The Australian government has confirmed important changes to the Centrelink Age Pension from September 2025. These updates include new payment rates to reflect the rising cost of living, along with adjustments to eligibility rules that will affect thousands of retirees. For many older Australians, the Age Pension is the main source of income in retirement, so understanding these updates is essential.
Why Are the Pension Rates Changing in September 2025?
The Age Pension is reviewed twice a year, in March and September, to keep payments aligned with inflation and national wage growth. With cost-of-living pressures continuing to affect everyday expenses such as groceries, rent, and utilities, the September 2025 increase provides vital support for pensioners.
New Age Pension Rates from September 2025
From September 2025, both single and partnered pensioners will see increases in their fortnightly payments. These amounts include the base rate, pension supplement, and energy supplement.
| Category | Fortnightly Payment | Monthly Equivalent | Annual Equivalent |
|---|---|---|---|
| Single Pensioner | $1,125 approx. | $2,250 | $29,250 |
| Couple (each, combined) | $1,675 approx. | $3,350 | $43,550 |
Note: Exact amounts may differ slightly depending on the income and assets test outcomes.
Eligibility Rules in September 2025
While the qualifying pension age remains at 67 years, the income and assets test thresholds have been updated. This means some retirees who were previously ineligible may now qualify for a part pension.
- Income Test: Pensioners can earn a higher amount before their payments are reduced.
- Assets Test: The threshold for owning assets without losing full pension access has been increased slightly.
These changes aim to help retirees who have modest savings or part-time income but still need government support.
Payment Dates for the New Rates
The first round of updated payments will begin from the fortnightly cycle starting mid-September 2025. Payments are usually made every second Tuesday, but if the date falls on a public holiday, the amount is deposited earlier. Pensioners can check the Services Australia website for an updated payment calendar.
Extra Benefits for Age Pensioners
Alongside the base pension increase, retirees continue to access a wide range of concessions and additional supports:
- Pensioner Concession Card for cheaper healthcare, medicines, and transport.
- Rent Assistance for those without a home.
- Energy Supplement to help with electricity and gas bills.
- Bulk-Billed Medical Services and reduced PBS medicine costs.
These benefits are just as important as the direct cash payment, as they reduce essential living expenses.
How to Apply for the Age Pension
If you are turning 67 soon, you can apply for the Age Pension up to 13 weeks before you reach pension age. Applications can be made online through myGov, by phone, or in person at a Centrelink office. You will need to provide proof of identity, residency, and details of your income and assets.
Final Thoughts
The September 2025 Age Pension update brings a welcome boost for Australia’s retirees. With higher fortnightly payments, updated eligibility thresholds, and continuing access to extra concessions, the system aims to provide stability during a time of rising living costs. Pensioners are encouraged to review their entitlements, check upcoming payment dates, and claim all additional benefits available to them.