Millions of Australians are set to receive a boost in their pension and Centrelink payments from March 20, 2025, as part of the federal government’s biannual indexation process. This change will benefit recipients of the Age Pension, Carer Payment, JobSeeker, Commonwealth Rent Assistance, Parenting Payment, and Disability Support Pension.
The adjustments aim to ensure that social security payments keep pace with inflation and rising living costs, offering financial relief to retirees, job seekers, and vulnerable Australians.
How Much Will Pensions and Centrelink Payments Increase?
The increases in pension and Centrelink payments are determined based on the Consumer Price Index (CPI), Wage Price Index (WPI), and the Pensioner and Beneficiary Living Cost Index (PBLCI). The government uses the highest measure among these to set the new payment rates.
Age Pension Increase
- Single pensioners will see their fortnightly payments increase by $4.52, bringing their new total to $1,148.92 per fortnight.
- Couples (combined payments) will receive an additional $6.82, raising their total to $1,732.02 per fortnight.
- These increases, however, are smaller compared to September 2024’s rise, when singles received $26.54 extra and couples saw a $41.17 increase per fortnight.

JobSeeker and Other Allowance Payments
- The exact increase for JobSeeker, Youth Allowance, and ABSTUDY will be confirmed closer to March, but these payments typically rise with inflation.
- Payment adjustments ensure that recipients are not left behind as living costs rise.
Carer Payment Adjustments
- Carers on the Carer Payment will gain greater work flexibility, allowing them to distribute 100 working hours over four weeks without impacting their payments.
- This change aims to support carers who wish to balance work with caregiving responsibilities.
Commonwealth Rent Assistance
- Rent assistance recipients will also see an increase in payments.
- The exact amount of the increase will be based on rental market trends and cost-of-living adjustments.
Why Are These Changes Happening?
Australia’s social security payments are adjusted twice a year—in March and September—to ensure payments reflect changes in the cost of living. This helps pensioners, job seekers, and low-income Australians maintain their purchasing power.
The indexation process is based on the Consumer Price Index (CPI) and Wage Price Index (WPI), ensuring that payments increase in line with inflation rather than lose value over time.
These adjustments come amid growing concerns about Australia’s rising cost of living, particularly housing costs, food prices, and energy bills.
For more information on how Centrelink payment rates are calculated, visit the Australian Bureau of Statistics (ABS).
How Will This Impact Australians?
Retirees and Pensioners
The Age Pension increase, though modest, provides some financial relief for retirees who rely on their pension for day-to-day expenses. With inflation slowing down compared to previous years, the government has implemented smaller increases than in September 2024.
Carers and Parents
Changes to the Carer Payment give carers more flexibility to work part-time without losing their payments. This helps thousands of Australians caring for family members while trying to remain financially stable.

Job Seekers and Low-Income Australians
The increase in JobSeeker and Rent Assistance is essential for those facing financial hardship, particularly as housing affordability remains a major concern across Australia.
What’s Next?
With the next round of payment increases scheduled for September 2025, the government will continue to monitor economic conditions and adjust payments accordingly.
The Australian government has also hinted at further welfare reforms aimed at supporting low-income earners, pensioners, and those struggling with rising costs.
To stay up to date with changes in Centrelink payments, Australians are encouraged to regularly check Services Australia’s website or visit their nearest Centrelink office.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.

A senior at Yale-NUS College with interests in developmental and labour economics, as well as creative non-fiction and poetry. Currently, I’m studying as an Economics major and an Arts and Humanities minor (focusing on Creative Writing) with heavy involvement in the Singaporean journalism scene and involved in research on economic history and educational policy. I’m working as an author for SKC News, Yale-NUS’ student publication, as a writer for Wingspan, Yale-NUS’ alumni magazine, and as a tutor for the NUS Libraries Writer’s Centre. | Linkedin