Your Pension Is About to Change. here’s What to Check.
Twice a year, on 20 March and 20 September, the Age Pension resets. Payment rates move, income and asset test thresholds shift, and, less visibly, so do the deeming rates Centrelink uses to work out how much income your savings and investments are assumed to earn. Most years this passes quietly. This year’s September change is bigger than most, and not all of it is good news.
The headline figures
From 20 September 2026, the maximum single Age Pension rises to $1,237.70 a fortnight, up $36.80. For couples, it climbs to $1,866.00 combined, up $55.60. Over a full year, that’s an extra $956.80 for a single pensioner and an extra $1,445.60 for a couple. If you’re already receiving the full pension, this lands in your account automatically. There’s nothing you need to do, and nothing to fill in.
The part that catches people out
Here’s where it gets more complicated. On the same day the pension rate rises, so do the deeming rates Centrelink uses to estimate income from your financial assets, things like savings accounts, term deposits, shares and account-based pensions. The lower deeming rate rises from 1.25 per cent to 1.75 per cent, applying to financial assets up to $66,800 for a single person or $110,600 for a couple. Anything held above that threshold is deemed at the upper rate, which rises from 3.25 per cent to 3.75 per cent.
For full pensioners, none of this matters, your payment isn’t determined by the income test, so a deeming rate change has no effect on what lands in your account. But if you’re a part-pensioner with meaningful savings, shares or other financial assets, a higher deemed income can eat into some, or all, of that advertised pension increase. Centrelink assumes your money is earning more than it did in March, whether or not that’s actually true for your particular investments, and reduces your payment accordingly if you’re over the relevant income threshold.
The two changes are designed to move together, roughly offsetting one another for people well inside the thresholds. But they don’t always cancel out evenly, and where you personally land depends entirely on how close you are to the income and asset test cut-offs. Someone sitting just under a threshold in March could find themselves just over it in September, purely because of the deeming change, even if their actual bank balance hasn’t moved.
A proposal worth watching, not yet law
Worth flagging, though not yet locked in: the Government has proposed extending the full Pension Supplement for people travelling overseas from six weeks to twelve. This would matter for pensioners who spend extended periods overseas, whether visiting family, wintering somewhere warmer, or simply taking a longer trip than they used to. It’s sitting in the Budget papers, but it still needs to pass Parliament, so treat it as likely rather than certain for now. We’ll update this piece once it’s confirmed one way or the other.
Who should actually check their numbers
This matters most for anyone who is a part-pensioner already, anyone close to the assets or income test thresholds, and anyone who holds a noticeable amount in cash, term deposits or shares outside super. If that’s you, or a parent or family member you help manage finances for, a quick check against the new figures before the 20th is worthwhile. This kind of review sits squarely within what we help clients with under our Centrelink and Age Pension advice service (centaurfinancial.com.au/services/centrelink-age-pension-advice/), and it’s a recurring theme for the retirees we work with through our In-Retirement Refiners service (centaurfinancial.com.au/who-we-help/in-retirement-refiners/), people who are already retired and want their existing plan fine-tuned rather than rebuilt from scratch.
Our view: if you’re a part-pensioner, or close to becoming one, this is a good month for a five-minute check against the new thresholds. Small shifts in how your assets are held, cash versus super versus other investments, can matter more than they look on the surface. If you’re not sure where you land, send it our way and we’ll check it against the new numbers before the 20th.
It’s also worth remembering that Age Pension income is only one lever in a broader plan. If the deeming changes have you thinking harder about how much you’re holding in cash versus growth assets, our piece on the ideas in Die With Zero (centaurfinancial.com.au/retirement/die-with-zero-retirement-book-review/) tackles that exact tension from a different angle.
FAQs
Do I need to do anything to get the pension increase?
No. If you already receive a pension, the new rate applies automatically from 20 September 2026. There’s no form to fill in for the rate change itself.
Why might my part-pension not go up by the full amount?
Because deeming rates rise on the same day as the payment increase. A higher deemed income from your financial assets can offset some or all of the payment increase for part-pensioners assessed under the income test.
Does the deeming rate change affect full pensioners?
Generally no, if your payment is determined by the assets test rather than the income test, or you’re already on the maximum rate, deeming changes typically don’t reduce your payment.
Is the overseas Pension Supplement extension confirmed?
Not yet. It’s a Budget proposal to extend the full supplement from six to twelve weeks for people travelling overseas, but it still requires legislation to pass Parliament.
Where can I check the exact new thresholds for my situation?
Centrelink publishes updated threshold tables from 20 September each year, and we can run your specific figures against them if you’d rather have someone else do the maths.
Plan well. Live large.
Centaur Financial Services is a Gold Coast financial planning practice helping professionals, retirees, business owners, and investors make confident wealth decisions. Based in Robina and serving clients across Australia, we’re proud to be one of Australia’s most awarded advice firms. We specialise in retirement planning and back it with institutional-grade investment capability.
This article is general information only. It does not take into account your personal objectives, financial situation or needs. Centaur Financial Services Pty Ltd is a Corporate Authorised Representative (CAR No. 342372) of Abundant Wealth Partners Pty Ltd, ABN 35 680 570 487, AFSL 564749. Please obtain personal advice before acting on any of this content.
