The twice-yearly Age Pension indexation has now been announced with changes due to start on 20 September 2025. The tables below show the changes which affect retirees, as confirmed by the Department of Social Security (DSS) on 19 August.
The new payment rates from 20 September 2025 affect recipients of the Age Pension, Disability Support Pension, and Carer Payments. Singles can expect a total increase of $29.70 a fortnight and couples can expect a (combined) total increase of $44.80 a fortnight.
Age Pension rate increases
Single
| Per fortnight | Current | 20 September 2025 | Increase |
| Maximum basic rate | $1,051.29 | $1079.70 | $28.40 |
| Maximum Pension Supplement | $83.60 | $84.90 | $1.30 |
| Energy Supplement | $14.10 | $14.10 | – |
| Total | $1,149.00 | $1,178.70 | $29.70 |
Couple
| Per fortnight | Current | 20 September 2025 | Increase |
| Maximum basic rate | $792.50 | $813.90 | $21.40 |
| Maximum Pension Supplement | $63.00 | $64.00 | $1.00 |
| Energy Supplement | $10.60 | $10.60 | – |
| Total | $866.10 | $888.50 | $22.40 |
Upper income and asset thresholds have also increased
This will mean some people that previously just missed out on qualifying might now be eligible for a part-Age Pension and the accompanying supplements. It’s worth checking your status on the free Age Pension Eligibility Calculator and factoring in these changes. The calculator has current rates and limits but will reflect 20 September increases as they go live. There has also been an increase to the income threshold for the Commonwealth Seniors Health Card (CSHC)
Here’s how the income and assets thresholds have changed for the Age Pension.
Pension Disqualifying Income Limits
| Family Situation – Resident | Current Amount | 20 Sep 2025 | Increase per fortnight |
| Single | $2,516.00 | $2,575.40 | $59.40 |
| Couple (combined) | $3,844.40 | $3,934.00 | $89.60 |
| Illness-separated (couple combined) | $4,976.00 | $5,094.80 | $118.80 |
Pension Disqualifying Assets Limits
| Family Situation – Resident | Previous Amount | 20 Sep 2025 | Increase |
| Single, homeowner | $704,500 | $714,500 | $10,000.00 |
| Single, non-homeowner | $962,500 | $972,500 | $10,000.00 |
| Couple (combined), homeowner | $1,059,000 | $1,074,000 | $15,000.00 |
| Couple (combined), non-homeowner | $1,317,000 | $1,332,000 | $15,000.00 |
| One partner eligible (couple combined), homeowner | $1,059,000 | $1,074,000 | $15,000.00 |
| One partner eligible (couple combined), non-homeowner | $1,317,000 | $1,332,000 | $15,000.00 |
| Illness-separated (couple combined), homeowner | $1,247,500 | $1,267,500 | $20,000.00 |
| Illness-separated (couple combined), non-homeowner | $1,505,500 | $1,525,500 | $20,000.00 |
CSHC Taxable income limits
| Family Situation | Previous Amount | 20 Sep 2025 | Increase per annum |
| Single* | $99,025 | $101,105 | $2,080.00 |
| Partnered (each) | $79,220 | $80,884 | $1,664.00 |
| Couple (combined) | $158,440 | $161,768 | $3,328.00 |
| Additional amount for each dependent child of the person | $639.60 | $639.60 | – |
Will any other payments also rise?
