Unpacking the “Hidden” Centrelink Changes for 2025
Many Australians are hearing about Centrelink payment increases, but some important changes are flying under the radar. We break down what’s really happening in 2025, including the adjustments that might not be in the headlines.
The Headline News: Indexation Increases Payments
The most talked-about change is the standard indexation of most Centrelink payments, which took effect from 20 September 2025. Due to inflation, the base rates for several key benefits have increased to help with the rising cost of living.
This means if you receive payments like the Age Pension, Disability Support Pension (DSP), or Carer Payment, you will have seen a rise in your fortnightly amount. For example, the maximum single Age Pension rose by approximately $29.70 per fortnight.
These increases are automatic for eligible recipients. You do not need to apply for them.
Key Takeaway:
Most base payment rates went up automatically from 20 September 2025 to keep pace with inflation.
The “Hidden” Change: The Impact of Deeming Rates
This is the change that many are overlooking. Alongside the pension indexation, the government also increased the **deeming rates** from 20 September 2025. Deeming is a set of rules used by Centrelink to estimate the income you earn from your financial assets (like savings accounts, term deposits, and shares).
- The lower deeming rate increased from 0.25% to 0.75%.
- The upper deeming rate increased from 2.25% to 2.75%.
How Does This Affect You?
Even if your investments are earning less than these rates, Centrelink will use these new, higher rates to calculate your income. This can have a significant impact, especially for part-pensioners.
- For Full Pensioners: If your assets are well below the threshold, this change might not affect you.
- For Part-Pensioners: This is crucial. The higher deemed income could reduce your payment amount. For some, the increase from indexation may be partially or completely offset by the reduction caused by the new deeming rates. In some cases, it could even result in a lower overall payment than before.
This adjustment is considered “hidden” because it’s a complex rule change that isn’t as widely publicized as the base rate increase, but it can have a direct and negative effect on the payments of hundreds of thousands of Australians.
Debunking the Myths: Are There One-Off Bonus Payments?
There has been a lot of chatter online about one-off bonus payments like a “$2100 Centrelink Payout” or extra “$250 and $750 Payments” for 2025. It is essential to be cautious about this information.
Important Clarification:
As of September 2025, there are **no official, confirmed one-off bonus payments** like a $2100 payout scheduled. These were often related to past, specific economic support measures (like during COVID-19) and are not a recurring feature of the Centrelink system.
Always rely on the official Services Australia website for accurate information on your payments and eligibility. Do not trust unverified news or social media posts promising extra money.
Summary: What You Need to Know
- Base Rates Are Up: Most pensions and allowances increased from 20 September 2025 due to standard indexation.
- Deeming Rates Are Also Up: This “hidden” change could reduce your payment if you are a part-pensioner with financial assets.
- No Confirmed Bonuses: Be wary of misinformation. There are no widespread, one-off bonus payments scheduled for 2025.
It’s more important than ever to check your MyGov account and review your Centrelink statements to understand how these combined changes have specifically affected your payments.