The Australian government has confirmed the latest indexation update to the Centrelink Age Pension, effective from March 20, 2026. While some headlines refer to an “April 2026” change due to payment cycles landing in early April, the official adjustment starts March 20. This brings higher maximum rates, updated income and asset thresholds, and a rise in deeming rates. Over 2.5 million pensioners will see changes, with full-rate recipients getting a direct boost to help with rising costs.
Indexation happens twice a year—in March and September—based on CPI, the Pensioner and Beneficiary Living Cost Index, and average earnings. The March 2026 update delivers a moderate increase, though some reports note it trails recent inflation levels.
New Maximum Payment Rates
Starting March 20, 2026, full Age Pension payments rise by $22.20 per fortnight for singles and $16.70 per person for couples.
- Single: $1,200.90 per fortnight (up from $1,178.70).
- Couple (each): $905.20 per fortnight (up from $888.50).
- Couple combined: $1,810.40 per fortnight.
These figures include the maximum basic rate, Pension Supplement, and Energy Supplement. Full pensioners receive the full extra amount in their regular Centrelink payments from the new date onward.
Income Test Changes and Eligibility Limits
The income test allows a certain amount of earnings before your pension reduces. Thresholds have increased slightly with indexation.
Key free areas (no reduction):
- Singles: Up to $218 per fortnight.
- Couples: Up to $380 combined per fortnight.
Above these, the taper is 50 cents per dollar for singles and 25 cents per dollar per partner for couples.
Cut-off points (where pension reaches zero) are higher:
- Single: $2,619.80 per fortnight (up by $44.40).
- Couple combined: $4,000.80 per fortnight (up by $66.80).
This means some pensioners with part-time work, investments, or other income sources may now receive more or remain eligible longer.
Asset Test Changes and Eligibility Limits
The assets test assesses savings, super, investments, and non-home property. Full and part-pension thresholds rise modestly.
Full pension asset limits (approximate, no reduction):
- Single homeowner: Around $321,500.
- Couple homeowners combined: Around $481,500.
(Non-homeowners qualify under higher figures.)
Part-pension cut-offs (eligibility ends):
- Single homeowner: $722,000 (up by about $7,500).
- Couple homeowners combined: $1,085,000 (up by about $11,000).
Reductions apply above full-pension thresholds: $3 per fortnight per $1,000 over for singles, or $1.50 each for couples.
Deeming rates, which assume income from financial assets, have increased:
- Lower rate: 1.25% on the first $64,200 (single) or $106,200 (couple combined).
- Higher rate: 3.25% on amounts above.
This adjustment can lower payments for part-pensioners with larger financial holdings, partially offsetting the base rate rise.
Who Will Benefit Most?
Full pensioners see a clean increase with no offsets. Part-pensioners experience mixed effects—higher thresholds help those close to limits, but deeming changes may reduce gains for those with significant savings.
- Modest assets often mean a net positive from the payment boost.
- Higher financial assets? The deeming rise could trim your rate, so review your situation.
Services Australia handles most adjustments automatically no need to contact them unless your details have changed.
The March 2026 Age Pension update, often called the “April hike” in casual talk due to when payments hit accounts, delivers real support through higher rates up to $1,200.90 fortnightly for singles and expanded limits. While the increase is welcome for covering everyday expenses, the deeming tweak reminds retirees to check how savings impact eligibility. These regular adjustments keep the pension aligned with living costs. Log into myGov or contact Services Australia if you want to confirm your personal rate.
FAQs
Why is it called an April 2026 hike if it starts March 20?
The rate change applies from March 20, but many pensioners receive payments in early April, leading to the “April” reference in some media.
How much extra does a single full pensioner get?
$22.20 per fortnight, taking the maximum to $1,200.90.
Do I have to do anything to get the increase?
No—Services Australia automatically updates eligible payments.
Will part-pensioners always receive more money?
Usually yes from the base increase and thresholds, but higher deeming rates may reduce payments for those with substantial financial assets.
When is the next pension change?
The following indexation is expected around September 20, 2026.
