In 2025, millions of Australians will benefit from a Centrelink payments increase designed to provide additional financial support amid rising living costs. This increase applies to a variety of programs, including the Age Pension, JobSeeker, parenting payments, disability support, ABSTUDY, and Carer payments. While the boost offers relief for many, some pensioners may need to adjust to higher deeming rates, which impact their budgeting and savings.
Overview of the Centrelink Payments Increase
The Centrelink payment adjustments are part of the government’s twice-yearly indexation process, which typically occurs in March and September. In 2025, over 5 million Australians will receive updated payment amounts under this indexation, helping to offset the pressures of daily living expenses.
Key groups covered by the increase include:
- Age Pensioners
- JobSeeker recipients
- Parenting Payment recipients
- ABSTUDY participants
- Disability Support Pension recipients
- Carer Payment recipients
Payment Updates for 2025
The payment increases vary depending on the type of benefit and whether the recipient is single or partnered. The new fortnightly payments are as follows:
| Benefit | New Fortnightly Payment | Increase |
|---|---|---|
| Age Pension (single) | $1178.70 | +$29.70 |
| Age Pension (partnered) | $888.50 | +$22.40 |
| Single JobSeeker | $793.60 | +$12.50 |
| Partnered JobSeeker | $726.50 | +$11.40 |
| ABSTUDY | $793.60 | +$12.50 |
| Single Parenting Payment | $1039.70 | +$16.20 |
| Partnered Parenting Payment | $734.30 | +$11.40 |
These increases aim to reduce financial stress and support recipients in covering essential living expenses.
Understanding Deeming Rates
The deeming rate determines the assumed income from financial assets such as savings, shares, and superannuation. This assumed income is used in calculating eligibility and payment amounts for pensioners.
For 2025:
- Singles with assets under $64,200 and couples under $106,200 will experience a deeming rate of 0.75%, up from 0.25%.
- Assets above these limits are deemed at 2.75%, previously 2.25%.
- Around 771,000 Australians, including pensioners, JobSeeker recipients, and disability support recipients, will be affected by these changes.
The adjustments are applied automatically by Services Australia, requiring no action from recipients.
Changes to Age Pension Limits
Alongside the payment increases, Age Pension recipients will see updated income and asset limits:
- Singles may receive part pensions up to $2575.40 per fortnight, while partnered couples may receive up to $3934.
- Asset limits for homeowners and non-homeowners have increased, allowing singles to hold $714,500 if they own a home or $972,500 if not, and couples to hold up to $1,074,000 if they own a home or $1,332,000 if not.
These changes ensure that pensioners receive additional support while maintaining eligibility.
Impact of the Centrelink Payment Increase
The 2025 payment increase provides relief to millions of Australians, helping them manage rising costs of living. While the boost benefits many, pensioners must also account for higher deeming rates, which may affect their income test calculations and savings strategy. Overall, these updates aim to strengthen financial security for vulnerable groups and ensure continued access to social welfare programs.
Conclusion
The Centrelink payments increase in 2025 provides crucial financial relief to millions of Australians. By updating payment amounts and adjusting deeming rates, the government ensures that welfare recipients can better manage living expenses and maintain stability. These changes demonstrate a continued commitment to supporting vulnerable populations and promoting economic security.
