More than five million Australians are set to benefit from a September cash boost.

Indexation to social security payments will deliver fortnightly increases of $36.80 for single people on an Age Pension and $55.60 for couples.

This is the highest pension indexation since March 2023.

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JobSeeker (up $16.20 for singles without children), Parenting Payments (up $20.90 for singles and $14.80 for partnered recipients), Youth Allowance for principal carers (up $20.90), and the ABSTUDY Living Allowance for singles over 22 (up $16.20) have been increased.

Almost one million tenants will also benefit from higher rates of Commonwealth Rent Assistance.

“From September 20, an extra $4 billion of cost-of-living relief will begin to flow to over 5.3 million Australians,” Social Services Minister Tanya Plibersek said.

“Whether it’s paying the rent, putting food on the table or covering everyday bills, this extra support will help Australians on income support make ends meet.

“We’ll continue to make sure the system is there to support those who need it most, ensuring that everyone can make ends meet and no one gets left behind.”

Minister for Social Services Tanya Plibersek said cost-of-living relief will begin to flow to more than five million Australians from September 20. Credit: MICK TSIKAS/AAPIMAGE

Rates, thresholds and limits are updated twice a year to “maintain their value over time” and ensure Australians are not left in a worse position by inflation.

Most payments are indexed in accordance with shifts in the consumer price index.

On top of the indexation increases, a recommendation from the Australian Government Actuary (AGA) to increase social security deeming rates has been accepted.

Deeming rates are used to work out income from financial assets, and are a factor in determining eligibility for government payments.

The deeming rate will be updated from 1.25 per cent to 1.75 per cent for financial assets up to $66,800 for singles and $110,600 for couples combined, with a rate of 3.75 per cent for any financial assets above the threshold, up from 3.25 per cent.

“A crucial component of the social security system, deeming provides a simple and fair way of assessing income from financial assets so that government support is directed to those who need it most,” the government said.

The new rate will be in effect from September 20.

A full list of the updated payment rates can be found here.