The singles Age Pension transitional rate will increase to $959.70 in 2025. This indicates a small increase for Australian retirees receiving this benefit. Special rules will continue to apply to retirees and these will help outline what to expect this year as key policies and their practical implications shift for these retirees.
Explaining the Transitional Rate
The Age Pension transitional rate applies to specific pensioners who were receiving a part pension before September 20 th 2009. It protects these recipients from being worse off after the income test adjustments were made in 2009. The transitional rate was designed for those who were marginally worse off under the new system so they could remain on a grandfathered payment. The payment only adjusts upward until it surpasses the “normal” rate.
2025 Transitional Payment Amount and Changes
Starting September 20 th 2025 the maximum transitional payment will increase to $959.70 per fortnight for singles and $774.30 for couples so $1,548.60 combined. This reflects annual indexation, $14.90 and $12.00 per fortnight respectively. The transitional payment also includes an energy supplement which is $14.10 for singles and $10.60 for couples.
| Category | Rate per Fortnight |
|---|---|
| Single | $959.70 |
| Couple (each) | $774.30 |
Differences from Standard Pension Rates
Those on transitional pensions do not get the full pension supplement under the current rules, but they may get the energy supplement. Their payment is calculated under the older income test which removes the pension by 40 cents for every dollar of income above the threshold. Under the newer rules, this amount is 50 cents. Also, transitional pensioners do not get the work bonus concession that applies to income earned from employment.
Policy Changes for 2025
For Age Pension recipients, there are relevant changes in 2025. The maximum rates of both standard and transitional Age Pensions are increased which gives a better starting income to many retirees. While, the means test and the threshold for the part pension, health card, and card entitlement have increased deeming rates which gives a slight increase in access and benefits.
Payment and Eligibility Dynamics
For the transitional rate to apply, recipients must have been on a part pension before the 2009 changes and must have been continuously eligible since then. The payment is also dependent on assessable income and assets. If they are above the cut-off, the transitional payment is cancelled. If the standard pension calculation for a recipient should ideally yield a higher amount, the system automatically switches them.
Conclusion
In 2025, the Age Pension transitional rate will still be $959.70. This continues to protect a limited group of older retirees who haven’t adjusted to the negative impacts of older reforms. Although the rate increases steadily each year, increasing eligibility demonstrates the government’s desire to control income to older Australians most impacted by provisions made over ten years ago.
Short FAQ
Q: Who gets the transitional Age Pension rate?
A: This applies to pensioners on a part pension before September 20th, 2009, who are still financially better off under the old rules.
Q: How much will singles receive in 2025?
A: They will receive $959.70 each fortnight, in addition to a $14.10 energy supplement.
Q: Will these rates last indefinitely?
A: No, transitional rates will end once standard pension amounts increase above the transitional rate, or if the recipient no longer meets the eligibility criteria.
