Skip to main content
BenefitsMate

Federal Budget 2026: Every Centrelink Change That Could Affect Your Payment

|6 min read

The 2026-27 Federal Budget drops April 12. JobSeeker could rise by $50/fn, rent assistance may increase again, and energy rebates are on the chopping block. Here's what every payment recipient needs to know.

KB

Kate Brennan

Senior Benefits Writer · BSW Western Sydney University

When the Budget Drops and Why It Matters

Treasurer Jim Chalmers is expected to hand down the 2026-27 Federal Budget on Tuesday, April 12, 2026 — just weeks before a likely federal election. That timing matters. Election budgets are historically the most generous for people on income support.

If you're on any Centrelink payment — JobSeeker, Age Pension, Disability Support Pension, Parenting Payment, Youth Allowance, or Family Tax Benefit — this budget could directly change how much lands in your account from July 1.

We'll update this article the moment the budget is delivered. For now, here's what the leaks, policy signals, and political pressure points are telling us about what's coming.

Key date: Most budget measures that affect Centrelink payments take effect from July 1, 2026 or September 20, 2026 (the next indexation date). Some cost-of-living measures may be backdated or start immediately.

JobSeeker Base Rate — Will It Finally Go Up?

This is the big one. The current JobSeeker base rate sits at $762.70 per fortnight for singles with no children — that's $54.48 per day, or $19,830 per year. It's still well below the Henderson Poverty Line of roughly $29,000.

The political pressure has been building for years. The Australian Council of Social Service (ACOSS) is pushing for a $76/fn increase to bring JobSeeker to at least $838.70/fn. The Greens want a bigger lift. Even business groups have backed a rise, arguing that extreme poverty makes it harder for people to find work.

What we're hearing: a $50/fn increase to JobSeeker is looking likely — bringing it to around $812.70/fn ($21,130/year). That's not poverty-line level, but it would be the most significant permanent increase since the $40/fn boost in the 2023 budget.

If you're on Youth Allowance (currently $620.80/fn for singles living away from home), expect a proportional increase — probably around $32-40/fn.

When it would start: Most likely September 20, 2026 (next indexation date), though a pre-election budget could push it to July 1.

Rent Assistance — Another Increase on the Cards

Commonwealth Rent Assistance has already had two rounds of increases — 15% in September 2023 and another 10% in September 2024. The maximum rate for singles is currently $188.20 per fortnight. For couples and families it's up to $177.24/fn.

But rents haven't stopped climbing. The national median rent hit $620/week in early 2026. For someone on JobSeeker paying even modest rent of $300/week, Rent Assistance covers barely 30% of their housing costs.

The expectation: a further 10% increase to maximum Rent Assistance, taking singles to around $207/fn. There's also talk of raising the income thresholds so more people qualify, and lifting the minimum rent threshold (currently $135.40/fn for singles) — the point at which RA starts being paid.

If you're renting and not currently getting Rent Assistance, use our calculator below to check — the threshold changes could bring you into eligibility.

Energy Rebates — Extended, Cut, or Gone?

The $300 energy bill rebate that every Australian household received in 2024-25 was extended through 2025-26 at a reduced $150. The current rebate expires on June 30, 2026.

The question is whether it gets extended again. Energy prices have stabilised somewhat — the average annual electricity bill is sitting around $1,750 for a typical household — but that's still significantly higher than pre-2022 levels.

What we're expecting: a targeted rebate of $150-200 for concession card holders and low-income households, rather than the universal rebate. This would cover people on Centrelink payments, Commonwealth Seniors Health Card holders, and potentially low-income workers.

If you're on any Centrelink payment, you're also getting the Energy Supplement automatically (worth $8.80-$14.10/fn depending on your payment type). That's not going anywhere — it's baked into the payment system.

The state-level rebates vary: Victoria's $250 Power Saving Bonus is still available, Queensland's $1,000 rebate dropped to $325, and NSW's Energy Accounts Payment Assistance is capped at $400. Check your state government website — these are separate from the federal rebate.

Age Pension and Superannuation Changes

The Age Pension is currently $1,116.30/fn for singles and $841.40/fn each for couples (combined $1,682.80). It was last indexed on March 20, 2026, and the next indexation is September 20.

