From 20 March 2026, millions of Australians receiving income support will see updated payment rates as part of the government’s regular indexation cycle. The latest changes affect Age Pension, Disability Support Pension, Carer Payment, JobSeeker, Parenting Payment, ABSTUDY (22+), and Commonwealth Rent Assistance.
These adjustments are designed to reflect inflation, wage growth, and broader cost-of-living pressures. While most recipients will benefit from higher fortnightly payments, revised deeming rates may reduce entitlements for those with substantial financial assets.
Here’s a complete breakdown of what’s changing, who it affects, and what you should do next.
Why Payments Are Increasing in March 2026
Twice each year, in March and September, Services Australia reviews major social security payments. This process, known as indexation, ensures government support keeps pace with economic conditions.
Indexation considers:
- Consumer Price Index (CPI)
- Pensioner and Beneficiary Living Cost Index (PBLCI)
- Male Total Average Weekly Earnings (MTAWE)
When inflation or wage benchmarks rise, payment rates are adjusted upward. The March 2026 update reflects ongoing living cost pressures, including housing, groceries, utilities, and healthcare.
Key Changes Effective 20 March 2026
1. Pension and Allowance Increases
More than five million Australians will receive slightly higher fortnightly payments.
The full single Age Pension is expected to increase by approximately $22 per fortnight. Couples combined will also see a rise consistent with indexation benchmarks.
Other payments receiving upward adjustments include:
- Disability Support Pension
- Carer Payment
- JobSeeker Payment
- Parenting Payment
- ABSTUDY (for recipients aged 22 and over)
- Commonwealth Rent Assistance
Although the exact final figures may vary slightly depending on personal circumstances, the increases are automatic and require no action from recipients.
2. Deeming Rate Adjustments
Alongside payment increases, deeming rates will change from 20 March 2026.
New deeming rates:
- Lower rate: 1.25%
- Upper rate: 3.25%
Deeming is used to estimate income earned from financial assets such as:
- Savings accounts
- Term deposits
- Shares
- Managed funds
Rather than assessing actual returns, the system assumes assets generate income at set rates. If deemed income increases due to higher rates, payments may reduce for individuals whose financial assets exceed certain thresholds.
Recipients with minimal savings will likely see little to no impact. However, those with significant bank balances or investments should review their entitlements carefully.
3. Means Test Threshold Adjustments
Income and asset test limits are also adjusted in line with indexation. This means some recipients may:
- Qualify for slightly higher payments
- Enter eligibility if previously just above the cut-off
- Experience minor changes depending on updated thresholds
Standard eligibility rules remain unchanged.
For Age Pension:
- Minimum age remains 67
- Must have at least 10 years Australian residency, including five continuous years
- Subject to income and assets tests
March 2026 Payment Changes Summary
| Payment Category | Change From 20 March 2026 | Expected Impact |
|---|---|---|
| Age Pension | Indexed for inflation | Approx. $22 increase for singles |
| Disability Support Pension | Indexed | Higher fortnightly payment |
| Carer Payment | Indexed | Increased financial support |
| JobSeeker | Indexed | Slight rise in base rate |
| ABSTUDY (22+) | Indexed | Higher student allowances |
| Parenting Payment | Indexed | Improved income support |
| Rent Assistance | Indexed | Higher maximum rates |
| Deeming Rates | 1.25% (lower), 3.25% (upper) | May reduce payments for asset holders |
| Means Test Thresholds | Adjusted | Minor eligibility shifts |
Who Benefits Most?
Pensioners and allowance recipients without large financial assets are expected to benefit the most from the March changes.
Those living primarily on government payments and holding modest savings should see a clear net gain.
On the other hand, retirees with higher bank balances, share portfolios, or investment income may see some or all of their payment increase offset by higher deemed income calculations.
The overall financial outcome will depend on:
- Total assessable assets
- Income levels
- Homeownership status
- Relationship status
Important Dates to Remember
- 20 March 2026: New payment rates take effect
- Late March 2026: First payments at updated rates begin
- Public holidays: Some payment dates may shift slightly
Recipients do not need to reapply. Updated rates are applied automatically.
What Recipients Should Do Now
Although increases happen automatically, it’s wise to:
Review your financial assets
Ensure your bank balances and investments are correctly reported
Update income details if circumstances have changed
Check your MyGov account for updated payment summaries
Failure to report accurate financial information can result in overpayments or underpayments.
If you are close to eligibility thresholds, even small asset changes could influence your entitlement.
Broader Cost-of-Living Context
The March 2026 changes come amid ongoing economic pressures. While inflation has moderated compared to earlier peaks, living costs remain elevated.
The indexation system ensures income support payments maintain purchasing power over time. However, increases are modest rather than dramatic, designed to preserve value rather than provide large boosts.
For many Australians relying on income support, even small fortnightly increases can assist with rising utility bills, rent, food, and medical expenses.
Key Takeaways
- New payment rates begin 20 March 2026
- Full single Age Pension expected to rise by around $22 per fortnight
- JobSeeker, Parenting Payment, ABSTUDY (22+), and Rent Assistance also increase
- Deeming rates rise to 1.25% and 3.25%
- Higher savings may reduce payments under revised deeming rules
- No changes to Age Pension age or residency requirements
- Updates are automatic, but accurate reporting remains essential
Final Word
The March 2026 indexation update brings welcome increases to pensions and allowances across Australia. For most recipients, the changes provide modest financial relief against continued cost pressures. However, higher deeming rates mean those with larger financial assets should review their situation carefully.
Understanding how indexation, deeming, and means testing interact is essential to ensuring you receive the correct entitlement. As always, keeping your financial details up to date will help avoid payment disruptions and ensure you receive the full support available from 20 March 2026 onward.