Major shifts are coming to Australia’s social security landscape this month. Starting March 20, 2026, millions of retirees and individuals with disabilities will see a significant adjustment to their fortnightly bank balances. While indexation is bringing a much-needed boost to keep up with inflation, a simultaneous hike in “deeming rates” means some part-pensioners might actually see their payments squeezed.
The New 2026 Payment Rates
Thanks to the latest round of biannual indexation, the maximum base rates for the Age Pension and the Disability Support Pension (DSP) are rising. For those on the full rate, this increase is designed to act as a buffer against the rising costs of groceries, utilities, and healthcare.
- Single Recipients: The total fortnightly payment (including supplements) rises by $22.20, bringing the new maximum to $1,200.90.
- Couples (Combined): Eligible couples will see an increase of $33.40 per fortnight, taking their total combined payment to $1,810.40.
The “Deeming Rate” Sting
While the headline increase sounds like a win, the government has officially accepted a recommendation to lift deeming rates for the first time in years. Deeming is the set of rules Centrelink uses to “assume” how much income you earn from your financial assets (like savings and shares), regardless of what they actually pay.
The lower deeming rate is jumping to 1.25%, while the upper rate—applied to larger balances—is rising to 3.25%.
- For a single homeowner with significant savings, this assumed “extra income” could reduce their part-pension by hundreds of dollars a year.
- This change effectively offsets some of the indexation gains for those with substantial financial assets outside of their family home.
Updated Asset and Income Thresholds
To ensure the system remains fair, the “cut-off” points where your pension reduces to zero have also been pushed higher. This is a positive move for those who were previously just over the limit to qualify for a part-pension.
| Status | Full Pension Asset Limit (Homeowner) | Pension Cut-off Point (Homeowner) |
| Single | $321,500 | $722,000 |
| Couple (Combined) | $481,500 | $1,085,000 |
If your assets fall between these two numbers, you typically receive a part-pension. The 2026 update means you can now own slightly more in assets before your payment is cancelled entirely.
The March 2026 changes are a double-edged sword. While the $1,200.90 single rate provides a higher floor for the most vulnerable, the end of the deeming rate freeze marks a new era of stricter means-testing. Most full-rate pensioners will see the extra cash hit their accounts automatically from late March, but part-pensioners should double-check their “deemed income” to see how it might impact their specific rate.
FAQs
When do these changes take effect?
The new payment rates and deeming rules officially commence on March 20, 2026.
Do I need to contact Centrelink to get the increase?
No. If you are already receiving the Age Pension or DSP, the indexation increase will be applied to your account automatically.
Why is my pension decreasing despite the indexation?
If you have significant savings or investments, the increase in deeming rates might lead Centrelink to assume you are earning more private income, which can reduce your government payment.
Is the family home included in the asset test?
In most cases, your principal place of residence is exempt from the assets test, which is why homeowner limits are much lower than non-homeowner limits.
Last updated: 18 Mar 2026 (UK Time)
