Centrelink Payments 2025 Boost Revealed 7 Increases Coming This Weekend That Millions Didn’t Expect

Millions of Australians will notice a small but important change in their bank accounts this weekend. The Department of Social Services confirmed that Centrelink payments will be adjusted from Saturday, with more than 5 million people set to receive increases.

But before you celebrate, here’s the catch — while payments like the Age Pension, Carer Payment, and Disability Support Pension are going up, changes to deeming rates could mean some part-pensioners actually end up with less.

Let’s break down what’s really changing and how it could affect your weekly budget.

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Which Centrelink Payments Are Increasing?

From Saturday, the following payments will rise:

• Age Pension
• Carer Payment
• Disability Support Pension
• Commonwealth Rent Assistance
• JobSeeker Payment
• ABSTUDY (for people aged 22 and over)
• Parenting Payment

These payments are indexed to inflation, meaning they are adjusted regularly to reflect the cost of living. Without these increases, pensions and welfare benefits would fall behind rising prices at the supermarket, fuel pump, and power bills.

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How Much More Will You Get?

It depends on your situation. For example:

• Singles receiving the Aged Pension, Carer Payment or Disability Support Pension will get $29.70 more per fortnight.
• Couples combined will see an extra $44.80 per fortnight.

If you’re on Commonwealth Rent Assistance or JobSeeker, you’ll see smaller increases — but it all adds up when you’re trying to stretch every dollar.

Services Australia has published a detailed table so recipients can check their exact increase. The good news? You don’t need to do anything — the higher payments will be deposited automatically.

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Why Now?

Indexation is built into Australia’s welfare system. As inflation rises, so do benefits. According to Services Australia, “different payment rates and thresholds are indexed on different dates throughout the year.”

That means not every welfare benefit goes up at the same time. For instance, Youth Allowance was last adjusted in January, while pension payments were last indexed in March.

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What About Deeming Rates?

This is where things get complicated.

Deeming rates are part of the income test used to determine how much pension you’re entitled to. It’s based on the idea that your investments — such as bank accounts, superannuation, or shares — are assumed to earn a certain rate of return, whether or not they actually do.

From Saturday:

• The lower deeming rate will rise from 0.25% to 0.75%
• The upper deeming rate will rise from 2.25% to 2.75%

This means that if you’re a part-pensioner with financial assets, the government will assume you’re earning more than before — and that could reduce the amount of pension you receive.

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Why Are Deeming Rates Increasing Now?

The Labor Party extended the freeze on deeming rates during the pandemic to shield retirees from economic shocks. But that temporary measure is ending.

In a joint statement, Tanya Plibersek and Ged Kearney, ministers in the Albanese government, explained:

“Deeming rates were frozen at artificially low levels as an emergency COVID-19 measure… Social security recipients impacted by deeming saved around $1.8 billion as a result.”

Now, with inflation easing, the government is “gradually returning deeming rates to pre-pandemic settings.”

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How Could This Affect Retirees?

Professor Susan Thorp from the University of Sydney explains that higher deeming rates could lower the full pension threshold.

For example, a single homeowner pensioner with $210,000 in savings may see a bigger reduction in their pension than under the previous rules. For every $10,000 above that amount, the pension could be reduced by $7.

In short, while the pension headline figure is going up, some retirees may not feel richer if deeming rules cut into their entitlements.

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A Balancing Act

The Coalition cut deeming rates in 2020 during COVID-19 to protect pensioners. Both major parties later promised to keep rates low ahead of the 2022 election. That freeze gave older Australians breathing space as interest rates and inflation surged.

Now, with Australia’s economy stabilising, the government says it’s time to “normalize” rates. But critics argue this risks hurting those already struggling with rent, groceries, and medical costs.

September brings Age Pension changes, and for some part-pensioners, that may mean reduced payments as Centrelink updates assessed income.​

But here’s the good news: with the right plan, you can protect your care hours and keep more of your Home Care Package working for you. pic.twitter.com/9d8akD4zYh

— Sensible Care (@sensible_care) September 16, 2025

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Final Word

For more than 5 million Australians, the Centrelink changes this weekend mean more money in the bank. But for some, especially part-pensioners with investments, the deeming increase could take away what indexation gives.

It’s a reminder of the delicate balance in welfare policy: helping those in need without ignoring budget realities.

Stay informed with Daily Global Diary for updates on Centrelink, pensions, and cost-of-living changes across Australia.