New Payment Rates for Age Pension and Centrelink Benefits Announced for March 2025

Millions of Australians will receive a modest increase in their Centrelink payments from March 20, 2025, as part of the government’s biannual indexation process. The adjustment will affect those receiving the Age Pension, Carer Payment, JobSeeker, Commonwealth Rent Assistance, Parenting Payment, and Disability Support Pension.

This increase aims to keep social security payments in line with inflation and wage growth, helping pensioners and low-income Australians manage rising living costs.

How Much Will the Pension Increase?

The amount of increase varies depending on the type of payment. The indexation process is calculated based on the Consumer Price Index (CPI), Wage Price Index (WPI), and the Pensioner and Beneficiary Living Cost Index (PBLCI).

Age Pension Increase

• Single pensioners will receive an additional $4.52 per fortnight, bringing their total to $1,148.92 per fortnight.
• Couples (combined payments) will see an increase of $6.82 per fortnight, bringing their new total to $1,732.02 per fortnight.
• These increases are significantly smaller than the previous adjustment in September 2024, when singles received an extra $26.54 and couples received an additional $41.17 per fortnight.

JobSeeker and Other Allowances

• The JobSeeker Payment, Youth Allowance, and ABSTUDY rates will also increase, with the exact figures expected to be confirmed closer to March.
• Adjustments will reflect inflation and wage growth to ensure recipients can afford essential expenses.

Carer Payment Adjustments

• Carers on the Carer Payment will be allowed to work up to 100 hours over four weeks without losing their benefits.
• This provides greater work flexibility while continuing to support those providing care to family members.

Commonwealth Rent Assistance

• Recipients of Commonwealth Rent Assistance will see an increase in their payments to help with rising rental costs.
• The exact amount will be determined based on rental market trends and cost-of-living adjustments.

Why Is This Change Happening?

The Australian government adjusts Centrelink payments twice a year—in March and September—to ensure they keep pace with the rising cost of living. These increases are based on economic indicators such as the CPI, WPI, and PBLCI, with the highest measure dictating the adjustment amount.

With inflation slowing down compared to previous years, the upcoming increase is smaller than expected, but it still provides relief for those dependent on government support.

How Will This Impact Australians?

Retirees and Pensioners

The Age Pension increase provides some relief for retirees facing rising food, healthcare, and energy costs. However, the smaller increase compared to previous years reflects lower inflation.

Carers and Parents

The new Carer Payment rules allow carers to work part-time without financial penalties. This change is expected to benefit thousands of Australians caring for loved ones.

Job Seekers and Low-Income Australians

For those on JobSeeker and Rent Assistance, the increase provides necessary financial support, especially as housing affordability remains a major challenge in many cities.

Final Thoughts

The next round of Centrelink payment increases is scheduled for September 2025. The government is monitoring economic conditions and may introduce additional welfare reforms to further assist low-income earners, pensioners, and job seekers.

Australians are encouraged to check their MyGov accounts or visit Services Australia for up-to-date information on their entitlements.

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.