More than five million Australians will see their Centrelink payments rise from 20 March 2026, with single Age Pensioners receiving about $22.20 extra per fortnight under the latest indexation update. The increase applies across major income support categories and reflects adjustments linked to inflation and wage growth.
For retirees managing rising grocery bills, medical costs and energy prices, the March 2026 update delivers a modest but meaningful lift in fortnightly income. However, simultaneous changes to deeming rates mean the real impact will differ depending on personal financial circumstances.
Below is a clear breakdown of what is changing and how it may affect pensioners across Australia.
Key Takeaways
• Payments increase from 20 March 2026
• Single Age Pension rises by about $22.20 per fortnight
• Couples combined receive roughly $33.40 extra per fortnight
• Disability Support Pension and Carer Payment also increase
• Deeming rates reset to 1.25% (lower tier) and 3.25% (upper tier)
• Over five million Australians benefit from indexation
Why Payments Are Increasing
Australia adjusts many Centrelink payments twice a year, in March and September. These revisions are tied to movements in the Consumer Price Index and wage benchmarks. The system is designed to maintain purchasing power so that payments do not fall behind the real cost of living.
As living expenses have remained elevated across 2025 and into early 2026, the March indexation ensures pension rates keep pace. While the increase is not a one-off bonus, it becomes part of the permanent base rate moving forward.
Updated Payment Changes From 20 March 2026
The following table outlines the estimated fortnightly increases across key support categories.
| Payment Category | Estimated Fortnightly Increase | Who It Affects | Notes |
|---|---|---|---|
| Age Pension (Single) | ~$22.20 | Full-rate single pensioners | Base rate adjustment |
| Age Pension (Couple Combined) | ~$33.40 | Couples on full pension | Split between partners |
| Disability Support Pension | Similar rise | Eligible DSP recipients | Indexed at same rate |
| Carer Payment | Similar rise | Full-time carers | Indexed payment |
| JobSeeker Payment | Variable | Eligible job seekers | Indexed amount |
| Parenting Payment | Variable | Eligible parents | Indexed adjustment |
| Commonwealth Rent Assistance | Adjusted | Rent assistance recipients | Reflects CPI changes |
Exact amounts vary depending on income tests, asset levels and eligibility conditions.
Deeming Rate Adjustments Also Begin
Alongside the payment boost, deeming rates used in Centrelink income testing are updated from the same date. These rates estimate how much income is assumed to be earned from financial assets such as savings, term deposits and shares.
From 20 March 2026:
• Lower deeming rate: 1.25%
• Upper deeming rate: 3.25%
• Threshold for singles: $64,200
• Threshold for couples combined: $106,200
If your financial assets exceed the lower threshold, Centrelink applies the higher rate to the portion above that level. This deemed income counts toward the pension income test.
For pensioners with modest savings, the payment increase may fully flow through. For retirees with higher financial assets, the increase in deemed income could slightly reduce pension entitlements, offsetting part of the gain.
How Much Is the Annual Benefit?
For a single pensioner, an extra $22.20 per fortnight equates to approximately $577 more per year. For couples, the combined yearly increase approaches $868.
While these amounts may appear small, they can ease pressure in areas such as:
• Rising grocery costs
• Electricity and gas bills
• Pharmaceutical expenses
• Transport and fuel
• Insurance premiums
For pensioners who rely solely on government income support, even incremental increases can improve monthly budgeting stability.
Who Benefits the Most?
Full-rate pensioners with limited financial assets generally receive the full uplift. This group often includes:
• Seniors with minimal savings
• Long-term carers
• Disability Support Pension recipients without significant investments
Part-pensioners, on the other hand, may see a reduced benefit depending on how income and assets interact with deeming calculations.
If you receive a part pension, it may be worth reviewing your financial details in your Centrelink account to understand the exact effect.
What Pensioners Should Do Now
No action is required for eligible recipients. Adjustments occur automatically from 20 March 2026. Payments deposited after that date will reflect the updated rate.
However, pensioners should:
• Review income and asset details in their Centrelink profile
• Check updated payment summaries after 20 March
• Consider financial advice if holding significant investments
• Monitor future September 2026 indexation updates
Understanding how income testing works can help prevent unexpected changes later in the year.
Broader Economic Context
The March 2026 indexation reflects ongoing inflationary pressures seen over the past year. While inflation has moderated compared to previous peaks, everyday living costs remain elevated in many categories including food, housing and healthcare.
The government’s indexation framework ensures payments adjust in line with official economic data rather than political discretion. This system provides stability and predictability for retirees planning long-term budgets.
Final Outlook for 2026
The March increase is the first adjustment for 2026, with the next scheduled review in September. If inflation trends continue upward, further increases may follow later in the year.
For now, the $22.20 fortnightly rise provides targeted support to seniors navigating higher living expenses. While deeming rate changes introduce complexity for some part-pensioners, the majority of full-rate recipients will experience a direct boost in take-home income.
As always, individual circumstances determine the final outcome. Pensioners concerned about how the new settings affect them should consult Services Australia or a licensed financial adviser for tailored guidance.
Staying informed about indexation dates and policy updates remains essential for retirees who depend on Centrelink payments as their primary source of income.