From 20 September 2025, Australian Age Pension will be adjusted to offer seniors new rates with updated eligibility thresholds to provide additional support for Australian seniors. The change is designed to provide relief for those already receiving the payment. This is called the “$890 Age Pension Increase.” Here is a summary of the increase, including critical eligibility details, payment periods, and important information for retirees.
Age Pension Rate Changes for 2025
From 20 September 2025, Age Pension rates will increase for singles as well as couples. A single pensioner will get an extra $29.70 a fortnight which brings total pension to $1,178.70. Couples will be paid a total increase of $44.80 for both, which means $888.50 for each. This is due to regular inflation indexation wage growth.
Automatic Adjustments and Payment Dates
Eligible Centrelink recipients do not need to do anything for the new rates to get, which will be fully automatic. The updated payment rates will be available by September 20, 2025 as a new payment cycle, continuing the regular fortnightly payments. Each pensioner will be able to see updated payment rates in their Centrelink account or the mobile app.
Eligibility Criteria and Means Testing
Australians can start receiving the Age Pension when they turn 67, have lived here for 10 years (and at least 5 of those years in a row), and completely satisfy the means tests. Means testing consists of both an income test and an assets test. The limits for these tests will increase in 2025: for singles, the upper asset threshold will increase to $714,500 (homeowner), and $972,500 (non-homeowner). For couples (combined), the limits will increase to $1,074,000 (homeowner), and $1,332,000 (non-homeowner). Income thresholds have also increased so some senior Australians who were just over the limit will now qualify for a least a part pension.
The Breakdown: Short Table of 2025 Payment Data
| Category | Single | Couple (each) |
|---|---|---|
| Fortnightly Rate | $1,178.70 | $888.50 |
| Annual Rate (approx.) | $30,646 | $23,101 |
| Date Increase Starts | 20 Sep 2025 | 20 Sep 2025 |
Additional Supplements and Indexation
Pensioners continue to receive the pension supplement and energy supplement and these are also part of the combined payment. Instruction for these additions will remain the same for 2025, and will continue to be paid automatically. The Age Pension is indexed to the inflation in March and September, so it will not lose value due to inflation. This provides an added value to the recipient, as they can be reassured that the value pension will not be a shock to the recipient and will be worth the same in September as it was worth in March.
What You Should Do if You’re Current or Future Pensioners
People getting the Age Pension automatically get their payments updated. No new forms or updates are needed for your profile. If you are getting close to your Age Pension qualification and your situation has changed you would use the updated Centrelink Eligibility Calculator to see if you would qualify. If you have complex situations, like the value of your assets changing, shifting between homeownership, or other complex situations, you can gather your supporting documents and ask for help.
Frequently Asked Questions
Q1: When will the new Age Pension rate payments start?
The new rate will start with the payment cycle on 20 September 2025.
Q2: What will be the minimum Age Pension eligibility age in 2025?
The minimum age will be 67, and it will have residency and means tests.
Q3: If I am already getting the Centrelink Age Pension, do I need to apply for the new rate?
No, you do not need to do anything. It will be done automatically.
