investment will rise, impacting the calculation of pension payable.
