In March 2025, approximately five million Australians will experience an increase in their Centrelink support payments as the government adjusts them to align with inflation.
This biannual adjustment, occurring every March and September, aims to alleviate financial pressures amid rising living costs, ensuring that recipients maintain their purchasing power.
Understanding the March 2025 Pension Increase
The March 2025 pension increase is part of the Australian government’s commitment to support individuals relying on various welfare payments.
By indexing these payments to inflation, the government ensures that the real value of assistance keeps pace with the cost of living.
Payments Affected by the Increase
Several key payments will be impacted by the March 2025 adjustment, including:
- Age Pension
- Carer Payment
- Disability Support Pension
- JobSeeker Payment
- Youth Allowance
- Commonwealth Rent Assistance
These payments are subject to periodic reviews to align with economic changes, preventing recipients from falling behind due to inflationary pressures.
Expected Increases
While the final figures for the 2025 income adjustments are expected to be announced in early March, historical data provides insight into potential changes.
In September 2024, aged pensioners received a fortnightly increase of $28.10 for singles and $42.40 for couples combined.
The maximum pension for singles rose to $1,144.40 per fortnight, totaling approximately $29,754 per year. For couples combined, the annual pension reached around $44,855.
Payments for single parents increased by $19.80, bringing the fortnightly rate to $1,026.30, while JobSeeker rose by $15.30.
The maximum rates of Commonwealth Rent Assistance saw a 10% increase, with additional indexation applied, resulting in a $23 fortnightly boost for single recipients and $27.02 for families with up to two children.
The following table summarizes the September 2024 payment rates:
| Payment Type | Recipient Type | Fortnightly Increase | New Fortnightly Rate | Approximate Annual Rate |
|---|---|---|---|---|
| Age Pension | Single | $28.10 | $1,144.40 | $29,754 |
| Age Pension | Couple (combined) | $42.40 | $1,725.20 | $44,855 |
| Parenting Payment | Single Parent | $19.80 | $1,026.30 | $26,684 |
| JobSeeker Payment | Single | $15.30 | $778.00 | $20,228 |
| Commonwealth Rent Assistance | Single | $23.00 | Varies | Varies |
| Commonwealth Rent Assistance | Family (up to 2 children) | $27.02 | Varies | Varies |
Note: These figures are based on September 2024 data. Actual increases for March 2025 will be confirmed by Services Australia.
How Increases Are Determined
The adjustment amount depends on which inflation measure rises the most: the Consumer Price Index (CPI), Pensioner and Beneficiary Living Cost Index (PBLCI), or the Male Total Average Weekly Earnings (MTAWE).
These measures ensure that social security payments reflect the actual cost increases experienced by recipients.
Impact on Recipients
The upcoming increases aim to provide timely financial boosts for those receiving allowance payments and pensions, ensuring vulnerable Australians have more money for everyday expenses.
As Social Services Minister Amanda Rishworth stated in September 2024, “Indexation, combined with our budget measures, means the maximum rates of Commonwealth Rent Assistance have increased by approximately 45% since the Albanese Government took office.”
The March 2025 Centrelink pension increase reflects the government’s ongoing commitment to support Australians facing financial challenges due to rising living costs.
By adjusting payments in line with inflation, the government ensures that welfare recipients can maintain their purchasing power and meet essential needs.
FAQs
When will the new payment rates take effect?
The new payment rates are scheduled to take effect in March 2025, with exact dates to be confirmed by Services Australia.
How can I find out my new payment rate?
Once the adjustments are officially announced, you can check your new payment rate by logging into your myGov account linked to Centrelink or by contacting Services Australia directly.
Will all Centrelink payments be adjusted in March 2025?
Most major payments, including the Age Pension, Carer Payment, Disability Support Pension, JobSeeker Payment, Youth Allowance, and Commonwealth Rent Assistance, are subject to biannual indexation. However, it’s essential to verify with Services Australia whether your specific payment will be adjusted.