Starting September 20, 2025, millions of Australians dependent on Centrelink payments will see a boost to their fortnightly payment as part of the government’s annual indexation . Social security recipients, including pensioners, JobSeeker participants, and parents, are poised to receive one of the most considerable increases in recent years owing to rising cost of living pressures exacerbating the economic situation.
Who is Eligible
The payments captured by the indexation adjustment include Age Pension, Disability Support Pension, Carer Payment, Parenting Payment, and JobSeeker. There are also increases to the threshold limits for Rent Assistance and Family Tax Benefits. For a single pensioner, the maximum fortnightly rate will increase by over $30, and for couples there is a further combined increase of up to $50.
What is the Reason for the Change
The September adjustment is part of the bi-annual indexation process driven by inflation and increase in wages. However, this year, officials emphasize that the increases are distinctly driven by the sharper rise in the cost of living, which includes housing, energy, and grocery prices. The Consumer Price Index continues to sit well above the Reserve Bank’s target range which has further burdened low-income households.
Impacts on Australian Households
Even for the majority of households, any adjustment no matter how small would go a long way. Advocacy groups for the pensioners believe the additional funds will enable older Australian’s to pay for rent and medication. Community service organisations believe the raise is helpful, but the current low amount is sttll far off what is considered adequate while demand for food banks across the country has reached record levels.
Recipients of JobSeeker, particularly younger individuals, are expressing that while the increase is a step in the right direction, the payments still lag behind the required amount to rent a room in the capital cities. The announcement is likely going to spur broader calls for a wider structural review of welfare rates.
What Comes After
No action is required from Australians; the increases will be reflected in payments automatically by Centrelink from September 20.
Notification letters as well as online updates will be published in the preceding weeks. In a forward-looking manner, the next round of indexation is scheduled for March 2026; however, analysts anticipate ongoing discussions considering the relentless cost-of-living pressures.