Centrelink Payment Increases: What to Expect on 20 March 2026
Last updated: 26 February 2026
On 20 March 2026, Centrelink payments will increase as part of the government's regular indexation process. This page explains which payments are affected, how the increase is calculated, and what the new rates are expected to be — updated in place when DSS publishes confirmed figures.
Which payments increase on 20 March?
The following payments are indexed on 20 March 2026:
- Age Pension
- Disability Support Pension (DSP)
- Carer Payment
- JobSeeker Payment
- Commonwealth Rent Assistance — indexed alongside the payment it's attached to
Supplements attached to these payments — including the Pension Supplement and Energy Supplement — are also adjusted.
Youth Allowance (student rate) follows a different schedule and was last indexed on 1 January 2026.
How is the increase calculated?
Centrelink uses three economic measures and applies whichever produces the highest result:
- Consumer Price Index (CPI) — measures changes in the cost of goods and services
- Pensioner and Beneficiary Living Cost Index (PBLCI) — a CPI variant weighted toward costs more relevant to pensioners and benefit recipients
- Male Total Average Weekly Earnings (MTAWE) — a wage benchmark that ensures pensions maintain a set proportion of average wages
For the March 2026 indexation, the December quarter 2025 CPI figure of 0.6% is the key input, as published by the Australian Bureau of Statistics. The MTAWE data for this period is due 26 February 2026 and will be used alongside CPI and PBLCI to confirm the final increase amount.
How much will payments increase?
Based on the December quarter 2025 CPI data, National Seniors Australia has estimated the following increases — a projection the Minister for Social Services has confirmed is consistent with the government's own modelling:
| Payment | Estimated increase |
|---|---|
| Age Pension — single | ~$22.20 per fortnight |
| Age Pension — couple combined | ~$33.40 per fortnight |
| DSP — single | Similar to Age Pension single |
| Carer Payment — single | Similar to Age Pension single |
For current rates before the March increase, see:
The deeming rate change — what Age Pension recipients need to know
On 20 March 2026, deeming rates will also increase. This is separate from indexation but takes effect on the same date.
Deeming rates are used by Centrelink to estimate the income your financial assets — savings accounts, shares, term deposits — are assumed to earn, regardless of what they actually earn. This assumed income is counted in the Age Pension income test.
The new deeming rates from 20 March 2026 will be:
- Lower rate: 1.25% — applies to the first $64,200 of financial assets for singles, $106,200 for couples combined
- Upper rate: 3.25% — applies to financial assets above those thresholds
Around 771,000 income support recipients are affected by deemed income. For full-rate pensioners with no financial assets, deeming has no effect. For part-rate pensioners with significant savings or investments, the higher deeming rates may increase your assessed income — which could partially offset the indexation increase to your payment.
Only Centrelink can tell you your individual outcome. Check your MyGov inbox after 20 March for a letter confirming your updated rate.
Do you need to do anything?
No. Increases are applied automatically by Services Australia. Your payment will adjust from 20 March without you needing to contact Centrelink, update MyGov, or submit a new claim. If your payment seems incorrect after 20 March, check your MyGov inbox — Services Australia will send a letter confirming your updated rate.
When will we know the exact new rates?
DSS typically publishes the confirmed "Guide to Australian Government Payments" rate chart around 13–15 March 2026 — approximately one week before the effective date. We will update this page and all rate pages on mypaymentrates.com.au as soon as confirmed figures are available.