The Australian Government has confirmed a pension increase from 20 September 2025. This adjustment will benefit Age Pensioners, Disability Support Pension (DSP) recipients, and people receiving the Carer Payment.
With the rising cost of living, this update aims to give extra financial support to retirees, people with disabilities, and caregivers struggling with essential costs like housing, food, energy, and medical bills. If you already receive a pension, the increase will be applied automatically.
In this guide, we’ll cover everything you need to know about the September 2025 pension increase—including new payment rates, eligibility rules, asset limits, and payment dates.
Why Is the Pension Increasing in September 2025?
Every March and September, the Australian Government reviews pensions to ensure payments reflect changes in the economy and cost of living. Adjustments are based on:
- Consumer Price Index (CPI): Keeps pensions in line with inflation.
- Pensioner and Beneficiary Living Cost Index: Tracks changes in household expenses.
- Wage Growth: Ensures pensioners benefit when wages rise nationally.
The September 2025 increase is especially important as households continue to face higher rent, energy prices, and grocery costs.
Key Highlights – Pension Increase 2025
Category | Details |
---|---|
Department | Services Australia (Centrelink) |
Programs | Age Pension, Disability Support Pension, Carer Payment |
New Rates | $1178.70 (Single), $888.50 (Couple – each) |
Payment Dates | Fortnightly, from 20 September 2025 |
Beneficiaries | Age Pensioners, DSP recipients, Carers |
Payment Method | Direct bank transfer |
Official Website | Services Australia |
New Pension Rates from 20 September 2025
Here are the updated maximum fortnightly pension payments:
Pensioner Type | Previous Rate | New Rate | Increase |
---|---|---|---|
Single | $1149.00 | $1178.70 | +$29.70 |
Each partner in a couple | $866.10 | $888.50 | +$22.40 |
These amounts include the base pension rate, the pension supplement, and the energy supplement.
Updated Income and Asset Limits
Eligibility for a full or part pension depends on income and asset tests. From September 2025, higher thresholds mean more Australians may qualify.
Asset Test Limits for Full Pension
Situation | Previous Limit | New Limit | Increase |
---|---|---|---|
Single homeowner | $314,000 | $321,500 | +$7,500 |
Single non-homeowner | $566,000 | $579,500 | +$13,500 |
Couple homeowners (combined) | $470,000 | $481,500 | +$11,500 |
Couple non-homeowners (combined) | $722,000 | $739,500 | +$17,500 |
Tip: If your assets were slightly above the old limits, you may now qualify for a part pension.
Who Is Eligible for the Pension Increase?
To benefit from the new pension rates, you must:
- Be 67 years or older (Age Pension age).
- Be an Australian resident and meet residency requirements.
- Pass either the income test or asset test (whichever gives you a higher entitlement).
If you already receive a pension, you do not need to apply. Centrelink will update your payment automatically.
Payment Dates – When Will You Get the Increase?
- The new rates start from 20 September 2025.
- Payments are made fortnightly into your nominated bank account.
- If your regular payment date falls after 20 September, you’ll notice the increase in your next payment.
How to Make Sure You Receive the Increase
- Update details: Keep your Centrelink and myGov information (bank account, address, phone) accurate.
- Check income and assets: Use Services Australia calculators to see if you now qualify for a higher rate.
- Report changes: Always notify Centrelink about income or asset changes to avoid overpayments.
- Seek help: Contact Centrelink if you’re unsure about your eligibility.
Extra Benefits for Pensioners
In addition to the pension increase, eligible Australians may also access:
- Energy Supplement – to help with electricity and gas bills.
- Pension Supplement – to cover everyday essentials.
- Rent Assistance – extra support if you rent privately or in community housing.
FAQs – Pension Increase September 2025
Q1. When will the new pension rates apply?
The increase starts from 20 September 2025.
Q2. Do I need to apply for the increase?
No. If you already receive a pension, Centrelink will adjust it automatically.
Q3. How much will a single pensioner receive per fortnight?
A single pensioner will receive $1178.70 per fortnight from September 2025.
Q4. What is the new payment for couples?
Each partner in a couple will get $888.50 per fortnight.
Q5. Can I now qualify if I was previously ineligible?
Yes. With the higher income and asset thresholds, more people may qualify for a part or full pension.
Q6. How do I check my new payment amount?
You can log in to myGov or use Centrelink’s payment estimator tools.
Q7. Will rent assistance also increase?
Rent assistance is reviewed separately but may increase in line with cost-of-living adjustments.
Final Thoughts
The September 2025 pension increase is a positive step for older Australians, carers, and people with disabilities. With higher payments and updated income/asset limits, many households will feel some relief from rising living costs.
If you’re already a pension recipient, you don’t need to do anything—your new rate will be applied automatically. But if you were previously ineligible, now is the time to re-check your eligibility and apply if you qualify.