Millions of Australians are starting September 2025 with a boost to their Centrelink payments. From age pensioners to JobSeeker recipients and parents, most will see extra cash in their wallets. But there’s a catch: changes to deeming rates could reduce the overall benefit for some retirees. Here’s what you need to know.
September Indexation: More Money in Your Pocket
Twice a year, in March and September, Centrelink adjusts payments based on inflation and wage growth. This September, increases are noticeable, helping many Australians manage rising living costs.
New Fortnightly Rates (Maximum)
| Payment Type | New Rate | Increase |
|---|---|---|
| Age Pension (single) | $1,178.70 | +$29.70 |
| Age Pension (partnered, each) | $888.50 | +$22.40 |
| JobSeeker (single, 22+, no kids) | $793.60 | +$12.50 |
| JobSeeker (partnered, each) | $726.50 | +$11.40 |
| ABSTUDY (22+, living at/away) | $793.60 | +$12.50 |
| Parenting Payment (single) | $1,039.70 | +$16.20 |
| Parenting Payment (partnered, each) | $734.30 | +$11.40 |
Income Thresholds for Part Pensions
- Single pensioner: up to $2,575.40 per fortnight
- Couples (combined): up to $3,934
This means more people may now qualify for partial payments.
Deeming Rates: A Subtle Change With Big Impact
For the first time since 2020, deeming rates have increased. Deeming is how Centrelink estimates income from savings, shares, and other financial assets.
- Lower rate: 0.75% (singles) / 0.75% (couples) on balances up to $64,200 / $106,200
- Upper rate: 2.75% on balances above these thresholds
About 771,000 Australians, mainly age pensioners, will see their payments affected under the income test. Higher deemed income can reduce overall Centrelink support—even as base rates rise.
Quick Tip: You don’t need to update Centrelink
The new deeming rates are applied automatically.
Asset Thresholds for Age Pension
| Status | New Threshold | Increase |
|---|---|---|
| Single homeowner | $714,500 | +$10,000 |
| Single non-homeowner | $972,500 | +$10,000 |
| Couple homeowners (combined) | $1,074,000 | +$15,000 |
| Couple non-homeowners (combined) | $1,332,000 | +$15,000 |
Commonwealth Seniors Health Card
- Singles: taxable income under $101,105
- Couples: taxable income under $161,768
This expands access to cheaper medicines and concessions.
Who Wins and Who Loses
- Winners: Recipients without savings or modest assets. Extra cash goes straight into their pockets.
- Affected by deeming: Retirees with financial assets may see increases partly offset.
Bottom Line
The September 2025 indexation gives most Centrelink recipients a welcome financial boost. However, the rise in deeming rates serves as a reminder: your assets still influence your payments. Check your eligibility for part pensions or seniors’ concessions to maximize your benefits.
FAQs
How often does Centrelink adjust payments?
Twice a year, in March and September.
Who is affected by deeming rate changes?
About 771,000 Australians, mostly age pensioners with financial assets.
Do I need to notify Centrelink about deeming?
No, the new rates are applied automatically.
What are the new Age Pension thresholds?
Single homeowners: $714,500; couples: $1,074,000 combined (higher for non-homeowners).
Who qualifies for a Commonwealth Seniors Health Card?
Singles under $101,105 and couples under $161,768 taxable income.