More than 5 million Australians who get Centrelink payments are expected to receive a small increase in their fortnightly income from 20 March 2026, when a new round of indexation starts.
The Federal Government said the changes will apply to a range of payments and limits including the Age Pension and JobSeeker as rates are adjusted in line with inflation.
The government expects more than 2.5 million Age Pensioners will be among those who get an increase.
In a statement released on Friday, Social Services Minister Tanya Plibersek said people on the full single rate of the Age Pension, Disability Support Pension or Carer Payment were likely to get about $22.20 more each fortnight.
The government said that would take the annual pension increase since Labor came to government to $5,545.
People who receive Commonwealth Rent Assistance, JobSeeker, ABSTUDY (aged 22 and over) and Parenting Payment are also expected to get higher rates as part of the same indexation round.
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The government said the figures are based on available data and will be confirmed once final data is in. A full list of updated payment rates plus income and asset limits is due to be published in coming weeks.
Advocates for older Australians said any increase would help even if it does not fix bigger cost pressures.
COTA chief executive Patricia Sparrow said that “Many older Australians are carefully managing every dollar and additional income will help ease pressure on household budgets.”
The March changes will also include higher deeming rates. These are used to estimate income from financial assets when working out eligibility and payment amounts.
The government said the lower deeming rate will rise to 1.25% for assets under $64,200 for singles and $106,200 for couples combined. The upper deeming rate will be 3.25% for assets above those thresholds.
The new deeming rates will start on the same day as indexation, 20 March 2026.
