Under federal law, increases are common, but the size of the adjustment and changes to income and asset thresholds could make a big difference in 2026. Australians should know about the changes to the Centrelink pension that are coming up.
What Will Be Different in March 2026?
In March and September, Australia’s Age Pension and other income support payments are adjusted to keep up with inflation. The review in March 2026 will look at payment rates again based on economic data from the last six months.
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Important areas that might change are:
- Base rates for singles and couples on the Age Pension
- Amounts for the Pension Supplement and Energy Supplement
- Limits on the income test that decide how much you can earn before payments go down
- Limits on the asset test for homeowners and non-homeowners
- Maximum rates for Rent Assistance
- Deeming thresholds used to figure out income from financial assets
The Consumer Price Index (CPI) or the Pensioner and Beneficiary Living Cost Index (PBLCI) is used to figure out indexation. To keep a minimum percentage of wages, payments are also compared to Male Total Average Weekly Earnings (MTAWE).
This means that pensioners are safe from sudden spikes in inflation, but the amount of money they get may change based on the state of the economy as a whole.
Why the March 2026 Update Is Important
In the last few years, the cost of living has been a major problem all over Australia. Inflation has slowed down since its last peak, but prices for basic goods like groceries, utilities, insurance, and medical services are still much higher than they were before 2022.
For pensioners who mostly get their money from Centrelink, even small changes can have a big impact.
As of late 2025, the highest Age Pension rates (including extras) were about:
- $1,116 every two weeks for singles
- $1,682 every two weeks for a couple (combined)
A small increase of $20 every two weeks adds up to $520 a year, which is enough to cover rising electricity bills or prescription costs for many families.
But changes to pensions aren’t just about getting more money. Changes to income and asset limits can also affect eligibility, which could mean that people get more or less benefits, depending on their situation.
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| Category | September 2025 Rate (Approx.) | Potential March 2026 Increase | Estimated New Range |
|---|---|---|---|
| Single Pensioner | $1,116 / fortnight | $15–$25 | $1,131–$1,141 |
| Couple (combined) | $1,682 / fortnight | $20–$40 | $1,702–$1,722 |
| Pension Supplement (Single) | ~$80 | Small indexed rise | Slight increase |
| Rent Assistance (Max Single) | ~$184 | Indexed adjustment | Modest increase |
| Asset Test (Homeowner Single) | ~$301,750 | Threshold increase | Slight rise |
How March 2026 Indexation Will Affect Payments
The March update usually affects more than just the Age Pension.
- Age Pension
- Disability Support Pension
- Carer Payment
- Commonwealth Rent Assistance
- Pension Supplement
- Some income thresholds for concession cards
This means that changes may also affect who can get the Commonwealth Seniors Health Card and other benefits that are based on income limits.
What You Should Know
- Keep an eye on your myGov account
- Check your income reporting
- Review the values of your assets
- Look for updates on rent assistance
- No application is needed
- Plan for changes to your budget
How Asset and Income Tests Might Change
Many Australians don’t realise that changes in the threshold can affect payments.
Test of Income
Under the current rules, pensioners can make money up to a certain amount before their payments go down. Some retirees may be able to make a little more money before their pension is affected if the income-free area grows in March.
Asset Test
Asset thresholds decide whether someone is fully or partially eligible for a pension. If the thresholds go up, more Australians might be able to get part payments or see a small increase in the amount they are already entitled to.
For homeowners, the threshold is different from that of non-homeowners because of the value of their homes.
Broader Cost-of-Living Context in 2026
Australia is still figuring out how to deal with economic changes after the pandemic. Even though inflation has gone down from its previous highs, core costs are still high.
In 2026, government budgets should strike a balance between being fiscally responsible and continuing to help vulnerable groups, such as pensioners. The biannual indexation process is still one of the most important ways to make automatic cost-of-living adjustments without having to pass new laws.
