Starting September 20, 2025, millions of Australian retirees will receive a 2.6% increase in their Age Pension payments. This welcome boost is designed to help older Australians cope with inflation and rising living costs.
Whether you’re currently receiving benefits or nearing retirement, it’s essential to understand what this increase means, how much you could receive, and how to qualify.
Age Pension Increase – April 2025 Update
The Australian government conducts biannual reviews of the Age Pension to ensure payments keep up with the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI).
The latest adjustment, set for April 2025, delivers a 2.6% increase to eligible recipients, providing greater financial support in the face of economic challenges.
Why the Age Pension Matters
The Age Pension is a cornerstone of Australia’s social safety net, helping retirees maintain a reasonable quality of life.
This regular payment supports everyday expenses like groceries, utilities, and rent. With the cost of living rising, the 2.6% bump can make a meaningful difference for many households.
Who Is Eligible for the Age Pension?
To qualify for the Age Pension in Australia, applicants must meet the following conditions:
- Age Requirement: You must be at least 67 years old (applicable for individuals born after April 1, 1957).
- Residency: Must have lived in Australia for at least 10 years, including five continuous years. Temporary or non-permanent residents are not eligible.
Income and Assets Test – What You Need to Know
Centrelink uses income and assets tests to determine who qualifies for the full or partial Age Pension.
Income Test (2025 Thresholds)
| Category | Income Before Reduction | Reduction Rate |
|---|---|---|
| Single | $212 per fortnight | 50¢ per $1 over |
| Couple | $360 combined/fortnight | 50¢ per $1 over |
Assets Test (2025 Thresholds)
| Category | Asset Limit for Full Pension | Reduction Rate |
|---|---|---|
| Single | $301,750 | $3 per $1,000 over |
| Couple | $451,500 combined | $3 per $1,000 over |
Primary residences are exempt from the assets test.
Updated Fortnightly Pension Payments – Effective September 20, 2025
| Recipient Category | Previous Rate | New Rate | Increase |
|---|---|---|---|
| Single | $1,116.30 | $1,144.40 | +$28.10 |
| Couple (combined) | $1,682.80 | $1,725.20 | +$42.40 |
| Couple (illness-separated) | $1,116.30/person | $1,144.40/person | +$28.10 |
Extra Benefits You May Qualify For
Beyond the base pension, several supplementary payments are available to assist with living costs:
Pension Supplement (April 2025 Rates)
| Category | Payment |
|---|---|
| Single | $83.20 |
| Couple | $125.40 (combined) |
Rent Assistance (April 2025 Maximum Rates)
| Category | Payment |
|---|---|
| Single | $211.20 |
| Couple | $199.00 (combined) |
Energy Supplement
Still available to recipients who started receiving it before 2016 or meet special conditions. It helps offset rising utility bills.
Read More: Approved! $890 Centrelink Payments Start Rolling Out This April – Are You Getting One?
Transitional Pension Rates – Still Applicable for Some
Certain retirees who began receiving benefits before 2009 may still be on transitional rates, which are slightly higher in some cases:
| Category | Transitional Rate |
|---|---|
| Single | $941.10 per fortnight |
| Couple | $759.30 per person |
These pensioners may also qualify for other benefits, including the Energy Supplement.
How to Apply for the Age Pension
If you’re nearing retirement, it’s smart to apply early—up to 13 weeks before your 67th birthday. Applications can be submitted:
- Online via Centrelink
- In person at a Services Australia office
Required Documents
- Proof of age and identity
- Details of your income and assets
- Residency information
Once approved, payments are made every two weeks.
With a 2.6% pension increase beginning in September 2025, Australian seniors will receive added financial support just in time to ease the burden of higher living costs.
Whether you’re planning to apply soon or already receiving payments, understanding eligibility, payment tiers, and available supplements is essential to maximizing your benefits.
Stay informed and apply early to ensure you don’t miss out on the full support you’re entitled to.
When will the new Age Pension rates take effect?
The updated Age Pension rates, including the 2.6% increase, will take effect starting September 20, 2025. Payments reflecting the new amounts will be issued in the next scheduled fortnightly cycle.
Can I receive the Age Pension if I own a home?
Yes, you can still qualify for the Age Pension if you own your primary residence. The value of your home is not counted in the assets test, but other assets such as vehicles, savings, and investments will be assessed.
What happens if my income or assets exceed the threshold?
If your income or assets exceed the specified limits, you may still receive a reduced Age Pension. Payments are gradually reduced based on how much your income or assets go over the threshold, and eligibility may phase out entirely at higher levels.