Australia’s social security payments have been adjusted again as part of the regular September indexation. From 20 September 2025, more than five million people will see a boost to their fortnightly income, with the increases aimed at helping Australians manage the cost of living as inflation eases.

Broader Increases Across Major Payments

The latest update delivers higher payments for pensioners, carers, and jobseekers. More than 2.6 million Age Pensioners are among those benefiting from the rise.

Single recipients of the Age Pension, Disability Support Pension, or Carer Payment now receive an extra $29.70 each fortnight. For couples, the increase is $22.40 per person. Overall, annual pension payments are now almost $5,000 higher than when Labor took office in 2022.

JobSeeker, Parenting Payment, ABSTUDY (for recipients aged 22 and over), and Commonwealth Rent Assistance have also risen. The maximum rate of Rent Assistance has now grown by nearly 50 per cent since Labor formed government — the strongest rise in decades for renters receiving income support.

Adjustment to Deeming Rates

The September changes also include a revision to deeming rates, which affect how income from savings and investments is calculated.

During the COVID-19 pandemic, deeming rates were frozen at historically low levels as part of emergency economic support. That freeze, extended through the recovery period, saved recipients an estimated $1.8 billion.

From 20 September, rates are being gradually returned to more normal levels. The new deeming rate is 0.75% for the first $64,200 of assets for singles and $106,200 for couples combined. Assets above those amounts are deemed at 2.75%. These rates remain below pre-pandemic averages, reflecting a cautious approach to the policy shift.

The Australian Government Actuary will now provide recommendations for future deeming rates, ensuring they reflect the investment returns realistically available to pensioners and other recipients. The government retains flexibility to adjust rates in response to exceptional economic circumstances.

Ongoing Pension Growth

This latest increase continues the steady rise in pension payments since 2022.

Australia’s biannual indexation—each March and September—keeps social security payments aligned with inflation and wage growth, helping maintain their real value.

The consistent upward trend shows stronger financial security for older Australians.

Supporting Cost-of-Living Relief

The government has highlighted this latest round of adjustments as part of its broader commitment to easing living costs for older Australians and low-income households.

Since 2022, related measures have included cheaper prescription medicines, expanded bulk-billing incentives, at least $700 in energy bill relief for eligible households, and an additional $5.6 billion investment in aged care. More than 27,000 self-funded retirees have also gained access to the Commonwealth Seniors Health Card, allowing them access to cheaper medicines and medical services.

The next round of indexation is due in March 2026. Further updates to payments, rent assistance, and deeming settings are expected as part of the government’s ongoing review of the social security system.