Centrelink increases payments: JobSeeker and Age Pension go up to $1,027.75, $793.65

From September 20, 2025, new adjustments will apply to a wide range of Centrelink payments including the Age Pension, JobSeeker, Youth Allowance, Parenting Payment and Commonwealth Rent Assistance. These upgrades, though modest, reflect the government’s response to ongoing inflation pressures and rising living costs. The increases are part of Australia’s twice-yearly indexation schedule, ensuring social security payments remain aligned with the Consumer Price Index (CPI).

For Australians relying on social payments to meet essential expenses, these increases provide critical support for groceries, rent, utilities, and healthcare costs. While not transformative, the adjustments are designed to keep recipients afloat in a challenging economic environment.

Key Centrelink Payment Increases

The most widely felt changes include new fortnightly increases across major support schemes:

• Age Pension: Single recipients will see an increase of $29.70 per fortnight, bringing their new total to $1,178.70. Partnered recipients will each gain $22.40 per fortnight.
• JobSeeker: Singles aged 22 and older will receive an additional $12.50 per fortnight, raising their payment to $793.60.
• Youth Allowance: Indexed by inflation, Youth Allowance will rise by an estimated 16%, translating to around $16 additional per fortnight, with the updated single rate set at $1,026.70.
• Parenting Payment: Increased by $16.20 per fortnight, lifting the new rate to $1,039.70.
• Commonwealth Rent Assistance: A rise of $3.40 per fortnight brings the rate to $215.40.

These incremental boosts, though seemingly small, are essential for recipients living close to or below the poverty line. Advocacy groups insist that even modest relief helps vulnerable households manage basic necessities amid constant rises in essential living costs.

Adjustments to Deeming Rates and Eligibility Tests

Alongside increases in payment rates, deeming rules are also being revised. This is a significant update because deeming rates — the assumed earnings from financial investments — directly impact eligibility and payment assessments for the pension.

From September 20, 2025:

• For singles, the first $53,200 will be deemed at 0.75%, with balances above this attracting 2.75%.
• For couples, the first $88,000 will be deemed at 0.75%, with anything above set at 2.75%.

This is the first major adjustment to deeming rates in several years, with around 460,000 pensioners affected. The government argues that the change better reflects prevailing financial market conditions and ensures assessments are based on fairer assumptions.

Additionally, income and asset test limits have been expanded, widening the net for eligibility to partial Age Pensions. Australians who were previously excluded for being slightly above the threshold may now have access to some level of pension support.

Why These Increases Matter

Rising housing costs, steep energy bills, and higher food prices are straining retirees, jobseekers, and young adults alike. The September changes are part of the government’s acknowledgment that welfare rates must shift to match economic realities.

Older Australians, particularly Age Pension recipients, have historically been expected to live comfortably with payments that now barely cover the basics. For those dependent solely on welfare — around 62% of retirees — indexation ensures their income adjusts to inflationary shocks rather than stagnating.

For younger Australians, the increased JobSeeker and Youth Allowance rates reflect growing recognition that unemployment or part-time study, combined with high living costs, makes financial survival increasingly difficult without adequate assistance.

Government and Public Response

The changes have been met broadly with approval from welfare advocates, though many argue they don’t go far enough. Organisations representing pensioners and low-income earners say that while the increases provide temporary relief, the base rate of payments remains too low to guarantee a secure standard of living.

They highlight that many pensioners and welfare recipients still live on or close to the poverty line, despite regular indexation. Advocacy groups continue to lobby for more structural reforms that raise welfare payments above subsistence levels.

Government representatives, however, defend the policy by noting that the automatic indexation system is an effective way to respond promptly to ongoing economic conditions. Officials emphasise that by indexing payments every March and September, the welfare system adapts in line with inflation, ensuring recipients are not left further behind.

Wider Impact of the September 2025 Updates

While the increases are modest in dollar terms, they have meaningful outcomes for households under financial pressure. For pensioners, an increase of nearly $30 a fortnight may cover recurring costs like medicine or utility bills. For jobseekers and students, an extra $12–$16 can help alleviate weekly food and transport costs.

Combined with extensions to eligibility for pensioners under the income and assets tests, these changes signal a push to widen access and provide relief to larger sections of vulnerable Australians.

Future Outlook

As financial pressures persist, questions remain about the adequacy of the welfare system. Policymakers have indicated that further discussions are underway regarding broader pension reforms, including the long-term proposal of boosting pensions toward a $3,000 monthly target.

For now, the September 2025 updates reflect continuity in the government’s approach: ensuring bi-annual welfare adjustments track inflation and provide at least minimal relief. Given Australia’s volatile economic environment, however, there is growing recognition that incremental adjustments may not be enough to offset cumulative increases in essential living expenses.

Conclusion

The September 20, 2025 welfare updates deliver measurable increases across the Age Pension, JobSeeker, Youth Allowance, Parenting Payment, and Rent Assistance. While modest, these adjustments signal government commitment to cushioning Australians facing relentless cost-of-living pressures.

By increasing payment rates, revising deeming assessments, and widening eligibility, the changes ensure critical support reaches a greater number of people. Though debate continues about whether current rates are truly adequate, for many Australians, these increases mark an important step in keeping pace with inflation and maintaining a modest, but stable, quality of life.