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| Pensioner struggling to buy food in Supermarket Photo by Gemini AI |
Centrelink Payments Are Increasing in 2025: What You Need to Know
In a move to provide financial relief amid rising living costs, the Australian Government is increasing Centrelink payments through its regular indexation process. This will provide a welcome boost to millions of Australians, including pensioners, students, and job seekers.
Payment Overview
A number of key Centrelink payments are set to increase in 2025. These increases are part of the government’s commitment to ensuring social security payments keep pace with the cost of living. The increases are being implemented in two stages: on March 20, 2025, and again on July 1, 2025.
The payment increases are not a one-off “cash boost” but rather an ongoing adjustment to fortnightly payment rates. This aims to provide sustained support for those who rely on these payments to cover essential expenses.
Who is Eligible?
The payment increases will benefit a broad range of recipients. This includes those on:
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Pensions: Age Pension, Disability Support Pension (DSP), and Carer Payment.
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Allowances: JobSeeker Payment, Parenting Payment, Youth Allowance, Austudy, and ABSTUDY.
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Family Payments: Family Tax Benefit.
Eligibility for these increases is automatic for anyone currently receiving an eligible Centrelink payment.
Payment Schedule
The first round of increases was applied on March 20, 2025. A second, significant round of indexation is set to take effect from July 1, 2025. These increases will be automatically applied to eligible recipients’ regular fortnightly payments.
You do not need to take any action to receive the new payment rates. The updated amounts will be deposited automatically into your linked bank account on your scheduled payment day.
Examples of Payment Increases
The indexation on July 1, 2025, will see a number of payments rise, with key examples including:
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Age Pension: Single pensioners will see an increase in their maximum fortnightly rate.
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JobSeeker Payment: Recipients will also receive a modest increase to their fortnightly payments.
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Youth Allowance and Austudy: Students and job seekers on these payments will also benefit from an increase to their fortnightly rates.
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Family Tax Benefit: Families will see an increase in the maximum fortnightly rate for each child.
These increases are part of a broader indexation that also affects income and asset thresholds, meaning more people may now be eligible for a full or part pension.
How to Ensure You Receive Your Correct Payment
To ensure your payments are not delayed and that you receive the correct amount, it is essential to keep your details up to date with Services Australia. You should:
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Update your bank details: Make sure Services Australia has your correct and current bank account information.
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Keep your address current: An up-to-date address helps ensure you receive all correspondence.
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Check your details on myGov: You can easily review and update your personal information through your myGov account linked to Centrelink.
For any questions or to check your specific payment rates, you can log in to your myGov account or contact Services Australia directly.
Based on the most recent information, there are specific and significant increases to a number of Centrelink payments taking effect on September 20, 2025.1 These increases are part of the regular indexation process to help social security payments keep pace with the cost of living.2
Here are the specific payment increases:
Pensions (Age Pension, Disability Support Pension, Carer Payment)3
Other Allowances and Payments
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JobSeeker Payment, ABSTUDY (22 and over), and Parenting Payment: These payments will also see an increase, although the specific dollar amounts are not detailed in all sources. The increases are being applied through indexation to help recipients with everyday costs.7
To be eligible for the JobSeeker Payment, you must meet several key criteria related to your personal circumstances, residency, and financial situation.1
Residency: You must be living in Australia and be an Australian resident or the holder of a specific visa.5 A newly arrived resident’s waiting period of up to four years may apply.6
Financial Situation: You must meet both an income and an assets test.7 These tests assess your personal and partner’s financial situation to determine if you are eligible for the payment and at what rate.8
Additional Requirements and Considerations
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Mutual Obligation Requirements: Once your claim is approved, you will have to meet certain obligations, which may include:
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Actively looking for work and applying for jobs.
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Attending appointments with an employment services provider.
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Participating in training, courses, or other agreed-upon activities.9
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Waiting Periods: There may be one or more waiting periods before you receive your first payment, including:
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A Liquid Assets Waiting Period based on the amount of money you have in savings and other liquid assets.11
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Income and Assets Tests: Your payment rate is determined by the test that results in the lower entitlement. This includes your income and assets, and for partnered individuals, those of your partner as well.13 There are specific thresholds for both tests, and if you or your partner’s income or assets exceed these limits, your payment may be reduced or canceled.14 Your family home and some other assets are exempt from the assets test.