Centrelink Payments Set for Small Boost This Weekend
Big news for millions of Australians — Centrelink payments are about to get a small bump starting this Saturday. According to the Department of Social Services, more than 5 million people will notice an increase in their bank accounts as part of the federal government’s regular indexation process. This adjustment is designed to keep payments in line with the rising cost of living, so benefits don’t lose value as prices go up.
Now, not every payment is going up, but some key ones are. If you’re receiving the Age Pension, Carer Payment, Disability Support Pension, Commonwealth Rent Assistance, JobSeeker, Parenting Payment, or ABSTUDY for those aged 22 and over, you’ll be among the recipients. For singles on the Age Pension, Carer Payment, or Disability Support Pension, the fortnightly increase will be around $29.70. For couples, it’ll be about $44.80 combined. These changes will be applied automatically, so there’s no need for anyone to take action — the money will simply start flowing from Saturday.
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But while payments are being adjusted upwards, there’s another shift happening that could affect some pensioners differently. Deeming rates are also being increased. In case you’re not familiar, deeming is a set of rules the government uses to estimate how much income people earn from their savings and investments, such as bank accounts, shares, or superannuation. Instead of looking at the exact amount you’re making, Centrelink assumes you’re earning a set rate, whether or not you actually are.
The lower deeming rate is rising from 0.25 per cent to 0.75 per cent, and the upper rate is going up from 2.25 per cent to 2.75 per cent. This means that some part-pensioners may see their payments reduced, because the government will assume their investments are bringing in more income than before. While this could feel like a pinch for some, it’s part of a staged return to pre-pandemic settings. The rates were frozen back in 2020 during COVID as an emergency measure to support retirees, and that freeze continued until now. The government says Australians saved about $1.8 billion as a result of that freeze, but with inflation beginning to ease, it’s decided the time has come to return rates to more normal levels.
So, in short: yes, millions will see more money in their payments from Saturday. But at the same time, increases to deeming rates mean some pensioners might not feel the full benefit. It’s another reminder of how finely balanced these payment systems are, and how small changes in policy can make a real difference to people’s day-to-day finances.
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