From 20 September 2026, the Age Pension rises by $36.80 a fortnight for singles and $55.60 combined for couples — the largest increase since March 2023, driven by a 3.2% rise in the Pensioner and Beneficiary Living Cost Index. The same day, deeming rates on financial assets also lifted by 0.5%. For some pensioners, the deeming rise quietly cancels part of the indexation gain. Whether your pension went up by the full amount, less than that, or didn’t move at all depends on a combination of your assets, your income test position, and which test Centrelink is using to calculate your payment.
Key Questions — Plain Answers
These are the questions people have the moment a pension increase is announced. Some answers are simple. A few are more complicated than they first appear.
The most likely reason is the deeming rate increase that happened on the same day — 20 September 2026. Deeming rates on financial assets rose by 0.5%, meaning Centrelink now assumes your savings, shares, and superannuation earn more income, even if your actual returns didn’t change. If your pension is calculated on the income test rather than the assets test, more deemed income means a slightly lower payment. The rate rise and the deeming rise work in opposite directions for many part-pensioners with financial assets. Check your assessment letter in myGov to see which test is determining your payment and by how much each factor is changing it.
No. The increase is completely automatic. Services Australia applies it to every eligible recipient from the first payment covering a period on or after 20 September 2026. Depending on your payment cycle, the first payment after that date may include some days at the old rate and some at the new — that’s normal and correct. You do not need to phone Centrelink, submit a form, or make any change to your account to receive the new rate. If your payment hasn’t changed by your second payment after 20 September, that’s when it’s worth calling.
Possibly — and it’s worth checking even if you were told you didn’t qualify before. The upper income and assets test cut-off thresholds move with each indexation round. From 20 September 2026, the upper asset threshold for a single homeowner rises to $745,750 (up from $733,500), and for a homeowner couple to $1,121,000 (up from $1,102,500). Someone who was just over the previous limit may now sit within the taper zone and qualify for a part pension. A part pension — even a small one — can also unlock the Pensioner Concession Card, which has its own significant value in cheaper medications and other concessions.
The September 2026 increase is the largest since March 2023 because the Pensioner and Beneficiary Living Cost Index (PBLCI) rose 3.2% in the six months to June 2026 — significantly above general CPI, which tracked at around 2%. The Age Pension is indexed by whichever is higher: CPI or the PBLCI. In this round, the PBLCI won. The largest contributors to that index rise were housing costs (up 5.86% on the six-month measure) and health costs (up 7.08%) — exactly the categories that weigh most heavily in pensioner spending. The March 2026 increase was smaller at $22.20 for singles because that PBLCI reading was lower.
Yes — both are paid at exactly the same maximum rate as the Age Pension, and they increase by the same amounts: $36.80 a fortnight for singles and $55.60 combined for couples. All three payments — Age Pension, Carer Payment, and Disability Support Pension — are indexed at the same time and by the same formula. The new maximum for a single person on any of these payments is $1,237.70 a fortnight. Carer Allowance (a separate, smaller payment) is on a different indexation schedule and does not change in September.
Because the indexation is designed to keep pace with living costs, not to improve your purchasing power above where it was. When housing costs rise 5.86% in six months and health costs rise 7.08% — as they did in the first half of this year — a pension increase of around 3.2% means you’re actually losing ground in those specific categories even as the headline rate goes up. The deeming rate increase on the same day also takes a bite from part-pensioners with savings. The pension has a wage benchmark (27.7% of Male Total Average Weekly Earnings for the single rate) that prevents it from falling too far behind incomes, but it doesn’t guarantee it outpaces the specific costs that dominate most pensioners’ budgets.
Commonwealth Rent Assistance is indexed separately under the same September round. It is paid on top of your main pension payment and is calculated on the rent you actually pay above a threshold. From 20 September 2026, the maximum Rent Assistance for single renters rises to $223.80 per fortnight. The threshold and maximum both move at each September indexation. If you rent and your pension increased automatically, your Rent Assistance should also adjust automatically — but only if Centrelink has your current rental amount on file. If your rent has changed and you haven’t updated it with Centrelink, your Rent Assistance may not reflect your actual entitlement. Update it through myGov.
New Rates — Effective 20 September 2026
These are the confirmed maximum fortnightly rates including the base pension, Pension Supplement, and Energy Supplement. What you actually receive depends on the income and assets tests.
