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 | Single – Current | Single – 20 September 2025 | Increase per fortnight |
| Maximum basic rate | $1,051.29 | $1079.70 | $28.40 |
| Maximum Pension Supplement | $83.53 | $84.90 | $1.30 |
| Energy Supplement | $14.10 | $14.10 | – |
| Total | $1148.92 | $1,178.70 | $29.70 |
Couple
| Per fortnight | Couple – Current | Couple – 20 September 2025 | Increase per fortnight |
| Maximum basic rate | $792.50 | $813.90 | $21.40 |
| Maximum Pension Supplement | $63.00 | $64 | $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 per fortnight |
| 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?
