More than five million Australians will see a boost to their bank accounts next month as the Australian Government applies its bi-annual indexation to social security payments. Effective March 20, 2026, the scheduled increases are designed to ensure that the social safety net keeps pace with inflationary pressures.
Broad-Scale Financial Support
According to data from Services Australia and the Department of Social Services, the adjustment will benefit a diverse range of recipients. This includes over 2.5 million Age Pensioners, as well as those receiving the Disability Support Pension and Carer Payment.
Other critical supports set to increase include:
- JobSeeker Payment (for those aged 22 and over)
- Parenting Payment (Single and Partnered)
- ABSTUDY (for students aged 22 and over)
- Commonwealth Rent Assistance
Estimated Increases for Pensioners
While final figures are confirmed shortly before the rollout based on the latest Consumer Price Index (CPI) and Pensioner and Beneficiary Living Cost Index (PBLCI) data, the Government has released tentative projections. A single person on the full Age Pension is expected to receive an additional $22.20 per fortnight, while couples will see a combined increase of approximately $33.40.
Adjustments to Deeming Rates
The March 20 update also includes a shift in deeming rates, which are used to estimate the income earned from financial assets. Following a recommendation from the Australian Government Actuary (AGA), the Minister for Social Services has confirmed the lower deeming rate will rise to 1.25% and the upper rate to 3.25%.
The government maintains that these rates remain well below historical averages and that for the vast majority of recipients, the indexation boost will more than offset any changes resulting from the new deeming thresholds.
Eligible recipients do not need to take any action; Services Australia will apply the new rates automatically to payments made on or after March 20.
According to official updates from Services Australia and the Department of Social Services (DSS), the following income and asset thresholds are currently in place. These thresholds determine whether you qualify for a full or part pension and are essential for understanding the March 20, 2026, indexation.
Income Test Thresholds
Your pension is reduced if your fortnightly income exceeds these amounts. For most pensioners, for every $1 you earn over the “Full Pension” limit, your pension reduces by 50 cents.
| Recipient Status | Full Pension (Fortnightly Limit) | Part Pension (Cut-off Point) |
| Single | Up to $218.00 | Less than $2,575.40 |
| Couple (Combined) | Up to $380.00 | Less than $3,934.00 |
| Couple (Illness Separated) | Up to $380.00 | Less than $5,094.80 |
Note: The Work Bonus allows eligible pensioners to earn up to $300 per fortnight from work without it affecting their income test.
Asset Test Thresholds
The “Asset Test” limits determine the total value of assets you can own (excluding your principal home) while still qualifying for support.
| Status | Homeowner (Full Pension) | Non-Homeowner (Full Pension) |
| Single | Up to $321,500 | Up to $579,500 |
| Couple (Combined) | Up to $481,500 | Up to $739,500 |
For every $1,000 over these limits, your fortnightly payment reduces by $3.00.
New Deeming Rates (Effective March 20, 2026)
Deeming is the method used by Services Australia to estimate income from your financial assets. Following the Australian Government Actuary’s advice, the following rates will apply:
- Lower Deeming Rate: 1.25% (on assets up to $64,200 for singles / $106,200 for couples)
- Upper Deeming Rate: 3.25% (on assets above those thresholds)
This “gradual reset” ensures deeming rates remain below current market returns while reflecting the broader economic environment. Most recipients will find that the $22.20 fortnightly indexation boost significantly outweighs any impact from these deeming adjustments.
If you are looking for information specifically related to the updates we discussed, you might find these sections helpful:
- Centrelink: servicesaustralia.gov.au/centrelink
- Older Australians (Pensioners): servicesaustralia.gov.au/age-pension
- JobSeeker Payment: servicesaustralia.gov.au/jobseeker-payment
Services Australia has specific phone lines for different payment types to ensure you reach the right team. Most lines are open Monday to Friday, 8 am to 5 pm local time.
| Payment Category | Phone Number |
| Older Australians (Age Pension, Commonwealth Seniors Health Card) | 132 300 |
| Job Seekers (JobSeeker Payment, Health Care Cards) | 132 850 |
| Disability, Sickness and Carers | 132 717 |
| Families (Parenting Payment, FTB) | 136 150 |
| Youth and Students (Youth Allowance, Austudy) | 132 490 |
| ABSTUDY | 1800 132 317 |
| Indigenous Call Centre | 1800 136 380 |
| Multilingual Phone Service (To speak in your language) | 131 202 |
If You are Overseas
If you are calling from outside Australia regarding your pension, you can contact the International Services team:
- International Phone: +61 3 6222 3455 (8 am – 5 pm Hobart time)
- Services Australia also provides “Freecall” numbers for specific countries (e.g., 1866 3433 086 for the USA or 0800 169 5865 for the UK).