Centrelink payments cost of living rise this September
From 20 September 2025, millions of Australians will notice a change in their Centrelink payments. The government has confirmed increases across pensions, JobSeeker, Youth Allowance, Carer Payment and Rent Assistance. These adjustments come as part of the twice-yearly indexation, which is designed to stop welfare payments from falling behind when everyday costs go up.
Why the rise matters?
Groceries, rent, power bills and fuel have all climbed over the past year. For many households, even a small boost can make the difference between covering essentials and falling short. That is why the cost of living rise is especially important for people who rely on regular Centrelink support.
How much extra you will get?
Here is a simple breakdown of the increases taking effect in September 2025:
- Age Pension: Single pensioners will see around $29.70 more each fortnight, while couples get an extra $22.40 each.
- JobSeeker Payment: For singles over 22 without children, payments rise by about $12.50 a fortnight.
- Carer Payment and Disability Support Pension: These follow the same increase as the Age Pension.
- Youth Allowance and ABSTUDY: Payments rise too, though the exact amount depends on your circumstances.
- Rent Assistance: Maximum rates go up slightly, which will help renters under the pressure of high housing costs.
These Centrelink cost-of-living rise changes happen automatically, and you do not need to apply or contact Centrelink to receive them.
Deeming rates also increasing
It’s not just the payments going up. The deeming rates, which Centrelink uses to estimate earnings from savings and investments, are also being lifted. The lower rate moves from 0.25% to 0.75% and the upper rate from 2.25% to 2.75%.
This means people with significant savings may have more of their income counted, which could slightly reduce their payments. For most Australians on Centrelink, however, the boost from the new rates will outweigh the impact of higher deeming.
Who will feel the biggest impact?
The September rise is aimed at groups who are most vulnerable to rising prices. That includes pensioners, carers, job seekers and young people studying or looking for work. Renters also gain a small but useful boost.
Families with modest savings may see a small adjustment due to deeming, but overall the changes put extra money in the pockets of millions of Australians.
