September 2026 Age Pension Increase: What It Means For Your Aged Care Services
The Age Pension increased on 20 September 2026, along with Carer Payment and Disability Support Pension rates.
The increase is part of the regular indexation of pension payments, which happens twice a year to help payments keep pace with changes in the cost of living. Of course, with the rising cost of essentials such as groceries, energy and petrol, many pensioners will still find their budgets under pressure.
For anyone navigating aged care funding in Australia, however, it is worth knowing exactly what has changed. And how it may affect the money available for your everyday needs and care.
What changed in September 2026?
From 20 September, the maximum Age Pension rates increased by:
· $36.80 a fortnight for singles, taking the maximum payment to $1,237.70
· $55.60 a fortnight for couples combined, taking the maximum to $1,866.00
The increase is applied automatically by Services Australia, so you don’t need to apply for it. Your updated payment should appear in your Centrelink online account or Express Plus Centrelink app.
What about the new deeming rates?
There is another change worth knowing about if you receive a full or part Age Pension and have financial assets.
From 20 September, the deeming rates used by Centrelink to calculate income from financial assets increased to 1.75% for assets below the relevant threshold ($66,800 for singles or $110,600 for couples combined) and 3.75% above it. Deeming applies to assets such as bank deposits, shares, managed funds and some income streams.
Here’s an example
Margaret is single, owns her home and has $200,000 in savings. She has no other income.
Under the new rates, Centrelink deems the first $66,800 of her savings to earn 1.75% ($1,169 a year) and the remaining $133,200 to earn 3.75% ($4,995 a year). That’s a deemed income of $6,164 a year, or about $237 a fortnight, even if her savings actually earn less.
A single pensioner can have up to $226 a fortnight in income before their pension is reduced. Margaret is now about $11 over that limit, so her pension reduces by 50 cents for every dollar over, or around $5.50 a fortnight.
Under the old deeming rates of 1.25% and 3.25%, her deemed income would have been about $199 a fortnight. That’s under the limit, so she received the full pension. She still comes out ahead overall, receiving about $31 a fortnight more after the September increase, but not the full $36.80.
For some part-pensioners, this could affect the amount of pension they receive. It is worth checking your Centrelink account to understand how the changes affect your individual circumstances.
What does your pension have to do with aged care?
Your pension is only one part of the bigger picture when you’re planning for aged care services.
If you’re waiting for government-funded support through Support at Home, for example, you may decide to pay for some services yourself in the meantime. This could include domestic assistance, personal care, transport or nursing.
For some people, using their available income for private care can mean getting the practical help they need sooner, and continuing to live independently at home while they navigate the aged care system.
My Guardian can also help you understand your options, including government-funded Support at Home and private care.
Make sure your care plan keeps pace with your needs
Government payments and aged care funding can be complicated. You don’t have to work it all out alone.
Whether you’re considering self-funding some aged care services or need help understanding your Support at Home options, My Guardian can help you navigate the system and find practical ways to maintain your independence at home.
Call My Guardian on 02 9336 7555 for a free consultation.
