The Age Pension remains one of the most important supports for older Australians, helping millions manage living costs during retirement. With the September 2025 indexation update, new payment rates, income thresholds, and asset test limits have been confirmed. These changes are crucial for retirees to understand, as even small adjustments can determine whether someone qualifies for a full pension, part pension, or no pension at all.
Why the Update Matters
Each year, the government reviews Age Pension payments twice every March and September to ensure they reflect inflation and wage growth. Alongside the payment increases, changes to income and asset test thresholds mean that some retirees may newly qualify for support, while others may lose eligibility. Knowing these thresholds is essential to planning finances effectively.
New Age Pension Rates from September 2025
From 20 September 2025, pension payments will rise to help offset cost-of-living pressures. Both singles and couples will receive higher fortnightly amounts, including supplements.
Table: New Age Pension Rates – Effective 20 September 2025
| Recipient Type | Previous Rate (per fortnight) | New Rate (per fortnight) | Increase |
|---|---|---|---|
| Single | $1,116.30 | $1,142.40 | +$26.10 |
| Couple (combined) | $1,681.00 | $1,720.40 | +$39.40 |
These increases include the basic pension, maximum pension supplement, and energy supplement.
Updated Income Test Limits
The income test determines how much a pensioner can earn before their Age Pension is reduced. The new thresholds from September 2025 are as follows:
- Singles can earn up to $212 per fortnight before their pension starts reducing.
- Couples (combined) can earn up to $372 per fortnight before their pension is affected.
- Beyond these limits, the pension reduces by 50 cents for every $1 earned over the threshold.
This ensures that seniors with part-time work or investment income still benefit but at a reduced rate.
Updated Asset Test Limits
The asset test also plays a major role in determining pension eligibility. Assets include investments, vehicles, and property (excluding the family home). The updated thresholds for September 2025 are:
Table: Asset Test Limits – September 2025
| Situation | Full Pension (max assets) | Part Pension (cut-off) |
|---|---|---|
| Single, homeowner | $301,750 | $686,250 |
| Single, non-homeowner | $543,750 | $928,250 |
| Couple, homeowners | $451,500 | $1,031,000 |
| Couple, non-homeowners | $693,500 | $1,273,000 |
These adjustments allow more retirees to access at least a part pension.
What It Means for Retirees
For many retirees, the September update means slightly more money in their pocket and potentially new eligibility for those who were previously above the thresholds. Singles will now receive an extra $26.10 per fortnight, while couples combined will receive $39.40 more. For those just under the new asset or income limits, this could mean gaining access to the pension for the first time.
Planning Ahead
Retirees are encouraged to regularly review their income and assets to ensure they are receiving the maximum benefit possible. Even small adjustments to superannuation drawdowns, investments, or savings can change eligibility. Financial advisers and Centrelink’s Financial Information Service can provide tailored guidance.
Conclusion
The 2025 Age Pension update brings higher rates, expanded income and asset thresholds, and broader access to part payments for seniors. With living costs still rising, these adjustments are designed to offer relief and ensure fairness. Pensioners should check their eligibility from 20 September 2025 to make sure they are receiving the correct entitlements.