Australia’s Centrelink payments are set for significant changes starting 20 March 2026, with millions of recipients set to receive higher payments. Alongside these increases, deeming rates and thresholds used to calculate income from savings and investments are also changing.
These updates aim to support Australians on income support while keeping assessments in line with current economic conditions.
Centrelink Payment Increases From March 2026
Centrelink payments are regularly adjusted through indexation, which reflects inflation, wage growth, and cost of living. From 20 March 2026, major income support payments such as the Age Pension, Disability Support Pension, and Carer Payment will increase by approximately $22.20 per fortnight. This adds up to roughly $5,545 per year for those on full single rates.
Other payments, including JobSeeker, Parenting Payment, ABSTUDY (for recipients over 22), and Commonwealth Rent Assistance, will also rise. The exact increase depends on individual circumstances, but most recipients will see a positive impact on their income.
What Are Deeming Rates And Why They Matter
Deeming rates are used to calculate the income earned from financial assets like savings accounts, term deposits, shares, and managed funds. Instead of using actual earnings, Centrelink assumes a certain “deemed income” based on these rates. This deemed income is used in the income test to determine eligibility and payment amounts.
Higher deemed income can reduce payments for recipients with significant financial assets, while those with fewer assets are less affected. Deeming rates ensure that income support calculations remain stable even when actual investment returns fluctuate.
New Deeming Rates And Thresholds From March 20, 2026
From 20 March 2026, deeming rates will increase by 0.5 percentage points. This update applies to both single recipients and couples, and affects the way Centrelink calculates deemed income on financial assets.
| Category | Asset Threshold | Previous Rate | New Rate |
|---|---|---|---|
| Singles | First $64,200 | 0.75% | 1.25% |
| Couples (combined) | First $106,200 | 0.75% | 1.25% |
| All recipients | Above thresholds | 2.75% | 3.25% |
These adjustments mean that Centrelink assumes higher income from savings, which may slightly reduce payments for recipients with large financial assets.
Who Is Affected By Deeming Rate Changes
The changes will directly affect around 771,000 recipients of Centrelink payments. This includes:
- 460,000 Age Pensioners
- 96,000 JobSeeker recipients
- 62,000 Disability Support Pension recipients
- 57,000 Parenting Payment (Single) recipients
Recipients with minimal financial assets are unlikely to see a reduction in payments, but those with larger savings or investments may experience some decrease due to increased deemed income.
How These Changes Impact Your Budget
For most people, the $22.20 per fortnight increase is expected to offset the impact of higher deeming rates. However, recipients with substantial financial assets should review their assets and Centrelink records to understand the net effect on their payments.
It is also important to note that payment dates around public holidays may shift, so recipients should plan ahead to ensure there are no surprises in their budgets.
Future Outlook
Deeming rates will continue to be reviewed regularly to reflect economic conditions. Any future adjustments are expected to be gradual to minimize sudden financial impacts. By coordinating these updates with regular payment indexation, the government ensures recipients are supported while maintaining fairness in the income test.
The Centrelink payment boost and updated deeming rates, effective 20 March 2026, will help millions of Australians. While most recipients will benefit from higher payments, individuals with significant financial assets may see slightly lower amounts due to higher deemed income. Staying informed and reviewing your financial situation is key to understanding how these changes will affect your Centrelink support.
FAQs
When do the Centrelink payment increases take effect?
The new payment rates and deeming thresholds start on 20 March 2026.
Will everyone receiving Centrelink payments get more money?
Most recipients will receive higher payments, but those with significant savings may see a small reduction due to higher deemed income.
Why are deeming rates changing?
Deeming rates are adjusted to reflect current economic conditions and ensure income support calculations are fair and up to date.