More than four million Australians receiving Centrelink payments are set to see their fortnightly income increase from 20 March.
If you’re on JobSeeker, collecting ABSTUDY, receiving Parenting Payment or getting Commonwealth Rent Assistance, your bank balance is about to benefit from the federal government’s routine twice-yearly indexation. The adjustment is designed to keep social security payments roughly in line with inflation, which is a polite way of saying everything costs more and the numbers need to catch up.
Those on the full single rate of Disability Support Pension or Carer Payment can expect an estimated extra $22.20 per fortnight. Around 2.5 million age pensioners are also covered. The exact figures won’t be locked in until final data is available in coming weeks, but the government estimates annual payments are now roughly $5,545 higher than when they took office.
Key changes from 20 March
- JobSeeker payments increasing
- ABSTUDY (22 and over) increasing
- Parenting Payment increasing
- Commonwealth Rent Assistance increasing
- Full single rate of Age Pension, Disability Support Pension and Carer Payment expected to rise by $22.20 per fortnight
- Lower deeming rate rising to 1.25% for financial assets under $64,200 (singles) and $106,200 (couples)
- Upper deeming rate rising to 3.25% for assets above those thresholds
- All changes take effect 20 March
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Alongside the payment increases, changes to something called deeming rates will also kick in on the same date. Deeming is the method Centrelink uses to estimate how much income your financial assets (savings, shares, managed funds) could be generating, regardless of what they actually earn. The lower rate jumps from 0.75% to 1.25% for assets under $64,200 for singles and $106,200 for couples, while the upper rate moves from 2.75% to 3.25% for anything above those thresholds.
The shift means anyone with higher levels of financial assets could see a slight reduction in their payment, though for most younger recipients on JobSeeker or ABSTUDY the indexation increase should land without complication. The Australian Government Actuary recommended the adjustment, and the federal government accepted it as part of a gradual realignment following a freeze on deeming rates during the pandemic.
The March adjustment is one of two annual indexation rounds built into Australia’s social security system, with the other landing in September. Payment rates are recalculated based on movements in the Consumer Price Index, the Pensioner and Beneficiary Living Cost Index and average weekly earnings. Recipients don’t need to do anything to receive the updated amount — Centrelink applies the new rates automatically from 20 March, with the increase reflected in your next regular fortnightly payment after that date.
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