The Australian Government has confirmed a pension increase starting 20 September 2025. This boost, managed by Services Australia (Centrelink), will apply to Age Pensioners, Disability Support Pension (DSP) recipients, and Carer Payment beneficiaries.
With the rising cost of living, this change is designed to help older Australians, people with disabilities, and caregivers manage essential expenses like housing, food, and healthcare. If you receive a pension or plan to apply, here’s everything you need to know about the new rates, eligibility, and payment schedule.
Why Is the Pension Increasing in September 2025?
Every March and September, pensions are reviewed and adjusted in line with:
- Consumer Price Index (CPI) – to reflect inflation.
- Pensioner and Beneficiary Living Cost Index – tracks changes in household costs.
- Wage growth – ensures pensioners benefit from national wage increases.
This September 2025 adjustment is especially important as daily costs for food, rent, utilities, and healthcare continue to rise.
Australia Pension Increase – Key Highlights
| Category | Details |
|---|---|
| Department | Services Australia (Centrelink) |
| Programs | Age Pension, Disability Support Pension, Carer Payment |
| New Rates | $1178.70 (Single), $888.50 (each partner in a couple) |
| Payment Dates | Fortnightly, starting 20 September 2025 |
| Beneficiaries | Pensioners, DSP recipients, Carers |
| Payment Method | Direct bank transfer |
| Official Website | Services Australia |
New Pension Rates from September 2025
From 20 September 2025, the new maximum fortnightly pension payments will be:
| Pensioner Type | Previous Rate | New Rate | Increase |
|---|---|---|---|
| Single | $1149.00 | $1178.70 | +$29.70 |
| Each partner in a couple | $866.10 | $888.50 | +$22.40 |
This amount includes the base pension rate, pension supplement, and energy supplement.
Updated Income and Asset Limits
The income and asset tests determine whether you receive a full or part pension. From September 2025, the thresholds will increase, making more people eligible.
Asset Test Limits for Full Pension
| Situation | Previous Limit | New Limit | Increase |
|---|---|---|---|
| Single homeowner | $314,000 | $321,500 | +$7,500 |
| Single non-homeowner | $566,000 | $579,500 | +$13,500 |
| Couple homeowners (combined) | $470,000 | $481,500 | +$11,500 |
| Couple non-homeowners (combined) | $722,000 | $739,500 | +$17,500 |
If your assets were slightly above the old limits, you may now qualify for a part pension.
Eligibility for the Pension Increase
To qualify for the September 2025 pension increase, you must:
- Be at least 67 years old (Age Pension age).
- Be an Australian resident and meet residency rules.
- Pass either the income test or the asset test (the one that gives you a higher payment will be applied).
If you already receive the pension, you don’t need to reapply. Centrelink will automatically adjust your payment.
Payment Dates – When Will You Receive the Increase?
- The new rates apply from 20 September 2025.
- Payments are made fortnightly into your nominated bank account.
- If your regular payment date falls after 20 September, you will see the increase in your next payment.
How to Make Sure You Get the Pension Increase
- Keep your Centrelink and myGov details up to date (banking, address, and contact details).
- Check your income and assets – you may now qualify for a higher payment.
- Report any financial changes to avoid overpayments.
- Use the Centrelink online calculators to estimate your new payment.
Extra Benefits Alongside the Pension
Apart from the pension increase, eligible Australians may also receive:
- Energy Supplement – to help with electricity and gas bills.
- Pension Supplement – to cover everyday living costs.
- Rent Assistance – if you pay rent and meet the eligibility rules.
FAQs – Australia Pension Increase September 2025
Q1. When will the pension increase be paid?
From 20 September 2025, all fortnightly payments will include the new rates.
Q2. Do I need to apply for the increase?
No. Payments are updated automatically if you are eligible.
Q3. How much will a single pensioner receive per fortnight?
A single pensioner will get $1178.70 per fortnight from 20 September 2025.
Q4. What is the new rate for couples?
Each partner in a couple will receive $888.50 per fortnight.
Q5. Can I qualify for a pension if I was previously ineligible?
Yes. With the higher asset and income thresholds, more people may now be eligible for a full or part pension.
Final Thoughts
The Australia Pension Increase in September 2025 is a welcome relief for retirees, carers, and people with disabilities. With higher fortnightly payments and updated thresholds, many Australians will see a boost in their financial security.