Significant changes have officially hit Australia’s social security system this week. As of March 20, 2026, millions of retirees and individuals living with disabilities are seeing a major shift in their fortnightly payments. While the standard indexation brings a welcome boost to help combat the rising cost of living, a simultaneous move in “deeming rates” and asset thresholds means that for many, the “full impact” is a complex balancing act of gains and offsets.
The New 2026 Payment Rates
Twice a year, Centrelink adjusts its payment rates to ensure they keep pace with inflation and wage growth. For those on the full rate of the Age Pension or Disability Support Pension (DSP), this March update provides a noticeable increase in disposable income.
- Single Recipients: The maximum fortnightly payment (including the pension and energy supplements) has risen by $22.20, bringing the new total 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” Hike
The most controversial part of the March 2026 update is the second consecutive increase to deeming rates. Deeming is the set of rules Centrelink uses to “assume” how much income you earn from your financial assets—such as bank accounts, shares, and superannuation—regardless of the actual interest you receive.
As the government moves to align these rates with current market conditions, the new thresholds are:
- Lower Deeming Rate: Rising from 0.75% to 1.25% for the first $64,200 (singles) or $106,200 (couples) of assets.
- Upper Deeming Rate: Jumping from 2.75% to 3.25% for any assets held above those amounts.
For part-pensioners with significant savings, this means the government now assumes you are “earning” more private income, which can lead to a reduction in your pension payment that may offset the indexation boost.
Updated Asset and Income Thresholds
To provide some relief, the “cut-off” points where your pension reduces have also been pushed higher. This is vital for those who were previously on the verge of losing their payments entirely.
| Status | Full Pension Asset Limit (Homeowner) | Part Pension Cut-off Point (Homeowner) |
| Single | $321,500 | $722,000 |
| Couple (Combined) | $481,500 | $1,085,000 |
If your assets fall below the “Full Pension” limit, you are generally eligible for the maximum rate. If they exceed the “Part Pension” cut-off, your payment will cancel entirely.
The March 2026 rule changes are a double-edged sword. While the indexation to $1,200.90 for singles is a win for those with minimal assets, the spike in deeming rates to 3.25% serves as a reminder that the government is tightening its belts on means-testing. Most pensioners will see these changes reflected in their accounts automatically, but it is more important than ever to ensure your asset values are accurately reported to avoid any unexpected payment drops.
Last updated: 18 Mar 2026 (UK Time)
