In July 2025, the Australian Government will roll out a 2.4% indexation increase across social security payments and means‑test thresholds.
This round of cost‑of‑living adjustments ensures that Age Pension, JobSeeker, Parenting, Disability, and Carer payments keep pace with rising prices.
What Is Indexation for Social Security?
Indexation ties payment rates and eligibility thresholds to inflation—measured by the Consumer Price Index (CPI)—to help maintain the real value of government support.
In March 2025, Australia’s CPI rose 2.4% year-on-year. This latest indexation also rules, adjusting payments and limits every March and July.
What Payments Are Increasing by 2.4%?
Effective 1 July 2025, the following will increase
- Age Pension base rates and supplements
- JobSeeker, Parenting Payment, Disability Support, Carer Payment, Youth Allowance, Austudy, and Abstudy
- Family Tax Benefit A & B
- Paid Parental Leave income limits
These rises reflect the CPI increase.
How Much Will You Actually Get?
Age Pension Increase
- Singles: up by $4.60 fortnightly (to $1,149.00)
- Couples: each up by $3.50 (to $866.10 each)
Asset & Income Thresholds
- Single homeowners’ asset cut-off rises by $7,500 (now $321,500)
- Couple homeowners’ asset cut-off rises similarly to $481,500
- JobSeeker earnings limits increase: singles to $2,516/fortnight, couples to $3,844
Timeline of Adjustments
| Effective Date | What’s Adjusted |
|---|---|
| 11 Mar 2025 | CPI published (+2.4%) |
| 1 July 2025 | Payment and threshold indexation applies |
| Sept & Mar 2026 | Next scheduled indexation rounds |
Summary Table of Common Payments
| Payment Type | % Increase | Benefit |
|---|---|---|
| Age Pension & Supplements | 2.4% | +$4.60/service fortnight (single) |
| JobSeeker, Parenting, Carer… | 2.4% | Slight rise across all payments |
| Asset/Income Tests Thresholds | 2.4% | Higher eligibility limits |
| Medicare Levy Exemption Limit | 2.4% | Lifted exemption bands |
Why This Matters
- Protects real income for pensioners and vulnerable groups
- Keeps thresholds aligned with inflation, preventing undue eligibility loss
- Supports financially stressed households amid rising housing, healthcare, and energy costs
What You Should Do
- Check your Centrelink or Services Australia statements after 1 July
- No action required—payments and thresholds update automatically
- Monitor myGov or Centrelink app for notifications
- Review financial planning if you’re near asset/income thresholds
Australia’s 2.4% cost‑of‑living indexation from 1 July 2025 ensures that social security payments and thresholds rise in line with inflation.
With tangible boosts to pensions and benefits—and higher eligibility limits—recipients are encouraged to check their payment updates and stay informed to maximize their support.
Frequently Asked Questions
1. Do I need to apply to receive the increase?
No – payments and thresholds will be updated automatically from 1 July 2025.
2. Will this affect how much Centrelink I receive?
Yes – while your payment increases directly, income/asset thresholds also rise, possibly preserving your full entitlement.
3. How often are payments indexed?
Payments and thresholds are usually reviewed twice yearly (March and July), following CPI updates.