The Age Pension is unlikely to see a structural change in this budget — it's already indexed to the higher of CPI or the Pensioner and Beneficiary Living Cost Index, which keeps it roughly in line with costs. But there are a couple of things to watch:

  • Deeming rate thresholds: The lower deeming rate threshold has been frozen at $60,400 (singles) and $100,200 (couples) since mid-2024. There's pressure to increase it to $65,000/$110,000, which would mean less of your savings are deemed to earn income — potentially increasing your pension.
  • Work Bonus: The temporary $4,000 Work Bonus income bank top-up from 2022 was made permanent. The ongoing Work Bonus lets pensioners earn up to $300/fn from employment before it affects their pension. No change expected here.
  • Super guarantee: The SG rate is already legislated to hit 12.5% on July 1, 2026 (up from 12%). This isn't a budget decision — it's locked in. But it means your employer contributions go up automatically.

If you're approaching Age Pension age (currently 67), the assets and income test thresholds are the ones to watch. Currently, a single homeowner can have up to $314,000 in assets (beyond the home) and still get the full pension.

Family Payments — FTB and Child Care Subsidy

Family Tax Benefit Part A is currently worth up to $213.36/fn per child (under 13) or $277.48/fn per child (13-15/16-19 in secondary school). FTB Part B tops out at $174.02/fn for families with a child under 5.

These are indexed automatically, but the budget could change the income thresholds. Currently, FTB Part A starts reducing when family income exceeds $62,634/year. There's talk of lifting this to $68,000-$70,000, which would keep more middle-income families eligible.

Child Care Subsidy: The maximum CCS rate is 90% for families earning under $83,280. The subsidy tapers down to 0% at $543,958. With child care fees averaging $120-140/day in capital cities, even 90% subsidised care is costing families $12-14/day out of pocket.

What to watch: possible changes to the activity test (the requirement to work/study a certain number of hours to get subsidised care). There's been ongoing pressure to remove or soften this for low-income families, which would make a real difference for parents trying to get back into the workforce.

Also on the radar: an increase to the Additional Child Care Subsidy for families in genuine hardship — currently it covers 120% of the fee cap, which may go to 130%.

Other Cost of Living Measures to Watch

Beyond the headline payment changes, there are a few other measures being floated:

  • Medicare bulk billing: The tripling of the bulk billing incentive in the 2023 budget has improved GP access, but out-of-pocket specialist costs are still brutal. Watch for expanded bulk billing incentives or a cap on specialist gap fees.
  • HECS/HELP debt: After the HELP indexation was capped to the lower of CPI or WPI from June 2023, there may be further relief — possibly a reduction in compulsory repayment rates for lower-income earners (currently 1% kicks in at $54,435).
  • Public transport concessions: A national concession card framework has been discussed, which would let Centrelink cardholders get public transport concessions in any state, not just their home state.
  • Pharmaceutical Benefits Scheme: PBS co-payments are currently $7.70 for concession holders and $31.60 for general patients. A freeze or reduction in the general rate has been floated.
  • Single parent measures: Parenting Payment Single (currently $922.10/fn) saw eligibility extended to youngest child turning 14. Further extensions or rate increases are possible.

What You Should Do Right Now

Don't wait for budget night to get your affairs in order. Here's what to do this week:

1. Check your current payment is correct. Use our calculators below to make sure you're getting everything you're entitled to right now. About 1 in 5 people are underpaid because they haven't updated their circumstances.

2. Update your details on myGov. Log into your Centrelink online account and make sure your rent, income, relationship status, and assets are current. If the budget changes thresholds, Services Australia will recalculate automatically — but only if your details are right.

3. Check your Rent Assistance. If you've moved or your rent has changed, update it. If you're not getting RA and you're renting, check if you're eligible — many people miss this.

4. Review your Health Care Card status. A Health Care Card unlocks cheaper PBS prescriptions, energy concessions, and transport discounts. If you're on a low income but not on Centrelink, you may still qualify for a Low Income Health Care Card (income under $681/week for singles).

5. Bookmark this page. We'll update it within hours of the budget being delivered with the confirmed changes, new rates, and start dates. No spin, no filler — just what's changing and what it means for your payment.

General information and estimates only — not financial, tax, or legal advice. Always verify with Services Australia.

KB

About Kate Brennan

Kate spent eight years as a social worker at Centrelink before moving into benefits writing. She specialises in JobSeeker, Disability Support Pension, and Carer Payment, and has first-hand experience helping people navigate the claims process. Based in Western Sydney, she holds a Bachelor of Social Work from Western Sydney University.

About our editorial process →