Centrelink Payment Changes 2025: Who Wins and Who Loses Under New Rules

Centrelink payments in Australia from 20 September 2025, based on reliable sources, plus where some of your scenario matches or mis-matches reality.

What the Government has announced

Deeming rates will increase

• From 20 September 2025, the lower deeming rate will increase from 0.25% to 0.75%.
• The upper deeming rate will increase from 2.25% to 2.75%.
• These rates apply to financial assets and are used under the income test (i.e. to assess assumed income from assets such as savings, shares, etc.).

Indexation of certain payments & thresholds

• The government will apply its regular payment indexation from 20 September to adjust rates and thresholds for things like Age Pension, Disability Support Pension, Carer Payment, Rent Assistance, etc.
• For example, the Age Pension (for singles) will increase by about $29.70 per fortnight; for couples (each), about $22.40 per fortnight.

Asset / income test thresholds will also adjust

• Changes to income test (including deeming thresholds) and asset test limits are part of the update.

What your scenario vs what’s actually true

Your statement	True / Partially True / False	Notes
From 20 Sept 2025, all beneficiaries (Age Pension, JobSeeker, Disability, Carer) will have “significant” payment increases	Partially True	There are increases via indexation, but “significant” is subjective. Some will see modest increases; others with large financial assets may see net reductions due to higher deeming.
Deeming rate for lower assets increases to 0.75%, upper to 2.75%	True	As per official DSS / Services Australia announcements.
Millions affected	True	Many pensioners / income-support recipients with financial assets or tested by income/asset rules will be affected.
All recipients will be better off	False / Depends	For some with fewer assets and under thresholds, the indexation increases may outweigh any negative effect. But those with more significant assets may have their Centrelink payment trimmed more because the higher deeming rate makes them “assume” more income. Net effect could be neutral or negative depending on personal asset holdings.

Important Impacts & What to Watch Out For

• If you hold financial assets (savings, shares, etc.), you’ll likely see a greater deemed income under the new rates. That can reduce your Centrelink payment if you are under income tested or “part-pension” / “part-benefit” arrangements.
• Those with no or low financial assets may simply see a payment increase thanks to indexation, with minimal or no adverse effects.
• Thresholds (how much asset/income you can have before payments are reduced or stopped) are also rising. So modest accumulations of savings may not hurt as much as under older limits.
• Deeming rate increase is part of a “reset” to more normal levels after the freeze during COVID-19. The government has said the freeze was an emergency measure, and now deeming is being realigned with what returns on financial assets are (or reasonably expected to be).

Corrections to Some of Your Specifics

• The thresholds for deeming only apply up to certain levels of assets: for singles and couples combined. It isn’t that all assets are deemed at the upper rate. Only the portion above the asset thresholds gets the upper rate.
• The claims about “millions will suffer large drops” are overstated in a few social media posts. Modelling suggests many will see small reductions (if any), or modest gains, depending on their situation.

FAQs