Australia Raises Pension Payments and Deeming Rates From Sept. 20

Australia increased maximum pension payments on 20 September 2026 while also lifting the deeming rates used to assess income from financial assets for social security purposes. The two changes took effect on the same day, but they can work in different directions for some recipients: indexation raises the maximum pension available, while higher deemed income can reduce a means-tested payment for people with enough financial assets.

The maximum pension rate for a single recipient rose by A$36.80 per fortnight to A$1,237.70. For a pensioner couple, the combined maximum increased by A$55.60 to A$1,866.00 per fortnight, or A$933.00 each. The same common pension-rate structure applies to Age Pension, Carer Payment and Disability Support Pension recipients who fall within the relevant adult-rate rules.

The Department of Social Services said the September indexation affects a wider range of social security rates, thresholds and limits, and estimated that more than 5.3 million Australians would receive higher payments or benefit from indexed settings. Its 20 August announcement also confirmed that the government accepted the Australian Government Actuary’s recommendation to raise deeming rates from 20 September.

Maximum pension rates rise after September indexation

For Age Pension recipients, the new A$1,237.70 single maximum consists of a maximum basic rate of A$1,135.40, a maximum Pension Supplement of A$88.20 and an Energy Supplement of A$14.10. For couples, each person’s maximum is A$933.00, made up of an A$855.90 basic rate, A$66.50 maximum Pension Supplement and A$10.60 Energy Supplement.

Immediately before the September change, the common maximum pension rate was A$1,200.90 a fortnight for a single person and A$905.20 for each member of a couple, or A$1,810.40 combined. The new rates therefore deliver the A$36.80 single increase and A$55.60 combined-couple increase announced by the government.

These are maximum rates rather than guaranteed increases for every pensioner. Services Australia applies income and assets tests to Age Pension and other means-tested payments, so a recipient’s actual fortnightly amount can be lower. People on a part rate may see a different net change depending on their income, assets and which test determines their payment.

Services Australia says recipients do not need to apply for the indexed increase. Updated amounts are applied through the payment system, and recipients can check their next payment in their Centrelink online account or the Express Plus Centrelink app. Pension rates are routinely adjusted on 20 March and 20 September, with the actual indexed amounts depending on the relevant statutory and economic measures.

Deeming rates move to 1.75% and 3.75%

The second change affects the way the social security system calculates income from financial assets. From 20 September, the lower deeming rate is 1.75% on financial assets up to A$66,800 for a single person and up to A$110,600 for a pensioner couple combined. Financial assets above those thresholds are deemed to earn 3.75%.

Before the change, the rates were 1.25% and 3.25%. The thresholds had already risen on 1 July 2026 to A$66,800 for singles and A$110,600 for pensioner couples, so the September move changes the assumed rate of return rather than those pensioner thresholds. It is the second deeming-rate increase in 2026, following the move to 1.25% and 3.25% on 20 March.

Services Australia says the new deeming rates are applied automatically and that recipients do not need to take action. Deemed income is included in the income test and can change the amount a person receives.

Deeming does not attempt to track the actual interest, dividends or capital growth earned by every investment. Instead, the government applies set rates to the value of relevant financial assets. The rules cover financial investments such as bank and credit union accounts, term deposits, managed investments, loans and debentures, listed shares and securities. Certain account-based income streams are also covered.

If an investment earns more than the deeming rate, the extra return generally is not counted as additional income for the social security income test. If it earns less, the deemed amount is still used unless a specific exemption applies. That design makes the assessed income more predictable, but a rise in deeming rates increases the income attributed to the same pool of financial assets.

Higher deeming can offset part of the pension increase for some recipients

The practical effect depends on the recipient’s circumstances. Someone receiving the full pension whose payment remains below the relevant income-test limits may still receive the full indexed increase. Deeming can matter more for part-rate pensioners whose financial assets contribute enough assessed income to affect their payment under the income test.

For those recipients, the higher maximum pension rate and the higher deeming rates need to be considered together. A 0.5 percentage-point rise in both deeming bands means the system assumes more annual income from the same level of assessable financial assets than it did before 20 September. That can reduce the amount payable under the income test, even though the headline maximum pension rate has increased.

The effect is not identical for every pensioner because Services Australia compares the applicable income and assets tests and uses the result required under the rules. A person whose pension is already being limited by the assets test may not see a direct change from deeming, while another recipient with a similar asset balance could be affected if the income test is the binding test. Other income, relationship status and the composition of financial assets can also change the result.

The September changes therefore do not amount to a uniform A$36.80 or A$55.60 gain for every recipient. They raise the maximum pension rates at the same time as the government increases the assumed income generated by financial investments. Recipients whose payment is means-tested can check their updated Centrelink amount once the new settings are reflected in their account, while the next routine pension indexation point is 20 March 2027.