Millions of Australians receiving the Age Pension, Disability Support Pension (DSP), and JobSeeker are waiting for the March 2026 indexation. Based on the latest CPI trends, we project a moderate increase to combat rising living costs. Here is your complete guide to the new rates and payment dates.
📅Indexation Schedule: March 2026
Centrelink adjusts payments twice a year (March & September) to keep up with inflation. The next adjustment is automatic, but the effective dates vary slightly depending on your reporting cycle.
🚀 Effective Date: 20 March 2026
For Age Pension, DSP, and Carer Payment recipients, the new rates apply from Friday, 20 March.
- First Full Payment: You will likely see the full increase in your first payment after April 3 (as Centrelink pays in arrears).
- Basis: Indexed by whichever is higher: CPI or PBLCI.
👔 Effective Date: 20 March 2026
JobSeeker Payment, Parenting Payment, and ABSTUDY Living Allowance are also indexed on this date.
- Note: Youth Allowance (Student/Apprentice) is usually indexed in January, so you may not see a change in March unless you receive Rent Assistance.
📅 Different Schedule (July)
Family Tax Benefit (FTB) Part A & B are generally indexed on 1 July (start of the financial year), NOT in March.
- Exception: If you receive Rent Assistance with your FTB, the Rent Assistance portion will increase on 20 March.
🤔Who gets the March Boost?
Not all payments go up. Check the grid below to confirm if your benefit is included in this round of indexation.
Rent Assistance (CRA)
Status: Increasing.
With rental vacancy rates at record lows, Commonwealth Rent Assistance (CRA) will be indexed to CPI. This helps cover the rising cost of renting for pensioners and job seekers.
Age Pension
Status: Increasing.
Indexed to protect purchasing power against inflation.
Disability (DSP)
Status: Increasing.
Follows the same indexation rules as the Age Pension.
🕵️ Lesser-Known Allowances
👇 Click the icons to reveal supplementary payments that might also increase.
Pharmacy Allowance
Helps with the cost of PBS medicines. Usually indexed in Jan, but check if your base pension changes affect eligibility.
Telephone Allowance
For eligible pensioners with a phone/internet service. Rates are reviewed on 20 March and 20 September.
Utilities (Energy)
The Energy Supplement is generally fixed and NOT indexed, but sometimes ad-hoc boosts are announced in the Federal Budget.
⚠️Income & Assets Tests: The Trap
A higher pension rate sounds good, but be careful. The amount you can earn (Income Free Area) does NOT always increase at the same time.
Income Test
Can I earn more?
(Tap to Reveal)
Warning: Thresholds
Usually, the Income Free Area is indexed in July, not March.
Risk: If you increase your part-time work hours in March thinking the limit went up, you might reduce your pension.
Deeming Rates
Savings & Shares
(Tap to Reveal)
Deeming Rates
The government “deems” your financial assets to earn a certain interest rate, regardless of actual return.
Tip: These rates are currently frozen until June 2026 (check Verified updates) to protect pensioners.
Assets Test
Property Value
(Tap to Reveal)
Assets Limits
Asset limits are indexed in July. Your family home is exempt, but other properties, caravans, and cars count.
Action: Update your asset values within 14 days if they change significantly.
📢Critical Update: CPI vs PBLCI
How the Increase is Calculated
Centrelink uses a “better off” guarantee. They calculate the increase using both the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI).
The Rule: Your pension increases by whichever number is HIGHER. This ensures pensioners are protected even if essential costs (like food/health) rise faster than general inflation.
🧮Increase Estimator (Forecast)
Based on a projected ~1.8% increase (Scenario only). Slide to see how much extra you might get per fortnight.
*Disclaimer: For simulation purposes only. Based on 1.8% forecast.
📌Summary & Next Steps
March 2026 Indexation
- ✅ Date: 20 March 2026.
- ✅ Included: Age Pension, DSP, JobSeeker, Rent Assistance.
- ✅ Excluded: Family Tax Benefit (Part A/B) – Wait for July.
❓Frequently Asked Questions
Centrelink pays in arrears. If your normal payment day is March 21, you might see 1 day of the new rate and 13 days of the old rate. The first full increased payment will arrive in your first full cycle after March 20.
No. The indexation is applied automatically to your payment. You do not need to call Centrelink or fill out any forms.
If inflation (CPI) is low, the increase will be small. The system is designed to maintain your purchasing power, not necessarily to give a “pay rise” above the cost of living.
The Energy Supplement is typically a fixed amount and does not get indexed with CPI. It usually stays the same unless the government passes specific new laws.
After March 20, log in to myGov (Centrelink), go to the “Payments” menu, and view your “Next Payment”. Services Australia will also send a letter to your myGov Inbox.