Starting October 1, 2025, Centrelink is rolling out payment increases for millions of Australians to help tackle rising living costs. From Age Pension to Disability Support Pension (DSP) and JobSeeker, these adjustments—along with a one-time $400 Cost of Living Payment—offer vital relief. If you’re on Centrelink or considering applying, here’s a clear guide to the new rates, eligibility, and what it means for you.
Why Are Centrelink Payments Increasing?
With inflation driving up costs for essentials like rent, groceries, and utilities, the Australian Government is adjusting Centrelink payments to keep them in line with living expenses. Effective October 1, 2025, these biannual indexation changes will boost payments for around 1.1–1.5 million Australians, including pensioners, job seekers, and those with disabilities.
This support aims to ease financial stress and help people stay afloat in a tough economy.
Age Pension: What’s Changing?
The Age Pension is getting one of the biggest boosts. Singles will see their fortnightly payment rise by $29.70 to $1,178.70, while couples get a combined increase of $44.80 ($22.40 each) to $1,777.00. For couples separated due to illness, each receives the single rate of $1,178.70.
These changes help seniors cover healthcare, utilities, and daily needs with greater ease.
Disability Support Pension (DSP) Increase
The DSP, vital for Australians with permanent disabilities, is also rising. Singles will receive $1,051.30 per fortnight, though the exact increase isn’t specified. This payment supports those unable to work more than 15 hours per week, ensuring they can manage essential expenses.
The boost reflects the government’s commitment to supporting vulnerable Australians.
JobSeeker Payment Updates
JobSeeker recipients without children will see their fortnightly payment increase to $793.60. This adjustment helps unemployed Australians cover rent, food, and other necessities while they search for work. Like other payments, it’s indexed to keep pace with inflation.
This increase offers a small but meaningful lift for those facing economic hardship.
$400 One-Off Cost of Living Payment
On top of regular payment increases, a one-time $400 Cost of Living Payment will be issued in October 2025. This lump sum targets low-income earners, pensioners, and eligible families struggling with skyrocketing costs. It’s a temporary boost to help with immediate expenses like rent or groceries.
Check your eligibility through Centrelink to ensure you don’t miss out.
Updated Centrelink Payment Rates (October 2025)
| Payment Type | New Fortnightly Rate (Single) | Increase (Fortnightly) |
|---|---|---|
| Age Pension (Single) | $1,178.70 | $29.70 |
| Age Pension (Couple, combined) | $1,777.00 | $44.80 |
| Disability Support Pension | $1,051.30 | Not specified |
| JobSeeker (Single, no children) | $793.60 | Not specified |
| One-Off Cost of Living | $400 (one-time) | N/A |
Other Welfare Payment Adjustments
Beyond Age Pension, DSP, and JobSeeker, other Centrelink payments are also rising:
- Youth Allowance: Increased support for young Australians studying or job hunting.
- Parenting Payment: Boosted rates for single and partnered parents.
- Rent Assistance: Extra help for those renting privately.
These adjustments ensure broader support for Australians facing financial challenges.
When and How Payments Will Arrive
The new rates take effect from September 30, 2025, with payments reflecting the increase starting October 1. They’ll follow Centrelink’s fortnightly schedule, typically paid on Tuesdays or Thursdays. The $400 one-off payment will also roll out in October, deposited directly into your bank account.
Current recipients don’t need to reapply—the increases are automatic. New applicants should visit Services Australia to start their claim.
Why These Changes Matter
For millions of Australians, these payment boosts—though modest—make a real difference. The extra $29.70 for singles or $44.80 for couples on Age Pension, alongside DSP and JobSeeker increases, helps cover rising costs. The $400 one-off payment is a timely bonus for low-income households, easing the burden of household bills.
These changes also support local economies as recipients spend on essentials, benefiting businesses and communities.
How to Prepare for the Changes
To ensure you get the updated payments:
- Check Eligibility: Confirm you meet criteria for Age Pension, DSP, JobSeeker, or the $400 payment via Services Australia.
- Update Details: Keep your MyGov and Centrelink account information current.
- Apply Early: New applicants should start the process now to align with October payments.
- Monitor Updates: Visit www.servicesaustralia.gov.au for the latest details.
Staying proactive keeps your payments smooth and uninterrupted.
FAQs About Centrelink’s 2025 Payment Increases
When do the new Centrelink payment rates start?
The new rates begin September 30, 2025, with payments reflecting the increase from October 1.
Who qualifies for the $400 Cost of Living Payment?
Low-income earners, pensioners, and eligible families struggling with household costs.
Are the payment increases permanent?
Most increases, like Age Pension and JobSeeker, are permanent, but the $400 payment is a one-time boost.
How much is the Age Pension increase?
Singles get an extra $29.70 per fortnight ($1,178.70 total), and couples gain $44.80 combined ($1,777.00).
Do I need to reapply for the increased rates?
No, current recipients get the increases automatically; new applicants must apply through Services Australia.