Millions of Australians are set to receive more money in their Centrelink payments from October 2025. The federal government has confirmed increases to several key benefits, including the Age Pension, Disability Support Pension, Carer Payment, and JobSeeker. These changes are designed to help households keep up with the rising cost of living—but some retirees could see their payments reduced due to new deeming rate rules.
Let’s break down what’s changing this month, who benefits, and how it may affect your payments.
Which Centrelink Payments Are Increasing in October 2025?
From this Saturday, several core government support payments will see a boost. These include:
- Age Pension
- Carer Payment
- Disability Support Pension (DSP)
- JobSeeker Payment
- Parenting Payment (Single)
- ABSTUDY (for students aged 22+ who are Aboriginal or Torres Strait Islander)
- Rent Assistance
Payments such as Youth Allowance and other allowances are not increasing this month, as they are reviewed at different times of the year.
How Much More Will You Receive?
The increase depends on whether you are single or part of a couple.
- Singles (Age Pension, DSP, Carer Payment): +$29.70 per fortnight
- Couples combined: +$44.80 per fortnight
These updated rates will be applied automatically—recipients don’t need to take any action.
Why Are Centrelink Payments Increasing?
The government indexes social security payments twice a year (March and September) to reflect inflation and wage growth. This ensures people relying on support can maintain their purchasing power when living costs rise.
In simple terms: when prices go up, your payments go up too.
Deeming Rate Changes: What You Need to Know
Alongside the payment increases, the government is also adjusting the deeming rates from October 2025.
- Lower deeming rate: increasing from 0.25% → 0.75%
- Upper deeming rate: increasing from 2.25% → 2.75%
What does this mean?
- Centrelink uses deeming rates to estimate how much income you earn from savings and investments.
- If you’re a pensioner with significant savings, the government now assumes you’re earning more interest.
- As a result, some retirees may see their Age Pension reduced.
For example:
- A single homeowner pensioner with over $210,000 in savings could lose around $7 in payments for every extra $10,000 saved.
Why Are Deeming Rates Rising Again?
During the COVID-19 pandemic, deeming rates were cut to historically low levels to protect retirees. This freeze saved pensioners an estimated $1.8 billion.
Now, with the economy stabilising and interest rates normalising, the government is gradually returning deeming rates to pre-COVID levels.
Key Dates: When Do These Changes Start?
- Start Date: Saturday, October 2025
- Applies Automatically: No application required—Services Australia will adjust payments for all eligible recipients.
FAQs on Centrelink October 2025 Changes
1. Do I need to apply for the payment increase?
No, the increase is automatic for eligible recipients.
2. Which payments are not increasing this month?
Youth Allowance and some smaller benefits, as they are indexed at different times.
3. How much will a single Age Pensioner get extra?
$29.70 per fortnight.
4. Will deeming rate changes reduce everyone’s pension?
No, only pensioners with higher savings or investments may see a reduction.
5. Where can I check the full updated payment rates?
Visit the Services Australia (Centrelink) website for the official payment tables.
Final Thoughts
The October 2025 Centrelink increases bring welcome relief for millions of Australians, especially pensioners, carers, and job seekers facing rising living costs. However, the deeming rate changes could mean some retirees receive less if they hold significant savings.
If you receive Centrelink payments, it’s a good idea to review your situation and check how these updates affect you. For the latest information and personalised advice, always visit Services Australia