Millions of Australian retirees will receive a modest financial boost following the latest Age Pension adjustment confirmed by Centrelink. The revised payment rates took effect from 20 March 2026 and will be reflected in pensioners’ April payment cycles.
Biannual Review Drives Payment Changes
The Age Pension is reviewed twice annually, in March and September, as part of a regular indexation process designed to maintain purchasing power. The latest update incorporates movements in inflation, living costs for pension-dependent households, and wage growth.
Updated Fortnightly Payment Rates
Under the new rates, single pensioners are eligible to receive up to $1,200.90 per fortnight, including base payments and standard supplements. This represents an increase of $22.20.
For couples, each partner may receive up to $905.20 per fortnight, an increase of $16.70 per person. Combined, eligible couples can receive up to $1,810.40 every two weeks.
Actual payments may differ depending on individual income and asset levels.
Indexation Benchmarks Explained
The adjustment is calculated using three primary indicators: the Consumer Price Index (CPI), the Pensioner and Beneficiary Living Cost Index (PBLCI), and Male Total Average Weekly Earnings (MTAWE). Together, these benchmarks ensure pension payments remain aligned with economic conditions and cost-of-living pressures.
Eligibility and Means Test Adjustments
The increase applies to both full and part pension recipients. In addition to higher payment rates, thresholds for income and assets tests have been raised slightly. This may expand eligibility or allow recipients to retain more income or savings before reductions apply.
Deeming rates, which determine assumed income from financial assets, have also been updated. The new rates are set at 1.25 percent for assets up to specified thresholds and 3.25 percent for amounts above.
Current deeming thresholds include:
- Singles: First $64,200 at 1.25 percent
- Couples (combined): First $106,200 at 1.25 percent
- Amounts above these thresholds: 3.25 percent
Next Review Scheduled for September
The updated rates will remain in effect until the next scheduled review in September 2026. Pensioners are encouraged to monitor their accounts or notify Services Australia of any changes in financial circumstances, as these may affect entitlements.
The March 2026 adjustment provides incremental relief for retirees and reflects the government’s continued policy of maintaining pension adequacy through regular, structured updates.