What are the new Centrelink deeming rates from 20 March 2026?

From 20 March 2026, Centrelink deeming rates rise to two tiers: 1.25% on the lower tier of financial assets and 3.25% on balances above the threshold. Deeming applies to bank accounts, term deposits, shares, and managed funds. Centrelink uses this deemed income in the income test to help set your benefit rate. Thresholds differ for singles and couples and are reviewed periodically by Services Australia.

Will the Age Pension increase offset higher deemed income?

The Age Pension increase of about $22.20 a fortnight provides a baseline boost, but the net effect depends on your assets and income. If higher deemed income reduces your part pension, the indexation uplift may only partly offset the change. Retirees with modest financial assets often see little or no deeming impact and therefore keep most of the indexation increase in their March 20 payments.

How should retirees prepare for the deeming rate changes?

Update balances in your MyGov account so Centrelink calculations are accurate. Review cash needs for the next three months and adjust bill payments if your part pension may fall. Compare deposit and term deposit rates, fees, and access terms. Consider laddering maturities to manage rate risk. Use a pension or benefits calculator to model outcomes. Seek licensed advice if investments, super drawdowns, or tax settings are complex.

Global Market Insights

Centrelink Deeming Rates Rise: What Changes March 20 – February 25

ByHuzaifa Zahoor February 25, 2026February 25, 2026

Centrelink deeming rates are changing on 20 March, lifting to 1.25% and 3.25%. At the same time, the Age Pension increase will add about $22.20 a fortnight to eligible payments. As at 25 February, this mix tightens means testing while adding cash to households. We explain what the deeming rate changes mean, how March 20 payments will look, and the likely impact on retirees’ budgets and investor sentiment across Australia. Use this guide to plan ahead and avoid surprises.