The Commonwealth Rental Assistance (CRA) has also been increased slightly, as follows:
Rent Assistance – for payments under the Social Security Act
Maximum Payment
| Family Situation | Previous Amount | 20 Sep 2025 | Increase per fortnight |
| Single | $212.00 | $215.40 | $3.40 |
| Single, sharer | $141.33 | $143.60 | $2.27 |
| Couple | $199.80 | $203.00 | $3.20 |
| Partnered, illness-separated | $212.00 | $215.40 | $3.40 |
| Partnered, temporarily separated | $199.80 | $203.00 | $3.20 |
Rent Threshold
| Family Situation | Previous Amount | 20 Sep 2025 | Increase per fortnight |
| Single | $149.60 | $152.00 | $2.40 |
| Single, sharer | $149.60 | $152.00 | $2.40 |
| Couple | $242.40 | $246.20 | $3.80 |
| Partnered, illness-separated | $149.60 | $152.00 | $2.40 |
| Partnered, temporarily separated | $149.60 | $152.00 | $2.40 |
Rent Ceiling
| Family Situation | Previous Amount | 20 Sep 2025 | Increase per fortnight |
| Single | $432.27 | $439.20 | $6.93 |
| Single, sharer | $338.05 | $343.47 | $5.42 |
| Couple | $508.80 | $516.87 | $8.07 |
| Partnered, illness-separated | $432.27 | $439.20 | $6.93 |
| Partnered, temporarily separated | $416.00 | $422.67 | $6.67 |
Deeming Rates
From 20 September, a deeming rate of 0.75% will apply to financial assets under $64,200 for singles and $106,200 for couples combined. Assets over this amount will be deemed at a rate of 2.75%. (Previous rates were 0.25% and 2.25%). Although higher than the long-term ‘frozen’ amount, deeming rates are still below historical pre-COVID averages.
What are your next steps?
Do you need support?
Do these changes raise questions for you? If so, it may help to talk to an Age Pension Specialist. You can do so in a 30-minute consultation which will:
- Assist you with any Centrelink entitlements questions you may have.
- Help you with specific circumstances relating to your Centrelink entitlements
- Provide confidence that you understand Centrelink’s rules and their impact on your situation.
- Help you understand more about the application process.
Retirement Essentials charges $195 upfront for these consultations.
If you would like to check your Age Pension eligibility under the new rates and thresholds, you can do so using Retirement Essentials free Age Pension Eligibility Calculator. This calculator will be updated with the latest rates by 20 September.
How beneficial are these increases?
Many single households will soon be $772 better off and couple households $1165 better off per annum.
How much of a difference does this make to you?
Pension Disqualifying Assets Limits- table says 10,000 increase a fortnight should that be per annum?
Thank you for letting us know Jen, the heading has been updated.
Part of total assets was personal assets such as car/jewelries/household furniture, normally in between 10K-20K. Will this amount be calculated for deem income?
Hi Wayne, great question and thankfully the answer is no. Deeming is only applied to financial assets as they are the only kind of asset deemed to generate income as opposed to car/jewelry/furniture which do not generate income.
my husband passed away and he was the sole owner of our home in Australia I need to delete that asset from Centrelink, may I be able too and do I need to change my status to single or widow?
Hi Rita, we are sorry to hear of your loss and appreciate dealing with Centrelink is probably the last thing on your mind at this time. Centrelink will update his assets in accordance with his will, if that means everything goes to you then Centrelink will move his assets in to your name, if they are to be dispersed then it will be removed and either way you will now be assessed as a single applicant meaning a different set of thresholds and different rate of pension so there will be a recalculation done and almost certainly a new amount of pension that you will be eligible for.
We live in a country with which Australia had a reciprocal agreement. We own an apartment for more than 2 years.
We will be applying for our age pension soon.
Will our overseas apartment be exempted from assets for assessment for our age pension?
Thank you.
Hi Alison, this is a tricky situation, technically and according to the social security agreements you are supposed to be able to apply for the Age Pension from an agreement country however in the past we have tried helping customers like yourself to apply and Centrelink rejected the claim due to their conflicting rule that says you must be physically residing in Australia on the day you lodge your claim.
We have been given different explanations depending on whom we’ve spoken with including that it is assessed on a case by case basis which is of no help getting a definitive answer.
Our recommendation is to consider how important the Age Pension is to your situation and if it is crucial for your finances then we recommend returning to Australia to apply to ensure success however given this is not always as simple as it sounds if the Age Pension is not crucial then you can try to apply from where you are but know that it will be a long and difficult process that may end in being rejected and for this reason we are unable to assist because we cannot be certain we will be able to get your claim approved.