Imagine checking your bank account and spotting an extra $29.70 every two weeks. That’s the promise for many Australian retirees under the latest Centrelink updates. But hold on—not everyone will cheer. Starting September 20, 2025, tweaks to deeming rates could trim payments for those with bigger savings. If you’re on the Age Pension, these changes hit your wallet directly. Let’s break it down simply so you can plan ahead and protect your retirement nest egg.
Why Age Pension Rates Are Shifting in September 2025
Centrelink adjusts payments twice a year to match rising costs like groceries and rent. This round factors in inflation and keeps the system fair.
The big news? Indexation bumps up the maximum pension. Singles get $29.70 more per fortnight—that’s about $772 annually. Couples see $22.40 each, or $44.80 combined.
Deeming rates also rise after a five-year freeze. This recalibrates how investments count as income. The goal: Support those who need it most while ensuring long-term sustainability.
Who Could See a Pension Boost?
Not all changes spell trouble. Many retirees will pocket the full indexation rise. Here’s who benefits most.
Low-Asset Retirees Relying on Full Pension
If your savings stay under the income and assets tests, expect the maximum bump. Think singles with under $314,000 in total assets (homeowner) or couples under $470,000.
For example, a single homeowner with modest super and no big investments? Your fortnightly payment jumps from $1,148.80 to $1,178.70—pure gain.
Rent Assistance sweetens it too. Singles max out at $215.40 per fortnight, up from previous levels. This covers soaring housing costs in cities like Sydney or Melbourne.
Tips to Maximize Your Increase
- Track everyday expenses: Use the extra cash for utilities or health bills that have spiked 5-7% this year.
- Pair with super withdrawals: Strategically draw from super to stay under income thresholds.
- Claim extras: Don’t forget the Pension Supplement ($83.60 fortnightly for singles) if eligible.
Who Might Face a Pension Cut?
The flip side stings for savers. Higher deeming rates mean Centrelink assumes your assets earn more—potentially slashing your payout.
How Deeming Hikes Hit Harder
Deeming treats all financial assets (like bank accounts or shares) as generating steady income. The rate jump adds 0.5% across the board, pushing up your “deemed” earnings.
A single with $100,000 in assets? Previously, deemed income was around $1,940 yearly. Now, it’s $2,225— a $285 hit. At $0.50 pension cut per $1 over the free area, that could mean $7 less per fortnight.
Wealthier retirees feel it most. About 25% of the 2.65 million pensioners may see offsets or drops.
| Scenario | Assets | Old Deemed Income (Annual) | New Deemed Income (Annual) | Potential Pension Impact (Fortnightly) |
|---|---|---|---|---|
| Single, Low Assets ($50,000) | $50,000 | $125 | $375 | +$29.70 (full indexation) |
| Single, Mid Assets ($80,000) | $80,000 | $350 | $700 | +$15 (partial offset) |
| Couple, High Assets ($150,000 combined) | $150,000 | $600 | $1,350 | -$5 (net cut after indexation) |
Note: Impacts vary by full income test. Consult Services Australia for your case.
Breaking Down the 2025 Deeming Rate Changes
Deeming simplifies things—no need to report exact investment returns. But the updates make it tougher for asset-heavy portfolios.
New Thresholds and Rates at a Glance
From September 20:
- Lower rate: 0.75% on first $64,200 (singles) or $106,200 (couples combined).
- Upper rate: 2.75% on anything above.
This assumes safe, low-risk earnings. Real returns from shares or property? They don’t count extra—unless over the rate, which rarely happens now with high interest.
Real-Life Example: Sarah’s Story
Meet Sarah, a 68-year-old widow with $70,000 in term deposits. Her old deemed income: $481 yearly at 0.25%/2.25%. New: $641 at 0.75%/2.75%—$160 more.
That translates to an $8 fortnightly pension dip, wiping out half her indexation gain. Ouch.
Payment Dates and How It Rolls Out
No action needed—the changes kick in automatically from September 20, 2025. Your next payment after that date reflects the updates.
Fortnightly schedule stays the same: Expect deposits around the 1st and 15th. Check your myGov account for confirmations.
Services Australia handles the math. But double-check statements to spot errors early.
Steps Pensioners Should Take Right Now
Don’t wait for the bill shock. Proactive moves can soften the blow or lock in gains.
- Log into myGov: Review your assets and income via Centrelink’s portal. Spot deeming triggers fast.
- List your finances: Tally bank balances, super, shares. Use free tools like the Services Australia deeming calculator.
- Talk to pros: Book a financial planner session—many offer free Centrelink reviews.
- Adjust investments: Shift to non-deemed assets like your home or personal items. Or time super access wisely.
- Budget smarter: Factor in utilities up 6% and meds. Apps like Pocketbook help track it.
Pro tip: If married, combine assets strategically—couples get higher thresholds.
Frequently Asked Questions (FAQs)
1. When do the September 2025 Age Pension changes start?
They begin September 20, 2025. Your payment from that fortnight onward includes the updates—no reapplication required.
2. Will the deeming rate change affect my full pension?
If your assets are low, no. But if over thresholds, it could reduce your rate by up to $0.50 per $1 of extra deemed income.
3. How much is the maximum Age Pension now?
Singles: $1,178.70 per fortnight. Couples: $888.50 each. Includes supplements and energy aid.
4. Can I avoid a pension cut from deeming hikes?
Yes—spend down to thresholds, invest in super (often exempt), or gift assets early (watch gifting rules).
5. Who should I contact for personalized advice?
Services Australia at 132 300 or a certified financial adviser. Free sessions via National Seniors Australia too.
6. Does this impact other benefits like Rent Assistance?
Yes—max singles rate rises to $215.40 fortnightly, helping offset housing squeezes.
Wrapping Up: Secure Your Retirement Edge Today
The September 2025 Age Pension tweaks offer a lifeline for many—$772 extra yearly for full recipients—while challenging savers to rethink strategies. It’s a reminder: Fairness means trade-offs, but knowledge is power.
Don’t let surprises derail your golden years. Review your setup now, chat with an expert, and celebrate the wins. Your future self will thank you. What’s your first step? Head to myGov and check those assets.