What the changes mean for your income
From 20 March 2026, Age Pension rates have increased.
But the more important change for many retirees is the rise in Centrelink deeming rates and how this affects pension outcomes, especially for part pensioners.
If you rely on the Age Pension, or are close to eligibility, this change is worth paying attention to.
What changed in March 2026
Two updates came into effect:
Age Pension increased
Payments rose with indexation. A full-rate pension increased by around $22.20 (single) and $33.40 (couple combined) per fortnight.
Deeming rates increased
Deeming rates have been frozen since COVID-19 and are now being adjusted closer to market conditions.
How deeming rates now apply
Financial assets | Deeming rate increase (from 20 March 2026) |
Up to $64,200 (single) / $106,200 (couple combined) | from 0.75% → to 1.25% |
Above these thresholds | from 2.75% → to 3.25% |
Why deeming rates matter
Deeming rates are the Government’s way to simplify assessment of how much income people can earn from their financial assets. Centrelink uses deeming rates to estimate income from financial assets such as:
- Savings accounts
- Term deposits
- Shares and managed funds
- Some income streams (superannuation pensions and annuities)
- Sale of your principal home
- Some gifts you make
This deemed income is assessed under the Age Pension income test, regardless of what you actually earn from the assets.
When deeming rates increase:
- your assessed income increases
- your Age Pension may reduce
- your eligibility can change
Who is most affected
The impact depends on your situation:
Full pensioners
Usually benefit from indexation with little impact from deeming.
Part pensioners
Most affected. Higher deemed income can reduce fortnightly payments.
Near-threshold retirees
Small changes may shift eligibility, either gaining or losing access to a part pension and concession benefits.
What this means for your financial strategy
This is where it becomes practical.
The Age Pension is increasingly sensitive to how your assets are structured, not just how much you have.
A few areas worth reviewing:
Asset mix
Different investments are treated differently under Centrelink rules.
Income structure
How income is drawn can affect your assessed position.
Eligibility positioning
Even a small pension can unlock valuable concessions.
Regular reviews
Policy settings are shifting again after a long period of stability.
The bottom line
The March 2026 Age Pension changes are not just about higher pension payments. For many retirees, particularly those on a part Age Pension, higher deeming rates may reduce overall income.
If your circumstances haven’t been reviewed recently, a simple check of your income and assets could be worthwhile.
A quick review can highlight whether your current information is accurate and whether small adjustments could improve your position.
If you’d like clarity on how these changes affect you, speak with the Synectic team. We can help you understand what’s likely to change and ensure your details are up to date.
