The Age Pension is an essential financial support system for many retirees in Australia. Despite the growth in superannuation over the years, the Age Pension remains a crucial source of income for Australian seniors.
In response to inflation and the rising cost of living, the Australian government has announced increases in the Age Pension rates for the period March 2025 to September 2025. Here’s everything pensioners need to know about these new changes.
Age Pension Rate Changes for March 2025 to September 2025
Starting from March 20, 2025, the maximum full Age Pension will increase by $4.60 per fortnight for a single person, and $7.00 combined ($3.50 per person) per fortnight for couples.
These changes are designed to provide additional financial support for Australians receiving the Age Pension.
Here’s a breakdown of the updated pension rates:
| Pensioner Type | Rate Per Fortnight | Annual Amount | Increase Per Fortnight |
|---|---|---|---|
| Single Pensioner | $1,149.00 | $29,874 | $4.60 |
| Couple (each) | $866.10 | $22,519 | $3.50 |
| Couple (combined) | $1,732.20 | $45,037 | $7.00 |
| Couples separated due to illness (combined) | $2,298.00 | $59,748 | $7.00 |
These increases will help offset the growing expenses that pensioners face due to inflation and other financial pressures.
Age Pension Breakdown: Key Components
The Age Pension is divided into different components that contribute to the total amount pensioners receive. The breakdown of the Age Pension for a single person and couples living together is as follows:
For a Single Person:
| Component | Amount | Increase |
|---|---|---|
| Maximum Base Rate | $1,051.30 | $4.20 |
| Maximum Pension Supplement | $83.60 | $0.40 |
| Energy Supplement | $14.10 | – |
| Total Per Fortnight | $1,149.00 | $4.60 |
| Annual Total | $29,874 | $119.60 |
For a Couple Living Together:
| Component (each) | Amount | Increase | Amount (combined) | Increase (combined) |
|---|---|---|---|---|
| Maximum Base Rate | $792.50 | $3.20 | $1,585.00 | $6.40 |
| Maximum Pension Supplement | $63.00 | $0.30 | $126.00 | $0.60 |
| Energy Supplement | $10.60 | – | $21.20 | – |
| Total Per Fortnight | $866.10 | $3.50 | $1,732.20 | $7.00 |
| Annual Total | $22,519 | $91.00 | $45,037 | $182.00 |
Eligibility Criteria for the Age Pension
To qualify for the Age Pension, applicants must meet certain age, residency, and financial requirements:
Age and Residency Criteria:
- Age: Must be at least 67 years old (this may vary depending on birth year).
- Residency: Must be an Australian citizen or legal resident and have lived in Australia for at least 10 years after turning 18.
Income Test:
- Single Person: To qualify for the full Age Pension, income must be below $212 per fortnight.
- Couple: Combined income must be below $372 per fortnight.
Asset Test:
- Single Person (Owns Home): Assets must be below $314,000.
- Single Person (Rents): Assets must be below $566,000.
- Couple (Owns Home): Combined assets must be below $470,000.
- Couple (Rents): Combined assets must be below $722,000.
How the Age Pension Affects Couples
If only one member of a couple is eligible for the Age Pension, both individuals will still be assessed as a couple for the income and asset tests. In such cases, the eligible person will receive half of the combined couple rate.
Example:
- If one partner qualifies for the full Age Pension and the other does not (e.g., a 62-year-old spouse), the eligible partner will receive half of the couple rate.
When Is the Next Age Pension Increase?
The next Age Pension increase is expected on September 20, 2025, based on changes in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings.
The Pensioner and Beneficiary Living Cost Index will also be used to evaluate the increase. However, changes are not guaranteed every year.
How Often Is the Age Pension Paid?
The Age Pension is generally paid fortnightly, but pensioners may apply to receive weekly payments if they are:
- Homeless or at risk of becoming homeless.
- Struggling with money management.
Can Pensioners Get Rent Assistance?
Yes, Age Pensioners may be eligible for rent assistance if they pay rent above a certain threshold. Rent assistance is available if you pay:
- $149.00 or more per fortnight (for single pensioners).
- $241.40 or more per fortnight (for couples).
The Age Pension rates from March 2025 to September 2025 will provide significant increases, but pensioners should be aware of the eligibility criteria, potential changes, and available support.
It’s crucial to stay informed about the policies and plan finances accordingly to ensure financial security during retirement.
FAQs
When will the next Age Pension increase happen?
The next increase will take place on September 20, 2025.
How much will the Age Pension increase in March 2025?
The Age Pension will increase by $4.60 per fortnight for singles and $7.00 for couples.
How do I qualify for the full Age Pension?
To qualify, you must meet age, residency, and financial requirements based on the income and asset tests.