From 20 September 2025, older Australians will see higher Age Pension payments and changes to superannuation rules. This is part of the government’s plan to help retirees cope with inflation and rising living costs.
More than 2.5 million Australians receive the Age Pension, and these updates aim to give them better financial security and dignity in retirement.
What’s Changing in the Age Pension September 2025 Update
The government adjusts the Age Pension every March and September to keep up with the cost of living. The September 2025 changes include:
- Increase in the maximum basic pension rate for both singles and couples.
- Updated income and asset test limits so more people can qualify.
- A slight rise in supplementary payments (Energy Supplement + Pension Supplement).
- Adjusted superannuation income thresholds for deeming rules.
These adjustments make sure pensioners do not lose spending power when prices go up.
New Fortnightly Age Pension Rates – September 2025
The following table shows the new payments from 20 September 2025:
| Recipient Type | New Base Rate (Fortnightly) | Supplements (Energy + Pension) | Total Payment (Fortnightly) |
|---|---|---|---|
| Single Pensioner | $1,070.20 | $86.30 | $1,156.50 |
| Couple (each) | $807.60 | $65.10 | $872.70 |
| Couple (combined) | $1,615.20 | $130.20 | $1,745.40 |
How it’s calculated:
The Age Pension is indexed using the Consumer Price Index (CPI), the Pensioner and Beneficiary Living Cost Index (PBLCI), or Male Total Average Weekly Earnings (MTAWE) — whichever is highest.
Updated Income and Asset Test Limits
Your pension depends on how much you earn (income test) and what you own (asset test).
Income Test (Full Pension)
- Single: Under $204 per fortnight.
- Couple (combined): Under $360 per fortnight.
Asset Test (Full Pension)
- Single homeowner: Under $301,750 in assets.
- Couple homeowners: Under $451,500 in assets.
If your income or assets are higher, you may still get a part pension.
How Superannuation Affects Your Pension
Superannuation (super) is part of your retirement savings. The money you take out (drawdown) is counted as income, and the balance in your account is counted as an asset.
The September 2025 update increases the income and asset limits, which means:
- People with moderate super balances may now qualify for a part pension.
- Some retirees may receive a higher pension rate if they manage withdrawals carefully.
Tips to Manage Pension and Super Together
To make the most of your pension and superannuation:
- Talk to a Centrelink Financial Information Services officer for free advice.
- Use income drawdown strategies to keep payments under the income test limit.
- Keep total assets within the new thresholds to avoid pension cuts.
- If on a part pension, report your income fortnightly to Centrelink.
- Combine super withdrawals with tax concessions for seniors.
Why These Changes Matter
Australia’s cost of living has been rising for essentials like groceries, housing, and healthcare. Without regular indexation, pensioners would lose purchasing power. The September 2025 Age Pension increase:
- Helps pensioners keep up with inflation.
- Supports financial independence for seniors.
- Ensures retirees can pay for essential services without financial stress.
The Age Pension September 2025 update is a positive step for Australian retirees. With higher payments, updated income and asset limits, and revised superannuation rules, seniors can enjoy a more stable and comfortable retirement.
By understanding the changes and planning your superannuation withdrawals wisely, you can maximise your pension and maintain financial security in the years ahead.
These updates show the government’s commitment to supporting seniors in a changing economy — ensuring retirement remains dignified, independent, and financially manageable.
FAQs
When will the new Age Pension rates take effect?
They start from 20 September 2025. Payments will update automatically in your next scheduled fortnightly payment.
How much more will I get after this update?
Single: About $19.60 more per fortnight.
Couple (combined): About $34.80 more per fortnight.
Do I need to apply for the increase?
No. If you are eligible, Centrelink will automatically update your payment amount.