The Australian Government has confirmed a significant Age Pension rise from 20 September 2025, providing millions of retirees with extra financial relief. This update comes as part of the biannual indexation process, designed to keep pensions in line with inflation and wage growth.
What’s Changing From September 20, 2025?
From September, Age Pension recipients will see their payments increase automatically. No application is required, and Centrelink will update accounts with the new amounts.
- Singles (maximum full rate): Increasing from $1,149.00 to $1,178.70 per fortnight
- Couples (each): Increasing from $866.10 to $888.50 per fortnight
- Couples (combined): Increasing from $1,732.00 to $1,777.00 per fortnight
This means:
- Singles will gain $29.70 extra per fortnight
- Couples will gain $44.80 extra per fortnight combined
- Couples can expect more than $1,700 extra per year
Quick Table: Age Pension Rates From 20 September 2025
| Pension Type | New Rate (Fortnightly) | Increase | Annual Total |
|---|---|---|---|
| Single (max rate) | $1,178.70 | +$29.70 | $30,646 |
| Couple (each) | $888.50 | +$22.40 | $23,101 |
| Couple (combined) | $1,777.00 | +$44.80 | $46,202 |
Why the Pension Is Increasing
The government adjusts the Age Pension twice a year — in March and September. Rates are reviewed against:
- The Consumer Price Index (CPI)
- The Pensioner and Beneficiary Living Cost Index (PBLCI)
- Average wages
This ensures retirees can maintain their purchasing power despite rising living costs.
Income and Asset Test Updates
Alongside payment increases, thresholds for income and assets are also rising:
- Singles can now earn up to $218 per fortnight and still receive the full pension.
- Couples can earn up to $380 per fortnight combined.
- Asset limits have been lifted, allowing retirees to hold more savings and property before their pension reduces.
Important Note on Deeming Rates
For some pensioners (around 180,000 people), changes to deeming rates on investments may affect overall payments. However, most retirees will still benefit from the September increase.
What’s Next?
The next pension review is scheduled for March 2026. While adjustments usually happen every six months, increases depend on economic conditions, meaning they are not always guaranteed.
FAQs
1. When will the Age Pension increase take effect?
From 20 September 2025, payments will automatically reflect the higher rates.
2. Do I need to apply for the pension increase?
No. The update happens automatically for all eligible recipients.
3. How much extra will single pensioners receive?
Single pensioners will receive an extra $29.70 per fortnight, or about $772 annually.
4. How much extra will couples receive?
Couples will receive $44.80 more per fortnight combined, adding up to over $1,700 per year.
5. How often does the government review pension payments?
Twice a year — in March and September — using CPI, wage data, and living cost indexes.
Conclusion
The September 2025 Age Pension increase delivers meaningful relief for retirees, with singles and couples both benefiting from higher fortnightly payments and updated thresholds. While rising living costs remain a challenge, these adjustments reaffirm the government’s commitment to supporting older Australians. Pensioners are encouraged to check their Centrelink online account or app for updated details.