Centrelink Payments Pittance Increase for pensioners, JobSeekers in a cost of living crisis

By Sammi
Pensioner struggling to buy food in Supermarket
Pensioner struggling to buy food in Supermarket
Photo by Gemini AI


Centrelink Payments Are Increasing in 2025: What You Need to Know

In a move to provide financial relief amid rising living costs, the Australian Government is increasing Centrelink payments through its regular indexation process. This will provide a welcome boost to millions of Australians, including pensioners, students, and job seekers.

Payment Overview

A number of key Centrelink payments are set to increase in 2025. These increases are part of the government's commitment to ensuring social security payments keep pace with the cost of living. The increases are being implemented in two stages: on March 20, 2025, and again on July 1, 2025.

The payment increases are not a one-off "cash boost" but rather an ongoing adjustment to fortnightly payment rates. This aims to provide sustained support for those who rely on these payments to cover essential expenses.

Who is Eligible?

The payment increases will benefit a broad range of recipients. This includes those on:

Eligibility for these increases is automatic for anyone currently receiving an eligible Centrelink payment.

Payment Schedule

The first round of increases was applied on March 20, 2025. A second, significant round of indexation is set to take effect from July 1, 2025. These increases will be automatically applied to eligible recipients' regular fortnightly payments.

You do not need to take any action to receive the new payment rates. The updated amounts will be deposited automatically into your linked bank account on your scheduled payment day.

Examples of Payment Increases

The indexation on July 1, 2025, will see a number of payments rise, with key examples including:

  • Age Pension: Single pensioners will see an increase in their maximum fortnightly rate.

  • JobSeeker Payment: Recipients will also receive a modest increase to their fortnightly payments.

  • Youth Allowance and Austudy: Students and job seekers on these payments will also benefit from an increase to their fortnightly rates.

  • Family Tax Benefit: Families will see an increase in the maximum fortnightly rate for each child.

These increases are part of a broader indexation that also affects income and asset thresholds, meaning more people may now be eligible for a full or part pension.

How to Ensure You Receive Your Correct Payment

To ensure your payments are not delayed and that you receive the correct amount, it is essential to keep your details up to date with Services Australia. You should:

  • Update your bank details: Make sure Services Australia has your correct and current bank account information.

  • Keep your address current: An up-to-date address helps ensure you receive all correspondence.

  • Check your details on myGov: You can easily review and update your personal information through your myGov account linked to Centrelink.

For any questions or to check your specific payment rates, you can log in to your myGov account or contact Services Australia directly.

Based on the most recent information, there are specific and significant increases to a number of Centrelink payments taking effect on September 20, 2025.1 These increases are part of the regular indexation process to help social security payments keep pace with the cost of living.2

Here are the specific payment increases:

Pensions (Age Pension, Disability Support Pension, Carer Payment)3

  • Single people: The maximum fortnightly rate for a full pension will increase by $29.70.4 This brings the fortnightly payment for a single person to a new total of $1,178.70.5

  • Couples: The combined fortnightly rate for a full pension will increase by $44.80 ($22.40 per person).6 This brings the combined fortnightly payment to $1,777.00.

Other Allowances and Payments

  • JobSeeker Payment, ABSTUDY (22 and over), and Parenting Payment: These payments will also see an increase, although the specific dollar amounts are not detailed in all sources. The increases are being applied through indexation to help recipients with everyday costs.7

  • Youth Allowance and Austudy: Specific increases for these payments occurred earlier in the year. For example, a single person over 18 living at home on Youth Allowance saw their payment increase by $17.30 per fortnight to $477.10. A single student on Austudy with dependent children received an increase of $30.60 to $845.80 per fortnight.

  • Family Tax Benefit (Part A and B): These payments have also increased. The maximum fortnightly rate for Family Tax Benefit Part A for children under 13 has increased to $227.36, and for children 13 or older, it has increased to $295.82.8 The maximum rate of Family Tax Benefit Part B has increased to $193.34.9

Additional Changes

  • Commonwealth Rent Assistance: The maximum rate has increased by nearly 50% since the current government took office, providing a substantial boost to renters on low incomes.

  • Deeming Rates: From September 20, 2025, deeming rates will also be adjusted.10 The lower deeming rate will increase from 0.25% to 0.75%, and the upper rate will increase from 2.25% to 2.75%.11 These changes affect how Services Australia calculates income from financial assets for both pensioners and other payment recipients.

  • To be eligible for the JobSeeker Payment, you must meet several key criteria related to your personal circumstances, residency, and financial situation.1

    Key Eligibility Requirements

    • Age: You must be between 22 and Age Pension age (currently 67).2 If you are 21 or younger, you may be eligible for Youth Allowance instead.3

    • Employment Status: You must be unemployed or working part-time (less than 30 hours per week). The payment is also available if you are temporarily unable to work due to a short-term illness or injury.4

    • Residency: You must be living in Australia and be an Australian resident or the holder of a specific visa.5 A newly arrived resident's waiting period of up to four years may apply.6

    • Financial Situation: You must meet both an income and an assets test.7 These tests assess your personal and partner's financial situation to determine if you are eligible for the payment and at what rate.8

    Additional Requirements and Considerations

    • Mutual Obligation Requirements: Once your claim is approved, you will have to meet certain obligations, which may include:

      • Actively looking for work and applying for jobs.

      • Attending appointments with an employment services provider.

      • Participating in training, courses, or other agreed-upon activities.9

      • Reporting your income and employment status every two weeks.10

    • Waiting Periods: There may be one or more waiting periods before you receive your first payment, including:

      • A Liquid Assets Waiting Period based on the amount of money you have in savings and other liquid assets.11

      • A Newly Arrived Resident's Waiting Period if you have recently become a resident of Australia.12

    • Income and Assets Tests: Your payment rate is determined by the test that results in the lower entitlement. This includes your income and assets, and for partnered individuals, those of your partner as well.13 There are specific thresholds for both tests, and if you or your partner's income or assets exceed these limits, your payment may be reduced or canceled.14 Your family home and some other assets are exempt from the assets test.

Location: Parliament Dr, Canberra ACT 2600, Australia

Comments

  1. Anonymous22 August 2025 at 21:27

    As per usual Mr BS can't put up the Full Article.
    Only what he wants to supply.
    No amount $ for Jobseekers only worrying about Pensioners again when my neighbour Drinks his Pension awyyevery week & causes Trouble.

    ReplyDelete

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