From 20 March 2026, Age Pension and several Centrelink payments will increase as part of the government’s regular indexation process. The adjustment aims to help older Australians manage rising living costs, although the increase is relatively modest.
The payment change is designed to protect the social security system while ensuring pension payments keep pace with inflation and wage growth.
What Changes on 20 March 2026?
Every March and September, Centrelink adjusts payments through a process known as indexation. This update affects several government benefits, including the Age Pension.
The March 2026 adjustment will affect more than five million Australians who receive Centrelink payments.
Single Age Pension recipients will receive an increase of $22.20 per fortnight.
Each member of a couple receiving the full pension will receive $16.70 extra per fortnight.
The combined increase for couples is about $33.40 per fortnight.
Disability Support Pension and Carer Payment recipients will also see an increase of about $22.20 per fortnight.
These adjustments occur because Age Pension payments are linked to average wage growth and inflation. This ensures pensioners maintain their purchasing power as living costs rise.
How the Increase May Help Your Budget
Although the increase may appear small, the additional payments can add up over the course of a year and help cover everyday expenses.
Single pensioners will receive approximately $577 extra per year.
Couples receiving the full pension will receive around $868 more per year combined.
For retirees living on a fixed income, even modest increases can help offset rising costs for groceries, utility bills, and medical expenses.
Additional payments such as Commonwealth Rent Assistance and other concessions may also increase, providing extra support for renters and low-income households.
Projected Age Pension Payment Rates (From 20 March 2026)
Recipient Type
Current Maximum (per fortnight)
Increase
New Maximum (per fortnight)
Single
$1,178.70
$22.20
$1,200.90
Couples (each)
$888.50
$16.70
$905.20
Couples (combined)
$1,777.00
$33.40
$1,810.40
The figures above represent the maximum payment rates. Some pensioners may receive lower payments depending on the income and asset tests used by Centrelink.
Changes to Income Limits, Deeming, and Eligibility
Alongside payment increases, some income and asset thresholds are also being updated. These adjustments may allow part-pensioners to earn slightly more income or hold additional savings without losing their eligibility.
Higher income and asset thresholds may allow more people to qualify for a part pension.
Part-pensioners may be able to earn more from casual work without reducing their payments as quickly.
Updated deeming rates will affect how financial assets are assessed.
Deeming rates determine how Centrelink estimates income from financial assets such as savings accounts, shares, and managed funds. Lower deeming rates apply to smaller asset balances, while higher rates apply once the threshold is exceeded.
Because these rules can be complex, it may be helpful to use government calculators or speak with a qualified financial adviser before making significant financial decisions.
Steps to Ensure You Receive the Correct Payment
There are several simple steps pensioners can take to make sure they receive the correct payment after the March 2026 update.
Log in to your myGov account linked to Centrelink.
Ensure your income and asset details are up to date.
Review your household budget once the increase begins.
Report casual work or investment income accurately.
Some pensioners may also qualify for additional assistance such as state-based concessions or rent support programs.
It is also important to watch for scams claiming they can increase Centrelink payments for a fee. Always rely on official government sources for accurate information.
FAQs
Q1 When do the new Age Pension rates begin?
The updated Age Pension rates take effect from 20 March 2026 and will appear in the first full payment cycle after that date.
Q2 Will all pensioners receive the full increase?
No. Only those receiving the maximum pension rate will receive the full increase. Part-rate pensioners may receive a smaller increase depending on their income and assets.
Q3 Will other Centrelink payments also increase?
Yes. Payments such as the Disability Support Pension, Carer Payment, JobSeeker, and Commonwealth Rent Assistance may also increase depending on eligibility.
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