THE HON TANYA PLIBERSEK MP
MINISTER FOR SOCIAL SERVICES

MEDIA RELEASE

Wednesday, 20 August 2025

Changes to social security payments from September 20

A number of changes to social security payments, rates, and limits will commence from 20 September 2025.  

More than 5 million recipients will see more money in their bank account each fortnight, including over 2.6 million Age Pensioners.

People receiving the full single rate of Age Pension, Disability Support Pension or Carer Payment will see a $29.70 boost to their fortnightly payment, making their annual pension now almost $5,000 more since Labor came to Government.

People receiving Commonwealth Rent Assistance, JobSeeker, ABSTUDY (aged 22 and over), and Parenting Payment will also see an increase to their payment. Maximum rates of Commonwealth Rent Assistance have now increased by almost 50% under Labor.

Indexation ensures our social security system remains a safety net that Australians can rely on by keeping payments and limits in line with inflation and the wider economy.

Some recipients with financial assets, including part-rate pensioners, can expect to see changes to their payments from changes to deeming rates. Deeming rates are used to calculate income from financial assets and are based on the principle that these assets provide a source of income for recipients.

Deeming rates were frozen at artificially low levels as an emergency COVID-19 measure and the Albanese Government extended the freeze to help shield age pensioners and other income support recipients while the economy recovered. Social security recipients impacted by deeming saved around $1.8 billion as a result.

As Australians begin to feel the positive impacts of inflation easing, the Government will now gradually return deeming rates to pre-pandemic settings - that is, to reflect rates of return that pensioners and other payment recipients can reasonably access on their investments.

From 20 September, a deeming rate of 0.75% will apply to financial assets under $64,200 for singles and $106,200 for couples combined. Assets over this amount will be deemed at a rate of 2.75%.

Even with these increases, the deeming rates will remain below historical pre-COVID averages.

In line with stakeholder feedback, changes to deeming rates will happen at the same time as the indexation of payments, and increases will be staged. This will produce fairer outcomes by ensuring the rate reflects current economic conditions.

The Australian Government Actuary will take on the role of recommending future deeming rates. They will advise Government on the most appropriate rate, guided by the returns that pensioners and other payment recipients can reasonably access on their investments.  The Government will retain the power to make adjustments, including during exceptional circumstances or events.

The Albanese Labor Government remains committed to easing the cost-of-living pressures, including for older Australians.

Since 2022, we have:

• Saved age pensioners almost $650 million thanks to our cheaper medicines and bulk billing increases.
• Helped an extra 27,000 self-funded retirees get the Commonwealth Seniors Health Card, meaning they can access cheaper medicines and may receive bulk-billed doctor visits.
• Invested an extra $5.6 billion to strengthen aged care services.
• Delivered at least $700 of federal government energy bill relief for age pensioners and other social security payment recipients.

The complete list of payment rates being indexed on 20 September, including income and asset limits, is available on the Department of Social Services website. 

Quotes attributable to the Minister for Social Services, Tanya Plibersek:

“Thanks to indexation, millions of Aussies will receive a boost to their payment to help them cover everyday costs like groceries and healthcare. The government wants to help take the pressure off when it comes to cost of living.

“Social security recipients are also benefitting from tax cuts, cheaper medicines, energy bill relief, cuts to student debt and a whole range of other cost of living measures we’ve delivered since coming into Government.

“The social security system must be grounded in fairness, which is why we adjust supports as the economy changes.

“We’ll continue to make sure the system is there to support those who need it most, ensuring that everyone can make ends meet and no one gets left behind.”

ENDS