Centrelink Changes 2026: Everything That's Changed This Year

This article is a living document that tracks every significant change to Centrelink payments, rules, and processes during 2026. We update it as changes are announced and implemented, so you can bookmark this page and come back whenever you hear something has changed. 2026 has already brought several important changes, from payment rate increases to new security requirements and updated reporting rules.

Some of these changes are good news — your payments have gone up. Others need action on your part, like setting up two-factor authentication. A few changes affect how your obligations work or how your income is assessed. Below, we cover every change in chronological order, starting with the most recent.

Here's the thing. Each section explains what changed, when it took effect, and what you need to do (if anything).

On 20 March 2026, all Centrelink income support payments were indexed in line with CPI movements of approximately 1.8%. This is the regular twice-yearly indexation that happens every March and September. Key rate changes from 20 March 2026: - Age Pension (single): increased to approximately $1,144.40 per fortnight (including supplements) - Age Pension (couple, each): increased to approximately $862.60 per fortnight - JobSeeker (single, no children): increased to approximately $762.70 per fortnight - JobSeeker (single, with children): increased to approximately $816.90 per fortnight - Disability Support Pension (single): increased to approximately $1,116.30 per fortnight - Carer Payment (single): increased to approximately $1,116.30 per fortnight - Parenting Payment Single: increased to approximately $1,004.40 per fortnight - Youth Allowance (away from home): increased to approximately $621.80 per fortnight - Rent Assistance (single, max): increased to approximately $188.20 per fortnight These new rates are applied automatically.

You don't need to do anything. If your next payment after 20 March doesn't reflect the increase, wait one full payment cycle and then check your Centrelink online account. The new rates will remain in effect until the next indexation on 20 September 2026.

Deeming rates — the rates Centrelink uses to estimate the income from your financial assets — were adjusted in March 2026. The lower deeming rate is currently 0.25% and the upper deeming rate is 2.25%. The lower rate applies to the first $64,200 of your financial assets if you're single, or the first $106,200 combined if you're a couple.

Everything above that threshold is deemed at the upper rate of 2.25%. These rates directly affect Age Pension, DSP, and Carer Payment recipients who have savings, shares, managed funds, or other financial investments. If deeming rates go up, Centrelink assumes you're earning more from your investments, which can reduce your pension. If they go down, the opposite happens. For most pensioners with modest savings, the impact of recent deeming rate movements is relatively small — perhaps a few dollars per fortnight.

Let's break this down. But if you've significant financial assets (say $200,000 or more), even small changes to deeming rates can shift your pension by $20 to $50 per fortnight. See our detailed deeming rates article for worked examples.

From February 2026, Services Australia has rolled out mandatory two-factor authentication (2FA) for myGov accounts linked to Centrelink. This means you now need to verify your identity with a code sent to your phone or email when you log in, in addition to your password. If you've not set up 2FA yet, you will be prompted to do so the next time you log in to myGov.

You can choose to receive your verification code via SMS to your mobile phone or via the myGov app. What you need to do: - Make sure your mobile phone number is up to date in your myGov account - When prompted, follow the steps to enable 2FA - If you don't have a mobile phone, you can use an email address instead, though SMS is recommended for security - If you're having trouble setting up 2FA, call the myGov helpdesk on 13 23 07 This change was introduced to reduce fraud and protect your account. While it adds an extra step to logging in, it means that even if someone gets your password, they can't access your account without also having your phone. If you're caring for someone and manage their Centrelink on their behalf, you will need to help them set up 2FA on their account too. That's the key takeaway.

From 1 January 2026, the Workforce Australia Participant Income Test (WPIT) rules were updated. The income free area for student payments (Youth Allowance as a student, Austudy, and ABSTUDY) increased to $539 per fortnight, up from the previous $524.

This means students can earn more from part-time work before their payment starts to reduce. For JobSeeker recipients, the income free area remains at $150 per fortnight, with the taper rates unchanged (50 cents reduction for each dollar earned between $150 and $256, then 60 cents for each dollar above $256). The way income is reported has also been streamlined through continued rollout of Single Touch Payroll (STP) data matching. Services Australia now cross-references your reported income with employer payroll data in near real-time. This means: - You must still report your income every fortnight on your reporting day - But discrepancies between what you report and what your employer reports are flagged much faster - If there's a mismatch, you may receive a notification asking you to confirm your income - Consistent under-reporting will trigger compliance reviews more quickly than in previous years The key message: report your income accurately and on time.

Quick reality check. Centrelink already knows what your employer is paying you through STP. Trying to under-report will create a debt and potential penalties.

Mutual obligations — the activities you must complete to keep receiving JobSeeker, Youth Allowance (job seeker), or Parenting Payment (with participation requirements) — have seen some adjustments in 2026. The points-based activation system (PBAS) continues, requiring most job seekers to accumulate points each month through a combination of job searches, training, volunteering, and other approved activities. The target is generally 100 points per month for full-time participants. Key changes and clarifications for 2026: - Job seekers aged 55 to 59 can meet their full requirements through 30 hours per fortnight of approved voluntary work or paid work, or a combination - Job seekers aged 60 and over have reduced requirements and can meet obligations entirely through 30 hours per fortnight of any combination of voluntary work, paid work, or approved activities - Principal carer parents on JobSeeker have part-time requirements (generally 30 hours per fortnight of any approved activity including study) - There's increased flexibility for people in regional and remote areas where local job markets are limited - Temporary medical exemptions continue to be available for people with short-term health conditions (typically 3 to 6 months) If you're struggling to meet your mutual obligations due to health, caring responsibilities, or other barriers, talk to your employment services provider about getting your requirements adjusted.

You can also request a Centrelink social worker referral by calling 132 850.

Services Australia has implemented several new compliance and integrity measures in 2026, building on previous years' investments in data matching and fraud detection. Key compliance changes: - Enhanced data matching with the ATO, banks, and state government agencies to detect undeclared income and assets - More frequent reviews of relationship status, particularly for people claiming the single rate while living with a partner - Expanded use of tip-offs and social media monitoring for fraud investigations - Faster debt calculation and recovery through automated systems (with human review required before any debt is raised, following the Robodebt Royal Commission recommendations) - Continued operation of the Robodebt Income Apportionment Resolution Scheme, which remains open until January 2027 for people affected by the original Robodebt program What this means for you: keep your details up to date. Report changes to your income, assets, living arrangements, and relationship status within 14 days.

If Centrelink contacts you for a review, respond promptly — ignoring a review can result in your payment being suspended. If you receive a debt notice that you believe is wrong, you've the right to dispute it. See our guide to Centrelink debts for your full rights.

Worth knowing: Looking ahead, here are the key dates and expected changes for the remainder of 2026: - 1 July 2026: new financial year begins. Income and assets tests will be updated.

The AML/CTF Tranche 2 reforms take effect, which may need additional identification verification for some Centrelink processes. - 20 September 2026: the next regular payment indexation. Rates will be adjusted based on CPI movements for the June quarter. If inflation remains around 2%, expect increases of roughly 1.5 to 2%. - Ongoing: continued rollout of digital services and app-based features for managing your Centrelink account We will continue to update this article as new changes are announced.

Bookmark this page and check back regularly, or sign up for our newsletter to get updates delivered to your inbox. If you're unsure about how any of these changes affect your specific situation, use our Benefits Finder tool to check your current entitlements, or call Centrelink on 132 850.