Rising inflation is certain to see an increase in the Aged Pension on the above date.
The current fortnightly pension for singles is $1,079.70 and couples combined $1,627.80. The pension rate changes on 20 March and 20 September annually.
Based on published CPI figures, the general consensus is the full rate pension will increase by approximately $22.20 per fortnight for a single pensioner and $33.40 per fortnight for a couple combined on 20 March 2026.
However, under the income test, deeming rates will be adjusted, and this may affect your pension.
Deeming is a set of rules used to determine the income your financial assets create. It assumes these assets earn a set rate of income, no matter what they really earn.
With the government deciding to update the deeming rates, it will affect someone’s pension payment if you have:
- savings accounts and term deposits;
- managed investments, loans and debentures;
- listed shares and securities;
- some income streams; and
- some gifts you make.
The higher deeming rates increase, the less that your pension will increase. Beyond a certain point, your pension payment could in fact reduce.
For example, a single homeowning pensioner with $300,000 of assets outside the principal place of residence would experience an increase in their pension of approximately $11 per fortnight if deeming rates were increased by 0.25% – compared to a $22 per fortnight increase if deeming rates aren’t lifted. If deeming rates increased by 0.5%, they would receive a small decrease in the pension of $1 per fortnight.
A homeowning couple with $500,000 of assets outside the family home would receive an increase of $16 per fortnight if deeming rates increased by 0.5%, compared to $33 per fortnight with no deeming rate increase. They would receive a decrease of $2 per fortnight if deeming rates increased by 0.5%.
Centrelink will provide you with the actual impact when they recalculate pensions on 20 March.
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