📋 Maximum Fortnightly Pension — Age Pension, DSP & Carer Payment
| Payment | Previous rate | New rate (from 20 Sep) | Increase | Who it covers |
|---|---|---|---|---|
| Age Pension — single | $1,200.90/fn | $1,237.70/fn | +$36.80 | Singles aged 67+ |
| Age Pension — couple combined | $1,810.40/fn | $1,866.00/fn | +$55.60 | Couples both on pension |
| Carer Payment — single | $1,200.90/fn | $1,237.70/fn | +$36.80 | Primary carers |
| DSP — single | $1,200.90/fn | $1,237.70/fn | +$36.80 | Disability Support Pension |
| JobSeeker — single, no children | $808.70/fn* | $824.90/fn* | +$16.20 | Unemployed singles (*excl. Energy Supplement) |
| JobSeeker — single, aged 60+, 9+ months | $862.80/fn | $882.00/fn | +$19.20 | Long-term unemployed over 60 |
| Parenting Payment Single | $1,017.20/fn | $1,037.50/fn | +$20.30 | Single parents with dependent children |
| Rent Assistance — single maximum | Indexed separately | $223.80/fn | Indexed | Renters paying above the threshold |
A single pensioner who has received the Age Pension since Labor came to government in 2022 has seen their payment increase by close to $5,000 a year in cumulative indexation, according to the Department of Social Services. The September 2026 increase alone adds approximately $956.80 per year for a single person and $1,445.60 per year for a couple at the maximum rate. These figures assume the new rates remain unchanged for twelve months — the next review is due 20 March 2027.
The Deeming Rate Increase — What It Means for Your Pension
This is the change that caught many people off guard. On the same day pensions rose, Centrelink’s deeming rates also increased. For part-pensioners with substantial savings or investments, the effect can offset a significant portion of the headline rate rise.
| Threshold | Rate before 20 Sep | Rate from 20 Sep | Applies to |
|---|---|---|---|
| Lower rate — first portion | 1.25% | 1.75% | First $66,800 of financial assets (single) / $110,600 (couple combined) |
| Upper rate — above threshold | 3.25% | 3.75% | Financial assets above $66,800 (single) / $110,600 (couple combined) |
Consider a single pensioner with $200,000 in financial assets (bank savings, term deposits, or an account-based super pension). Under the previous deeming rates, Centrelink assumed those assets earned $5,164 per year, or about $198.62 per fortnight. Under the new rates, the same $200,000 is deemed to earn $6,164 per year — about $237.08 per fortnight. That’s an extra $38.46 per fortnight in deemed income. Under the income test, pension reduces by 50 cents for every dollar of income above the free area ($226 per fortnight for singles). So that extra $38.46 in deemed income could reduce the pension by roughly $19.23 per fortnight — offsetting more than half of the $36.80 indexation gain. The outcome varies entirely by the individual’s total assessable income, assets, and which test determines their payment.
If Centrelink is calculating your payment under the assets test rather than the income test, deeming is irrelevant to your payment — the assets test uses the actual value of your assets, not a deemed income figure. For full pensioners who pass both tests comfortably, the deeming rate is visible in your assessment but doesn’t change your pension amount. The deeming impact is most significant for part-pensioners who are income-test bound — people whose pension is being reduced by the income test rather than the assets test. If you’re not sure which test applies to you, your Centrelink assessment letter spells it out, or you can check under Manage my payments in myGov.
Income and Assets Test Thresholds
Two sets of thresholds matter here. The full-pension thresholds (set on 1 July) didn’t change in September. The upper cut-off thresholds — where the part pension phases to zero — did move, because they’re calculated from the pension rate itself.
| Test & situation | Full pension below | Part pension cuts out above | Taper rate |
|---|---|---|---|
| Income — single | $226/fn | $2,701.40/fn | 50¢ per $1 |
| Income — couple combined | $396/fn | $4,128.00/fn | 25¢ each per $1 |
| Assets — single homeowner | $333,000 | $745,750 | $3/fn per $1,000 |
| Assets — single non-homeowner | $600,000 | $1,012,750 | $3/fn per $1,000 |
| Assets — couple homeowners (combined) | $499,000 | $1,121,000 | $3/fn per $1,000 |
| Assets — couple non-homeowners (combined) | $766,000 | $1,388,000 | $3/fn per $1,000 |
Full-pension lower thresholds were set on 1 July 2026 and are unchanged by the September indexation. Upper cut-offs moved because they are calculated from the pension rate. Your principal home is exempt from the assets test. Centrelink pays the lower result of the income test and the assets test. Confirm your thresholds at servicesaustralia.gov.au.
How Pension Indexation Actually Works
The formula is often described as “keeping pace with inflation,” but that’s only part of it. Understanding the mechanism explains why some increases are larger than others — and why a September increase in a high-cost-of-living period is bigger than a March one in the same year.
The Age Pension is indexed by whichever of three measures gives the largest result. First, the Consumer Price Index (CPI) — the general cost-of-living measure. Second, the Pensioner and Beneficiary Living Cost Index (PBLCI) — a version of CPI weighted specifically for the spending patterns of pensioner households. It gives more weight to health, housing, and insurance costs, which tend to rise faster than general inflation. Third, a benchmark against Male Total Average Weekly Earnings (MTAWE): the combined couple pension must not fall below 41.76% of MTAWE, and the single pension is effectively benchmarked to 27.7% of MTAWE. The government takes whichever calculation produces the highest payment.
