In March 2026, significant updates to Centrelink payments will take effect across Australia. These changes impact Age Pension, Disability Support Pension, Carer Payment, JobSeeker, ABSTUDY, Parenting Payments, Rent Assistance, and other social security benefits.
The updates include payment increases through indexation, adjustments to deeming rates, and revised payment and reporting dates. Understanding these changes is crucial for recipients to plan finances and make sure they receive the correct support.
Why Centrelink Payments Are Changing
Centrelink updates payments twice a year, in March and September, through indexation. This ensures benefits keep pace with inflation, wage growth, and the cost of living.
Along with indexation, deeming rates are also adjusted. Deeming rates are used to calculate the assumed income from financial assets such as savings and investments.
Higher deeming rates may reduce payments for those with significant assets, while most recipients benefit from increased pension and allowance amounts.
Key Changes Effective 20 March 2026
1. Payment Increases
- Over five million Australians receiving social security will see higher payments.
- Age Pension, Disability Support Pension, Carer Payment, and other benefits will increase.
- The full single Age Pension is expected to rise by approximately $22 per fortnight.
- Payments such as JobSeeker, ABSTUDY (aged 22+), Parenting Payment, and Rent Assistance will also be adjusted upward.
2. Deeming Rate Adjustments
- Deeming rates determine the assumed income from financial assets for means-tested payments.
- From 20 March 2026, the lower deeming rate rises to 1.25%, and the upper rate rises to 3.25%.
- Recipients with savings or investments may experience a reduction in payments if the higher deemed income exceeds thresholds.
3. Eligibility
- Standard eligibility criteria remain unchanged.
- Age Pension: 67 years old, Australian residency of at least 10 years (with five continuous).
- Payments continue to be subject to income and assets tests.
Centrelink Payment Summary
| Payment Category | Change From 20 March 2026 | Impact On Recipients |
|---|---|---|
| Age Pension | Indexed for inflation | Higher fortnightly payments |
| Disability & Carer Payments | Indexed | Increased support |
| JobSeeker Payments | Indexed | More income support |
| ABSTUDY (22+) | Indexed | Higher allowances |
| Parenting Payments | Indexed | Increased benefits |
| Rent Assistance | Indexed | Higher maximum support |
| Deeming Rates | Lower: 1.25%, Upper: 3.25% | Higher assumed income may reduce payments |
| Means Tests | Thresholds adjusted | Payment may vary based on assets |
Important Dates And Considerations
- New rates take effect from 20 March 2026.
- Payment dates may shift slightly around public holidays.
- Recipients should review their financial assets and report changes to Centrelink.
- Planning ahead ensures you receive the correct entitlement.
The March 2026 Centrelink changes bring increased payments to millions of Australians, helping them manage living costs. While payment increases benefit most recipients, higher deeming rates may affect those with significant financial assets. Understanding the changes, payment amounts, and reporting requirements will help ensure all eligible Australians receive the support they are entitled to from 20 March 2026 onward.
FAQs
When do the March 2026 Centrelink changes start?
The new payment rates and deeming adjustments take effect on 20 March 2026.
What are deeming rates and how do they affect payments?
Deeming rates are used to calculate assumed income from financial assets. Higher rates may reduce means-tested payments for recipients with significant assets.
Who benefits from the March 2026 indexation?
Recipients of Age Pension, Disability Support Pension, Carer Payment, JobSeeker, ABSTUDY (22+), Parenting Payments, and Rent Assistance will see increased payments.