Age Pension, JobSeeker, Parenting Payment Rise — What It Means for Your Wallet

Millions of Australians woke up today to a long-awaited boost in their Centrelink payments — but there’s a sting in the tail. While pensions and benefits have gone up under the government’s regular September indexation, deeming rates are also rising for the first time in five years, cutting into the overall upside for many retirees.

It’s a moment of relief mixed with caution for the 5.5 million Australians who rely on these payments, from age pensioners to JobSeeker recipients and carers.

What’s Changed: September Indexation

Twice a year — in March and September — the government adjusts welfare payments in line with inflation and wage growth. This time, the increases are significant enough to ease some cost-of-living pressure.

Here’s the snapshot of the new fortnightly maximum rates:

Payment Type	New Rate (per fortnight)	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

(Source: Services Australia).

It’s not just higher payments—thresholds for income and assets have also shifted, meaning more people may qualify for a part pension. For example, the income cut-off for a single pensioner has risen to $2,575.40 per fortnight, while couples can now earn up to $3,934 combined before losing eligibility.

The Flip Side: Deeming Rates Climb

For the first time since 2020, deeming rates — the assumed earnings on financial assets such as savings accounts, shares, and super — have been lifted.

• The lower deeming rate is now 0.75% on financial assets up to $64,200 (singles) or $106,200 (couples).
• The upper deeming rate has climbed to 2.75% for balances above these thresholds.

That’s up from 0.25% and 2.25% respectively.

This might sound like a small tweak, but it affects about 771,000 Australians whose Centrelink payments are calculated under the income test. Roughly 460,000 of them are age pensioners.

As Services Australia explained, people don’t need to take action — the new deeming rates are automatically applied.

Why It Matters for Pensioners

Deeming is essentially the government’s way of estimating what income pensioners could be making from their financial assets. It doesn’t matter if your term deposit only returns 1% — Centrelink assumes a minimum return at the deeming rate.

The higher the deemed income, the less Centrelink pays under the income test. So even as base pensions rise, some retirees with modest savings may see their overall payment shaved back.

On the flip side, deeming can also work in retirees’ favor if they’re actually earning more than the deemed rate — since Centrelink doesn’t count the excess.

Other Age Pension Adjustments

Along with payment and deeming changes, the asset thresholds for part pensions also lifted today:

• Single homeowners: $714,500 (↑ $10,000)
• Single non-homeowners: $972,500 (↑ $10,000)
• Couple homeowners (combined): $1,074,000 (↑ $15,000)
• Couple non-homeowners (combined): $1,332,000 (↑ $15,000)

The Commonwealth Seniors Health Card eligibility also got a shake-up. From September 20, singles with taxable incomes below $101,105 and couples under $161,768 will qualify — widening access to discounted medicines and concessions.

Winners and Losers

On balance, the majority of recipients will see more money in their bank accounts from today. But for the 771,000 people affected by deeming, the increase could be partly offset. For wealthier retirees with significant assets, the boost may be negligible once deeming cuts in.

For those without savings, however, it’s a straight win. A single pensioner, for instance, pockets nearly $30 more a fortnight with no deeming penalty to worry about.

Bottom Line

The September 2025 indexation delivers some welcome breathing space for Australians under financial pressure. But the reawakening of deeming rates signals a return to tougher scrutiny on retirees’ assets — a reminder that every policy lever has trade-offs.

For now, Australians on Centrelink can expect a little extra in their pay this week. How much of it stays in their pocket depends on their financial position.

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