On 20 September 2026, Age Pension payments rose as part of the regular twice-yearly indexation. If you receive the full pension, that is simple good news, and it arrives automatically.
If you receive a part pension and have money in the bank, in super or in investments, the picture is a little more mixed. On the same day, the government also raised the deeming rates Centrelink uses to work out income from your savings. For some people, that second change quietly takes back part of the first.
Here is what changed, and how to tell whether it affects you.
What changed on 20 September 2026
| Payment or setting | From 20 September 2026 | Change |
|---|---|---|
| Age Pension, single (maximum) | $1,237.70 a fortnight | Up $36.80 |
| Age Pension, couple (maximum) | $933.00 each a fortnight ($1,866.00 combined) | Up $27.80 each |
| Rent Assistance, single (maximum) | $223.80 a fortnight | Up $4.40 |
| Rent Assistance, couple (maximum) | $211.00 a fortnight | Up $4.20 |
| Deeming rate, lower band | 1.75% on financial assets up to $66,800 (single) or $110,600 (couple combined) | Up from 1.25% |
| Deeming rate, upper band | 3.75% on financial assets above those amounts | Up from 3.25% |
The maximum pension rates include the Pension Supplement and Energy Supplement. The asset limits at which a part pension stops have also risen, to $745,750 for a single homeowner and $1,121,000 for a homeowner couple (combined), and to $1,012,750 and $1,388,000 for people who don’t own their home.
You don’t need to apply for the increase. Services Australia adjusts payments automatically.
What is deeming, and why does it matter?
Centrelink doesn’t look at what your savings actually earn. Instead, it assumes, or “deems”, that your financial assets earn a set rate of income, whatever your bank or fund actually pays. Financial assets include bank accounts, term deposits, shares, managed funds and account-based pensions.
That deemed income is added to any other income you have, such as work income, and assessed under the income test. From 1 July 2026, a single pensioner can have up to $226 a fortnight in income, and a couple $396 a fortnight combined, before the pension starts to reduce. Above that, the pension reduces by 50 cents for every dollar of income.
So when deeming rates rise, Centrelink assumes your savings earn more. If that pushes more of your income above the free area, your pension reduces, even though nothing about your actual savings has changed.
How the two changes can work against each other
An illustrative example. Margaret is single, owns her home and has $250,000 in financial assets across a bank account and an account-based pension. She has no other income, and her pension is worked out under the income test.
| Before 20 September | From 20 September | |
|---|---|---|
| Deemed income a year | $6,789 | $8,039 |
| Deemed income a fortnight | $261.12 | $309.19 |
| Reduction under the income test | $17.56 a fortnight | $41.60 a fortnight |
| Maximum pension rate | $1,200.90 a fortnight | $1,237.70 a fortnight |
| Margaret’s pension | $1,183.34 a fortnight | $1,196.10 a fortnight |
Margaret’s pension still goes up, but by $12.76 a fortnight, not the headline $36.80. Over a year that is about $332, not about $957.
This example is an illustration only. It is not based on a real client. It assumes Margaret is assessed under the income test rather than the assets test, has no other income, and uses the rates in place immediately before and after 20 September 2026. Your own result will depend on your circumstances.
The more you hold in financial assets, the bigger the deeming effect tends to be. At higher asset levels, though, the assets test often decides the pension instead, and deeming changes don’t affect an assets-tested pension.
“Most people see the headline increase and assume their payment has gone up by the full amount. If you have savings or investments, it’s worth checking, because the deeming change can take some of it back.”
Who is most likely to notice
- Part pensioners assessed under the income test who have meaningful savings or investments. This is the group where the deeming rise matters most.
- Full pensioners with modest savings. If your deemed income stays under the free area, the deeming change is unlikely to affect your payment, and you receive the full increase.
- Pensioners assessed under the assets test. The deeming change doesn’t alter your rate, and the higher asset limits may help slightly.
- Renters. Rent Assistance has risen slightly, which helps if you rent privately and receive it.
Things worth checking now
Changes like these are a good prompt to make sure your details and your plan are still in step. Some of the things people commonly look at:
- Whether Centrelink has the right values for your assets. Deeming applies to what Centrelink has on record, so out-of-date balances can work against you. Our guide to keeping Centrelink updated covers what to report and when.
- Which test applies to you. Knowing whether the income test or the assets test sets your pension tells you whether deeming changes matter for you at all. If you are new to this, start with our Age Pension explainer.
- How your assets are held. Some assets are treated differently by Centrelink. The family home is exempt, for example, and so are funeral bonds up to a limit. Our funeral bonds guide explains how that works.
- How much you draw from your account-based pension. A higher pension can, for some people, mean drawing a little less from their own savings, which helps those savings last longer.
- What comes next. If aged care is on the horizon for you or a parent, the rules interact with the pension in ways worth understanding early. See our aged care advice page.
Talk it through with us
If you would like to understand how the September changes affect your own pension, or whether anything in your plan should change, our advisers are happy to help. Call us on (02) 4941 1888 or book an appointment online. If you are already a client, raise it at your next review. More on how we help retirees is on our Retire in Style page.
Book an initial chat with the Insight Wealth Planning team →
Frequently asked questions
How much is the Age Pension from 20 September 2026?
The maximum rate is $1,237.70 a fortnight for a single person and $933.00 each for a couple ($1,866.00 combined), including the Pension Supplement and Energy Supplement.
Do I need to do anything to get the increase?
No. The increase is applied automatically by Services Australia.
What are the deeming rates now?
From 20 September 2026, 1.75% applies to financial assets up to $66,800 for singles or $110,600 for couples combined, and 3.75% applies to amounts above that.
Will the deeming rise reduce my pension?
It depends on your circumstances. If your pension is set by the income test and your deemed income is above the free area, part of the increase may be offset. If your pension is set by the assets test, or your deemed income stays under the free area, the deeming change is unlikely to affect your payment.
When is the Age Pension next indexed?
The Age Pension is indexed twice a year, in March and September.
General advice warning: this article is general information only and does not take into account your personal objectives, financial situation or needs. Rates and thresholds are those published by Services Australia and the Department of Social Services for 20 September 2026 and may change. Please consider whether the information is appropriate for you and seek personal financial advice before acting. Insight Wealth Planning is a Corporate Authorised Representative of GPS Wealth Ltd, AFSL 254544.