On 20 September 2025, the Australian Government increased key pension payments, including the Age Pension, Carer Payment, and Disability Support Pension. If you receive any of these, you’ll see more in your fortnightly payment — plus updates to the rules around income from savings and assets.
What Are the New Pension Increases
- Single pensioners will gain about $29.70 extra per fortnight.
- Couples (both members together) will see a combined increase of $44.80 per fortnight (around $22.40 each).
These changes are part of the regular indexation process, helping payments keep up with inflation and rising living costs.
Updated Pension Rates (20 Sept 2025 – 19 Mar 2026)
| Recipient Type | Fortnightly Pension (Full Rate) | Approx. Annual Equivalent |
|---|---|---|
| Single person (full pension) | ~$1,178.70 | ~$30,646 |
| Couple (each person) | ~$888.50 | ~$23,101 per person / ~$46,202 combined |
These totals include supplements such as the energy payment.
Other Key Changes Beyond the Base Rates
- Deeming rates are increasing:
From 20 September, financial assets will be assessed using higher deeming rates of 0.75% (lower) and 2.75% (upper). This affects how much interest income your savings are assumed to generate, which in turn influences your pension. - Income and asset tests have updated thresholds. The limits for how much you can earn or own before your pension reduces have risen, meaning some who previously missed out may now qualify.
- Transitional pension rates will also see adjustments for those still eligible under older rules.
Who Benefits — And Who May Lose
| Group | Likely Outcome |
|---|---|
| Full-pensioners (singles) | Clear gain — the increase applies directly. |
| Couples at full rate | Both members benefit, combined payment more substantial. |
| Part-rate pensioners | Smaller or no increases depending on income/assets. Deeming changes may reduce benefits. |
| Those just over test limits | May now qualify for a part-pension due to adjusted thresholds. |
FAQ
1. Do I need to reapply or contact Centrelink?
No. If you already receive the pension, the increase is automatic.
2. What are deeming rates and why do they matter?
Deeming rates estimate how much income your assets generate. Higher rates can reduce your pension if you have savings or investments.
3. What are the new income and asset thresholds?
They’ve risen in line with inflation, which may open eligibility for more people.
4. How often do pensions increase?
Twice a year — in March and September — based on inflation, wage growth, and living costs.
5. Will this affect other payments?
Yes, some other income support payments are adjusted at the same time, and deeming rate changes affect multiple programs.
Key Takeaway
From 20 September 2025, Age Pension, Carer Payment, and Disability Support Pension recipients will see higher payments. Singles get about $29.70 more per fortnight, while couples get about $44.80 combined. However, changes to deeming rates may reduce benefits for those with significant assets.
Overall, most pensioners will see more money in their accounts, with some part-pensioners possibly gaining new eligibility under the updated thresholds.