Millions of Australians will see a welcome increase in their Centrelink payments in 2025 due to the government’s regular indexation adjustments. These changes help payments keep up with inflation, ensuring recipients of the Age Pension, JobSeeker Payment, Parenting Payment, and more can better manage the rising cost of living.
If you’re wondering how this affects you, this guide breaks down everything from payment increases to eligibility and money-saving tips.
Indexation
Indexation is the government’s way of adjusting social security payments to match inflation. It’s based on the Consumer Price Index (CPI) and happens twice a year—March and September—to ensure payments stay in line with the cost of essential goods and services.
Who Benefits?
The 2025 Centrelink indexation boost will help millions of Australians, including:
1. Age Pension Recipients
- Singles: Increase of $28.10 per fortnight
- Couples (combined): Increase of $42.40 per fortnight
This adjustment helps retirees manage housing, groceries, and medical expenses more effectively.
2. Youth Allowance Recipients
- JobSeeker (Single, no children): Increase of $15.30 per fortnight
- Youth Allowance (Living away from home): Increase of $24.30 per fortnight
This boost will help unemployed individuals and young Australians facing higher living costs.
3. Parenting Payment
- Parenting Payment (Single): Increase of $19.80 per fortnight
- Commonwealth Rent Assistance (Single, max rate): Increase of $23.00 per fortnight
These increases support single parents and renters struggling with rising housing costs.
Updated Payment Rates
Here’s a breakdown of the new Centrelink payment amounts after indexation in 2025:
| Payment Type | New Fortnightly Amount | Previous Amount | Increase |
|---|---|---|---|
| Age Pension (Single) | $1,144.40 | $1,116.30 | $28.10 |
| Age Pension (Couple, combined) | $1,725.20 | $1,682.80 | $42.40 |
| JobSeeker (Single, no children) | $786.80 | $771.50 | $15.30 |
| JobSeeker (Single, with children) | $833.20 | $816.90 | $16.30 |
| Parenting Payment (Single) | $1,026.30 | $1,006.50 | $19.80 |
| Youth Allowance (Living at home) | $477.10 | $459.80 | $17.30 |
| Youth Allowance (Living away from home) | $670.30 | $646.00 | $24.30 |
| Commonwealth Rent Assistance (Single, max rate) | Varies | – | $23.00 |
Other Key Adjustments
- Disability Support Pension (Single): $1,144.40 per fortnight
- Carer Payment (Single): $1,144.40 per fortnight
- Austudy & Youth Allowance: Increased similar to JobSeeker and Parenting Payment
How to Make the Most of the Increase
While this indexation boost is helpful, managing your money wisely is still important. Here are some practical tips:
1. Keep Your Information Updated
Ensure your details with Centrelink are accurate so your payments aren’t delayed or underpaid.
2. Budget Smartly
Use free tools like the Moneysmart Budget Planner to prioritize essentials like rent, groceries, and bills.
3. Extra Benefits
Check if you qualify for additional financial support, such as:
- Energy Supplements (helps with power bills)
- Concession Cards (discounts on healthcare and public transport)
- Medicare Bulk Billing Benefits (lower medical costs)
- Education Assistance Payments (for families with school-age children)
4. Seek Free Financial Advice
Services like the National Debt Helpline offer free financial guidance on managing expenses.
5. Use Centrelink’s Digital Tools
- The myGov app lets you track payments and update details.
- Centrelink Express Plus helps manage your benefits on the go.
The 2025 Centrelink indexation increase is a welcome relief for many Australians. By staying informed and budgeting wisely, you can make the most of your boosted payments and improve your financial stability.
FAQs
Who qualifies for the Centrelink increase?
Anyone receiving Age Pension, JobSeeker, Parenting Payment, and more.
How much is the Age Pension increasing?
Singles get $28.10 more; couples get $42.40 more combined.
When does the Centrelink indexation take effect?
March and September 2025, based on CPI adjustments.
Will rent assistance also increase?
Yes, singles get $23 more; families get $27 more.
How can I check my new payment amount?
Log in to myGov or use Centrelink Express Plus app.
