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Millions of Australians will see a little more breathing room in their fortnightly Centrelink payments from 30 September 2025, as the government’s latest round of indexation increases kicks in. While the rises aren’t dramatic, they are automatic, non-taxable, and designed to help households keep pace with inflation at a time when groceries, rents, and utilities are still climbing.
Here’s a breakdown of what’s changing, who benefits, and what it means for everyday Australians.
Why Indexation Matters
Centrelink payments aren’t fixed forever. Twice a year — in March and September — the government reviews payments against three key measures:
- Consumer Price Index (CPI)
- Pensioner and Beneficiary Living Cost Index (PBLCI)
- Wage growth (Male Total Average Weekly Earnings)
Payments are then adjusted to ensure recipients don’t fall further behind as living costs rise. For people living on fixed incomes, these updates are a safeguard against inflation — think of it as a financial thermostat that adjusts automatically when the economy heats up.
New Rates from 30 September 2025
Here’s what’s confirmed for the September adjustment:
Benefit Type | Increase (per fortnight) | New Total Payment |
---|---|---|
Age Pension (Single) | +$29.70 | $1,178.70 |
Age Pension (Partnered, each) | +$22.40 | $888.50 |
JobSeeker (Single, 22+) | +$12.50 | $793.60 |
Parenting Payment (Single) | +$16.20 | Varies |
Parenting Payment (Partnered) | +$11.40 | Varies |
Youth Allowance | +$16.20 | $1,026.70 |
ABSTUDY Living Allowance | +$11.40–$13.40 | Depends on situation |
Rent Assistance (max rate) | +$2.27–$4.48 | Depends on household |
Transitional rates (for those still on older arrangements) will also rise, though at slightly smaller amounts.
Impact by Group
Age Pensioners: The biggest group of beneficiaries. Singles will now receive nearly $30 extra each fortnight, with partnered pensioners each getting $22.40 more.
JobSeekers: Singles aged 22 or over will get $793.60 per fortnight, up $12.50. While modest, it’s crucial support for people between jobs.
Youth and Students: Youth Allowance and ABSTUDY recipients get one of the largest boosts in dollar terms, helping with study costs, rent, and food.
Families: Parenting Payment recipients will see extra support, with single parents gaining $16.20 per fortnight.
Renters: The Rent Assistance increase is small but still meaningful in a tight housing market.
No Action Required
If you’re already receiving a qualifying payment, you don’t need to do anything. The higher rates will automatically apply to your payments from 30 September 2025. The funds will show up in the same way your Centrelink payments usually do — direct deposit or cheque.
Why It’s Not a “Bonus”
Unlike the one-off $700 and $750 Cost-of-Living Payments that have been announced separately for 2025, these increases aren’t a lump sum. They’re permanent adjustments built into your fortnightly payments going forward. That means the benefit compounds over time.
For example:
- A single Age Pensioner will receive about $772 more per year after this increase.
- A JobSeeker on the single rate gets $325 extra annually.
Bottom Line
The 30 September 2025 Centrelink indexation increases may not feel like windfalls, but they’re an essential protection against the erosion of purchasing power. For pensioners, students, parents, and job seekers, these changes mean a steadier footing in an unsteady economy.
FAQs
Do I need to apply for the September 2025 increase?
No. Payments adjust automatically if you’re already eligible.
Are these changes permanent?
Yes. Unlike one-off bonuses, indexation increases permanently lift the base rate.
How do I check my new rate?
Log into your myGov account or wait for your updated payment notice from Centrelink.