Australians face a mixed start to September, with the cost of sending a letter rising as millions of pensioners, jobseekers, students, parents and renters receive higher government payments. The changes come as official figures show inflation easing, reducing expectations of another Reserve Bank interest rate rise this month.
Australia Post’s basic postage rate will increase by 15 cents from Tuesday, September 1, taking the price of a standard small letter from $1.70 to $1.85. The Australian Competition and Consumer Commission did not oppose the 8.8 per cent increase after concluding that Australia Post was unlikely to cover the cost of its reserved letter services at existing prices. ([accc.gov.au](https://www.accc.gov.au/media-release/australia-post-stamp-price-increase-not-opposed-by-accc?utm_source=openai))
Concession stamps will not increase, remaining available at $3 for a booklet of five, while seasonal greeting card stamps will stay at 65 cents each. Prices for larger letters will also rise, with postage for a large letter weighing up to 125g increasing to $3.70.
Centrelink payments rise on September 20
The main boost for households will arrive on September 20, when the twice-yearly indexation of Centrelink payments takes effect. The federal Department of Social Services says more than 5.3 million Australians will benefit from the changes, representing about $4 billion in additional cost-of-living support.
The maximum Age Pension for a single recipient will increase by $36.80 a fortnight to $1,237.70, while the combined rate for a pensioner couple will rise by $55.60 to $1,866.00. The adjustment covers the basic pension, Pension Supplement and Energy Supplement.
JobSeeker Payment for a single person without children will rise by $16.20 a fortnight to $833.70. Parenting Payment for a single recipient will increase by $20.90 to $1,087.20, while Youth Allowance and payments including Austudy and ABSTUDY will also be adjusted.
Commonwealth Rent Assistance will rise by 2 per cent, increasing the maximum payment by $4.40 a fortnight to $223.80. The government says almost one million renters will receive higher assistance, with maximum rates now around 53 per cent higher than in 2022.
Deeming rates used to assess income from financial assets will also change. From September 20, the lower rate will be 1.75 per cent on assets up to $66,800 for singles and $110,600 for couples combined, with a 3.75 per cent rate applying above those thresholds. ([ministers.dss.gov.au](https://ministers.dss.gov.au/media-releases/19221?utm_source=openai))
Social Services Minister Tanya Plibersek said the changes would help people meet essential costs, including rent, food and household bills.
“From September 20, an extra $4 billion of cost-of-living relief will begin to flow to over 5.3 million Australians,” she said.
Inflation eases as RBA prepares for September decision
The latest figures from the Australian Bureau of Statistics showed the consumer price index rose by 3.5 per cent in the year to July, down from 3.8 per cent in June. Underlying inflation, measured by the trimmed mean, remained at 3.6 per cent.
Housing was the largest contributor to annual inflation, rising by 5 per cent, while rents increased by 3.6 per cent. Petrol prices also rose sharply in July after the partial unwinding of federal fuel-excise relief. ([abs.gov.au](https://www.abs.gov.au/media-centre/media-releases/cpi-rose-35-year-july-2026?utm_source=openai))
The Reserve Bank left its cash rate unchanged at 4.35 per cent at its August meeting. Its minutes said board members remained alert to the possibility that renewed inflationary pressure could require further tightening, but judged there was time to assess incoming data.
The next monetary policy decision is due on September 29, following a meeting on September 28 and 29. The RBA’s published schedule lists inflation data for release on September 30, meaning borrowers are currently expected to avoid an increase at the September meeting, although further action later in the year has not been ruled out. ([rba.gov.au](https://www.rba.gov.au/monetary-policy/rba-board-minutes/2026/2026-08-11.html?utm_source=openai))
