From October 2025, millions of older Australians will benefit from a major pension increase. The government has confirmed that the Age Pension will rise by $3,600 annually, helping retirees manage rising grocery, rent, and medical costs. Instead of one lump sum, the increase will be added to regular fortnightly payments, ensuring steady support throughout the year.
Why the Age Pension Is Increasing
Living costs continue to rise, leaving many retirees struggling with daily essentials. The government’s $3,600 boost is designed to:
- Protect pensioners against inflation.
- Provide ongoing support rather than a one-time payment.
- Help with food, electricity, housing, and medical bills.
This increase is part of the regular March and October pension indexation updates, which adjust payments to reflect economic changes.
Who Will Receive the $3,600 Pension Boost?
The payment rise will not go to everyone automatically. It applies to eligible Age Pension recipients who meet Centrelink’s rules.
Key Eligibility Requirements
- Must meet the Age Pension age, generally 67 years (depending on your birth year).
- Must be an Australian citizen or permanent resident living in the country.
- Already receiving full or part Age Pension from Centrelink.
- Must satisfy the income and asset test rules.
Other Groups
- Full Age Pensioners – Receive the full $3,600 increase.
- Part Age Pensioners – May receive a smaller increase depending on income and assets.
- Disability Support Pension & Carer Allowance – Not included in this rise.
Payment Schedule: When Will the Rise Start?
The $3,600 increase starts in October 2025. It will be included in your regular fortnightly Age Pension payments. Pension updates happen twice a year:
- March 2025 – Standard indexation update.
- October 2025 – $3,600 boost added.
This means retirees will see higher payments automatically from October 2025 onwards.
Quick Reference Table
| Recipient Type | Eligible for Boost? | Notes |
|---|---|---|
| Full Age Pensioners | Yes | Full $3,600 increase |
| Part Age Pensioners | Yes | Based on income/assets |
| Disability Support Pension | No | Not included |
| Carer Allowance | No | Other support may apply |
How to Make Sure You Get the Full Amount
The pension boost is automatic, but you should check:
- Your myGov account is linked to Centrelink.
- Bank account details are up to date.
- Your income and asset information is current.
If unsure, contact Centrelink to confirm your eligibility.
FAQs on the $3,600 Pension Boost
Q1: Do I need to apply for the increase?
No, it will be added automatically if you’re eligible.
Q2: Will this affect part pensioners?
Yes, but the increase may be smaller depending on income and asset tests.
Q3: Is the $3,600 boost taxable?
No, it’s part of your tax-free Age Pension.
Q4: Does this apply to Disability Support Pension?
No, this increase only applies to the Age Pension.
Q5: When will I see the new rate?
Your first updated payment will arrive in October 2025.
Final Thoughts
The $3,600 Age Pension increase in October 2025 is a significant change aimed at easing cost-of-living pressures for retirees. While not a full solution to rising prices, it provides consistent and reliable support throughout the year. Pensioners should ensure their Centrelink details are correct so they receive the full benefit without delays.