When will the new rates hit my bank account?

Indexation takes effect from 20 March. Payments issued after that date will reflect the new rate for eligible recipients. Processing times vary by schedule, so some people may see the change in the first pay cycle after 20 March, while others may see it the following cycle.

How do deeming rates increase affect my Age Pension?

Deeming sets a notional return on financial assets. When rates rise to 1.25% and 3.25%, your assessed income may increase, which can reduce your pension under the income test. The impact depends on your balances, partner status, and other income. Update records and request a reassessment if needed.

Will JobSeeker payment changes also apply in March?

Yes. JobSeeker is indexed, so eligible recipients receive a higher base rate from 20 March. Actual outcomes still depend on income and assets tests, which can affect final amounts. Check your Centrelink online account or contact Services Australia to confirm your updated rate and payment date.

What steps can I take to protect my entitlements?

Keep your financial details current, including bank balances and investments. Compare deposit and cash product rates, maintain an emergency buffer, and avoid impulsive portfolio changes. If your circumstances shift, request a review. Speaking with a licensed adviser can help align investment choices with income tests and your spending needs.

Where can I read more about these changes?

For coverage of the indexation lift and payment impacts, see Yahoo Finance reporting [source](https://au.finance.yahoo.com/news/centrelink-cash-boost-for-5-million-aussies-on-age-pension-jobseeker-to-hit-bank-accounts-in-weeks-004755445.html). For deeming rule changes and policy context, read the Australian Financial Review update [source](https://www.afr.com/policy/economy/government-changes-investment-return-rules-for-pensions-20260220-p5o41f).

Global Market Insights

Centrelink Payments February 21: Indexation Lift vs Deeming Hike

ByDanny Kontos February 21, 2026February 21, 2026

Centrelink payments pension changes will shape retiree cash flow from 20 March. The full single Age Pension rises by $22.20 per fortnight, while deeming rates step up to 1.25% and 3.25% on financial assets. That mix boosts base rates but tightens means testing for many. About 771,000 people could see pension outcomes shift. We explain what lifts, what could be trimmed, and what it means for spending, planning, and portfolio decisions across Australia.