This biannual indexation adjustment will help more than 5 million Australians facing the burden of the persistent rise in the cost of living, including more than 2.6 million aged pensioners who will receive the highest pension in recent history.
The payment boost in September 2025 continues to reflect the Australian Government’s commitment to social security payments as they try to manage the impact of inflation and wage growth. As noted by Social Services Minister Plibersek, the government will provide indexation to manage Australian’s basic grocery and healthcare expenses, thus ensuring that the social support system remains fair in the face of changing economic realities.
Expanded Benefits Across Multiple Payment Categories
The September 2025 indexation is not limited to age pensions, as some other Centrelink payment categories will also be affected, which is vital for vulnerable Australians. Recipients of the JobSeeker payment who are 22 years old or older will now receive an increase of $12.50, bringing their total to $793.60. Also, ABSTUDY rates will increase to $793.60 per fortnight for eligible individuals aged 22 and older who are living independently or at their parents’/guardians’ home.
Along with other segments of the population, individuals receiving the Disability Support Pension payment, who are often financially burdened because of their condition, will now be able to access the payment increase. The government is already showing a willingness to provide more support to this population, as demonstrated with the March 2025 adjustment, which provided single DSP recipients a payment increase from $1,144.40 to $1,149.00. September adjustments will further this strategy, assuring financially vulnerable disabled Australians receive sufficient support.
Cost of Living Relief and Special Bonus Payments
In addition to the usual indexation increases, the government has announced additional cost of living payments and special bonuses for September of 2025. Eligible recipients from Centrelink will get one-off cost of living payments whereby single recipients will get $750 and couples will get $600 each. These payments will not be taxed and will be made available on September 12, 2025. This will be made available instantly and will not affect any Centrelink payments currently being received.