Centrelink Payments Guide — Australian Government Benefits
This article provides general information only and does not constitute financial advice. For advice tailored to your situation, consult a licensed financial adviser. Learn more.
Contents
Centrelink is the Australian Government service (administered by Services Australia) that delivers income support payments, family assistance, and other financial help to eligible Australians. Most payments are means-tested — your income and assets determine whether you qualify and how much you receive.
Types of Centrelink Payments
Australia’s social security system covers several broad categories:
| Category | Key payments |
|---|---|
| Retirement | Age Pension, Commonwealth Seniors Health Card |
| Unemployment / job search | JobSeeker Payment, Youth Allowance (job seekers) |
| Family | Family Tax Benefit A & B, Parental Leave Pay, Child Care Subsidy, Carer Payment, Carer Allowance |
| Youth and study | Youth Allowance, Austudy, ABSTUDY |
| Disability | Disability Support Pension (DSP) |
| Health | Medicare, Medicare Levy Surcharge, Private Health Insurance Rebate |
How Centrelink Means Testing Works
Most Centrelink payments apply both an income test and an assets test. Services Australia calculates your payment under each test and applies whichever results in the lower payment.
Income test: Your fortnightly gross income is assessed. Payments reduce by a set taper rate for each dollar earned above the income-free area. For JobSeeker (single, no children), the income-free area is $150/fortnight — above this, the payment reduces by $0.50 for every additional dollar earned.
Assets test: The total market value of your assets (excluding your primary residence for most payments) is assessed against thresholds. Super in accumulation phase is counted as an asset for most working-age payments. For the Age Pension, super is counted from Age Pension age (67).
Deeming: Financial assets (bank accounts, shares, managed funds, super in pension phase) are deemed to earn a notional return set by the government, regardless of actual returns. Deemed income counts towards the income test.
Payment Rates and Indexation
Most Centrelink payment rates are indexed twice per year — in March and September. Pension payments (Age Pension, DSP, Carer Payment) are indexed to the higher of CPI and Male Total Average Weekly Earnings (MTAWE). Working-age payments (JobSeeker, Youth Allowance) are indexed to CPI only.
Always verify current rates at Services Australia — rates change each indexation period and are updated on the website.
Age Pension
The Age Pension provides income support for older Australians who meet the age, residency, and means tests.
- Eligibility age: 67 (for anyone born on or after 1 January 1957)
- Residency requirement: 10 years as an Australian resident, including 5 continuous years
- Maximum rate (FY2025–26, approximate): ~$1,149/fortnight (single); ~$1,732/fortnight (couple combined)
- Assets test — homeowner, single: Full pension below ~$314,000 in assets; no pension above ~$695,500
- Assets test — homeowner, couple: Full pension below ~$470,000; no pension above ~$1,047,500
The family home is always exempt from the assets test. Superannuation is assessed from Age Pension age. Many Australians with moderate super balances qualify for a partial Age Pension — the means tests are not all-or-nothing.
JobSeeker Payment
JobSeeker is the main income support for working-age Australians who are unemployed and looking for work.
- Eligibility age: 22 to Age Pension age (those aged 55+ who have been on payment for 9+ months face reduced mutual obligation requirements)
- Maximum rate (FY2025–26, approximate): ~$776/fortnight (single, no children)
- Income-free area: $150/fortnight — above this, payment reduces by $0.50 per dollar
- Mutual obligation: You must be actively looking for work and attending appointments or other approved activities
The JobSeeker increase: Rates were lifted in the 2023 and 2024 federal budgets following years of advocacy — but remain below the poverty line for many recipients. The single rate of $776/fortnight equates to approximately $20,000 per year.
Family Tax Benefit
Family Tax Benefit (FTB) is paid to families with dependent children. It has two parts:
FTB Part A: Based on the number of children, their ages, and family income. Maximum rate (per child per fortnight, FY2025–26) is approximately $222.04 (0–12 years) to $288.82 (13–19 years). Payments reduce as family income rises above the lower income limit (~$62,634).
FTB Part B: Additional support for single-parent families or families with one main earner. Maximum approximately $188.86/fortnight (youngest child under 5), reducing to $131.74 (5–18 years). FTB B has a secondary earner income limit of approximately $6,059 — above this, payment reduces.
Accessing Centrelink Payments
All Centrelink services are accessed via myGov — the federal government’s online services hub. Link your myGov account to Centrelink to claim payments, update your income, manage obligations, and check payment details.
For complex situations — particularly Age Pension applications with significant assets or superannuation — financial information services officers (FISO) at Services Australia can provide free guidance on how payments interact with your financial situation.
Frequently Asked Questions
What is the maximum Age Pension rate in Australia in 2026? For FY2025–26, the maximum Age Pension is approximately $1,149 per fortnight (single) and $1,732 per fortnight (couple combined), inclusive of the pension supplement and energy supplement. Rates are indexed in March and September — check Services Australia for the most current figures.
How much can I earn before losing JobSeeker in Australia? The income-free area for JobSeeker is $150/fortnight. Above this, your payment reduces by $0.50 per dollar earned (up to $256/fortnight), then by $0.60 per dollar above that. The payment cuts out entirely when earnings reach approximately $1,673/fortnight (single, no children) — though this varies slightly by personal situation.
Does owning a home affect Centrelink payments? The family home is exempt from the Centrelink assets test for most payments, including the Age Pension. However, the value of the home is not completely ignored — homeowners and non-homeowners have different assets test thresholds. Non-homeowners (renters) have a higher asset cut-off to account for the fact they must fund their housing costs.
Centrelink eligibility and payment rates are subject to regular change and depend heavily on individual circumstances. For assistance with claims or complex situations, contact Services Australia directly or visit a Centrelink service centre. Find more information at servicesaustralia.gov.au.