WEEKLY E-MAIL

3 March 2026

CENTRELINK DEEMING RATES DUE TO INCREASE FROM 20 MARCH 2026

By Karen Maher

On 20 February, 2026, Minister for Social Services, Tanya Plibersek announced that Centrelink deeming rates will increase from 20 March 2026.

This change follows the September 2025 adjustment, which was the first increase after several years of frozen deeming rates.

What Are Deeming Rates?

Deeming rates are benchmarks used by Centrelink to estimate the income earned from financial assets – such as bank accounts, shares, and superannuation. These assumed earnings are used to assess eligibility for, and the level of, income-tested benefits, including the Age Pension and concession cards such as the Low Income Health Care Card.

Rather than assessing actual investment returns, Centrelink applies a standardised rate of return to your assets to calculate “deemed income.”

Why Are Rates Changing?

The updated rates are based on advice from the Australian Government Actuary (AGA), marking the first formal review and set of recommendations made by the AGA regarding deeming rates.

The change also reflects the Government’s commitment to adjust deeming rates gradually over time.

Despite the increase, the new rates remain below long-term historical averages, and the AGA has advised that these levels are achievable through investment returns.

New deeming rates from 20 March 2026

When Will the Changes Apply?

The new deeming rates will take effect from 20 March 2026, coinciding with the regular March and September social security indexation. The changes reflect updated Consumer Price Index (CPI) and Pensioner and Beneficiary Living Cost Index (PBLCI) data recorded in late 2025.

These indexation updates permanently increase the base pension rates and adjust both the income and asset test thresholds. Final figures are expected to be confirmed shortly before 20 March 2026.

What Does This Mean For You?

The impact of the higher deeming rates will depend on your personal financial situation. If your benefits are reduced due to the changes, consider speaking with your Financial Adviser. They can assist with exploring strategies to optimise your Age Pension entitlements, or increase your cashflow from your investments to maintain your income at a similar overall level.

Karen Maher
Associate

If you have any questions or comments, please email me at karen@gfmwealth.com.au

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