The PBLCI drove this round. In the six months to June 2026, the PBLCI rose 3.2% — higher than CPI at roughly 2%. The key contributors: health costs rose 7.08% in that six-month period, and housing costs rose 5.86%. Once spending weights are applied, housing was the single largest contributor to the PBLCI rise, reflecting the ongoing pressure of rents and mortgage costs on pensioner households. The previous September increase was smaller because the PBLCI figure for that period was lower. Indexation varies from round to round — and in rare circumstances (most recently September 2020) it has produced no increase at all.
Common Situations — What to Do Now
The increase is automatic and will appear in your next payment on or after 20 September. If you also receive Commonwealth Rent Assistance and your rental costs have changed since you last told Centrelink, log into myGov and update your rent amount — Rent Assistance only changes when Centrelink has current information. Beyond that, review your payment once it arrives. If the amount looks lower than expected, the deeming rate change may be affecting your income test result — your assessment letter in myGov will show the calculation. The deeming rate change affects income-test-bound pensioners more than assets-test-bound ones, so knowing which test determines your payment is useful.
Definitely worth checking. The upper assets test cut-off for a single homeowner has moved from $733,500 to $745,750 — a rise of $12,250. For a homeowner couple, it moved from $1,102,500 to $1,121,000 — a rise of $18,500. If your assessable assets have also fallen (through spending, or a fall in investment values), the combination could bring you inside the part pension zone. You can get an estimate without going through the full claim process using the online estimator at servicesaustralia.gov.au. Submitting a claim costs nothing and can be withdrawn if you’re assessed as ineligible.
Three possibilities, in order of likelihood. First, the deeming rate increase raised your assessed income, which under the income taper reduced your payment by some amount — partially offsetting the rate rise. Second, your payment cycle means the first payment after 20 September covers days at both the old and new rates, so it’s a blended amount — completely normal. Third, Centrelink may have recently updated your income or assets on record, changing your entitlement at the same time as indexation. Check your assessment letter in myGov to see exactly how your payment is calculated. If the assessment looks wrong — for example, if assets or income are listed incorrectly — call 132 300 to have it reviewed.
Yes — the threshold increase may now put you inside the part pension zone for the first time, or increase a part pension you’re already receiving. But the deeming rate rise matters more here: the income from your super, term deposits, and investments is now deemed at higher rates. If you’re close to the income test cut-off, the deeming increase could push your assessed income above the threshold — making you ineligible for a pension you were previously receiving. Run your numbers through the Services Australia estimator or speak with a Financial Information Service Officer (FISO), a free Centrelink service that models your pension position without any obligation to act on the advice.
Yes — identically. Carer Payment is paid at exactly the same maximum rate as the Age Pension and was indexed by the same amounts on 20 September 2026: $36.80 more per fortnight for singles and $55.60 more combined for couples. Carer Allowance — the smaller, separate payment many carers also receive — is on a different indexation schedule and is not changing in this round. If you receive Carer Allowance in addition to Carer Payment, expect your Carer Payment to increase and your Carer Allowance to remain at its current rate until the next scheduled indexation.
It depends on why. Two benign reasons: if your payment is already at the maximum rate for a full pensioner, the new rate shows as your full entitlement and it did go up — check the dollar amount, not just whether a number appeared. If you received a part payment and the deeming rate change exactly cancelled the indexation gain, your net entitlement may be unchanged. The concerning reason: if Centrelink recently assessed you as ineligible due to a change in assets or income, the indexation round is applied to the new (zero) rate. If you believe you’re still eligible, request a review through myGov or call 132 300. Reviews are your right and cost nothing to request.
Find Help Near You
For anything more complex than a simple rate check — deeming calculations, asset review, or whether you’re being means-tested correctly — a face-to-face or phone appointment is worth the time. Free services exist specifically for this.
📌 The free Centrelink Financial Information Service (FISO) is available by appointment — call 132 300 to book. It’s independent, unbiased, and free.
Online tools: servicesaustralia.gov.au ·
my.gov.au ·
nationalseniors.com.au
Phone Numbers & Resources
This guide covers the Centrelink Age Pension, Carer Payment, Disability Support Pension, and related payment increases from 20 September 2026. Maximum pension rates ($1,237.70 single / $1,866.00 couple combined) are from the Services Australia official announcement dated 8 September 2026. Deeming rate changes (1.75%/3.75%) were announced by the Australian Government on 20 August 2026 and confirmed from nationalseniors.com.au and the Department of Social Services. Income and assets test cut-off thresholds from the Department of Social Services and SuperGuide (updated September 2026). PBLCI indexation figure (3.2%) from National Seniors Australia analysis of ABS data, confirmed August 2026.
This content is general information only. It does not take into account your personal circumstances, income, assets, or objectives. Your actual Centrelink entitlement is determined by Services Australia using your specific income and assets information. Before making decisions about your retirement income, consider speaking with a licensed financial adviser or booking a free Financial Information Service (FISO) appointment through Centrelink on 132 300.