How Centrelink Indexation Works
Why Centrelink payment rates change, and when
What is indexation?
Centrelink payment rates are indexed — adjusted upward — to keep pace with the cost of living. Without indexation, the real value of payments would erode over time as prices rise.
Indexation is automatic and governed by legislation. DSS calculates the new rates and publishes them in the A Guide to Australian Government Payments before each indexation date.
CPI — Consumer Price Index
The Consumer Price Index measures how much prices have changed across a broad basket of goods and services — groceries, housing, transport, healthcare, and more. It is published by the Australian Bureau of Statistics (ABS) each quarter.
Most Centrelink allowance payments (JobSeeker, Youth Allowance, Parenting Payment) are indexed to CPI only. When CPI rises, so do payment rates.
PBLCI — Pensioner and Beneficiary Living Cost Index
The Pensioner and Beneficiary Living Cost Index is a specialised measure that tracks price changes in the goods and services that welfare recipients actually buy. Because pensioners spend a higher proportion of their income on healthcare and utilities than the general population, PBLCI can rise faster than CPI in some periods.
Pension payments — Age Pension, Disability Support Pension, and Carer Payment — are indexed to the higher of CPI or PBLCI. This ensures pensioners aren't disadvantaged if their specific cost of living rises faster than the general rate.
MTAWE benchmark (pensions only)
Age Pension, DSP, and Carer Payment rates are also benchmarked against Male Total Average Weekly Earnings (MTAWE). Under legislation, the couple combined pension rate must be at least 41.76% of MTAWE. If the CPI/PBLCI increase would result in a rate below this benchmark, the rate is instead set at the benchmark.
In practice, MTAWE benchmarking occasionally drives pension increases beyond what CPI alone would produce — particularly in periods of strong wage growth.
Indexation dates
Most Centrelink rates are adjusted on three dates each year:
Summary by payment type
| Payment | Index measure | Dates |
|---|---|---|
| Age Pension | Higher of CPI or PBLCI; MTAWE benchmark | 20 Mar, 20 Sep |
| DSP, Carer Payment | Higher of CPI or PBLCI; MTAWE benchmark | 20 Mar, 20 Sep |
| JobSeeker Payment | CPI | 20 Mar, 20 Sep |
| Youth Allowance | CPI (rates); separate threshold indexation | 20 Mar, 20 Sep, 1 Jan |
| Parenting Payment | CPI (partnered); higher of CPI/PBLCI (single) | 20 Mar, 20 Sep |
| Rent Assistance | CPI | 20 Mar, 20 Sep |