A NUMBER of changes to social security payments, rates, and limits will commence from 20 September 2025.
People receiving the full single rate of Age Pension, Disability Support Pension or Carer Payment will see a $29.70 boost to their fortnightly payment.
People receiving Commonwealth Rent Assistance, JobSeeker, ABSTUDY (aged 22 and over), and Parenting Payment will also see an increase to their payment.
Some recipients with financial assets, including part-rate pensioners, can expect to see changes to their payments from changes to deeming rates.
Deeming rates are used to calculate income from financial assets and are based on the principle that these assets provide a source of income for recipients.
“Deeming rates were frozen at artificially low levels as an emergency COVID-19 measure and the Albanese Government extended the freeze to help shield age pensioners and other income support recipients while the economy recovered,” the Federal Government said in a statement.
“Social security recipients impacted by deeming rates saved around $1.8 billion as a result.”
From 20 September, a deeming rate of 0.75 percent will apply to financial assets under $64,200 for singles and $106,200 for couples combined.
Assets over this amount will be deemed at a rate of 2.75 percent.
Federal Member for Lyne Alison Penfold said the change to deeming rates comes with little warning and leaves many older Australians in the dark.
“A lot of pensioners are just trying to keep up with the basics – power bills, groceries, rent,” Ms Penfold said.
“Changing the rules with hardly any notice makes it even harder for people to budget and plan.
“These Australians aren’t a line item in the budget – they’re real people who’ve worked hard, raised families, and supported their communities,” she said.
“They deserve better.”
Ms Penfold said the policy shift ignores the reality for people on fixed incomes.
“Just because inflation is easing on paper doesn’t mean life is getting cheaper,” she said.
“The cost of food, rent and essential services is still climbing – and this change makes it even harder for people to get by.”
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