Good news for Australian pensioners! Starting September 20, 2025, Centrelink is boosting payments for Age Pension, Disability Support Pension (DSP), and Carer Payment recipients. With living costs like rent, groceries, and utilities on the rise, this increase aims to ease the financial burden for retirees, carers, and people with disabilities.
Here’s a clear, concise guide to the new rates, eligibility, payment dates, and more to help you stay informed.
Why Are Pensions Increasing in 2025?
Centrelink adjusts pension payments twice a year—in March and September—to keep up with inflation and rising costs. These updates are based on:
- Consumer Price Index (CPI): Tracks inflation trends.
- Pensioner and Beneficiary Living Cost Index: Reflects household expenses.
- Wage Growth: Ensures pensions align with national wage increases.
This September 2025 boost is especially timely, as everyday expenses continue to climb, making it harder for many to make ends meet.
New Pension Rates for September 2025
Starting September 20, 2025, pensioners will see higher fortnightly payments. Here’s how the rates are changing:
| Pensioner Type | Previous Rate (Fortnightly) | New Rate (Fortnightly) | Increase |
|---|---|---|---|
| Single | $1,149.00 | $1,178.70 | +$29.70 |
| Each Partner in a Couple | $866.10 | $888.50 | +$22.40 |
Note: These amounts include the base pension, Pension Supplement, and Energy Supplement. The increase will automatically apply to eligible recipients.
Updated Income and Asset Limits
To qualify for a full or part pension, your income and assets must fall within Centrelink’s thresholds. Good news: these limits are increasing in 2025, potentially making more people eligible.
New 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 |
If your assets or income were just over the previous limits, you might now qualify for a full or part pension. Check your eligibility via myGov.
Who Qualifies for the Pension Increase?
To receive the September 2025 pension increase, you must meet these criteria:
- Age: Be at least 67 for the Age Pension.
- Residency: Be an Australian resident and meet residency requirements.
- Income or Asset Test: Pass one of these tests (Centrelink applies the one that gives you the higher payment).
If you’re already receiving a pension, you don’t need to reapply—the increase will automatically reflect in your payments.
When Will You Get the Increased Payments?
The new rates kick in on September 20, 2025. Payments are made fortnightly and deposited directly into your bank account. If your regular payment date falls after September 20, you’ll see the boosted amount in your next payment.
How to Ensure You Receive the Increase
To make sure you get the correct payment, follow these steps:
- Update Your Details: Keep your bank, address, and contact info current on myGov.
- Report Changes: Notify Centrelink of any changes in income or assets to avoid overpayments.
- Use Online Tools: Check your eligibility and estimate payments with Centrelink’s online calculators.
- Contact Centrelink: If you’re unsure about your status, reach out via myGov or phone.
Extra Benefits You Might Qualify For
Beyond the pension increase, you may be eligible for additional support:
- Energy Supplement: Helps cover electricity and gas bills.
- Pension Supplement: Assists with daily living costs.
- Rent Assistance: Available if you pay rent and meet eligibility rules.
Check your myGov account or contact Centrelink to see what extras you can claim.
FAQs About the Australia Pension Increase 2025
1. When does the pension increase start?
The new rates begin on September 20, 2025, and will appear in your next fortnightly payment.
2. Do I need to apply for the pension increase?
No, the increase is automatic for eligible Age Pension, DSP, and Carer Payment recipients.
3. How much will single pensioners get per fortnight?
Single pensioners will receive $1,178.70 per fortnight starting September 20, 2025.
4. What’s the new pension rate for couples?
Each partner in a couple will get $888.50 per fortnight, an increase of $22.40.
5. Can I qualify if I was previously ineligible?
Yes, higher income and asset thresholds mean more people may now qualify for a full or part pension.
6. How do I check my pension eligibility?
Log into myGov, link your Centrelink account, and use the online tools to check your status.
Final Thoughts
The September 2025 pension increase is a lifeline for Australian retirees, carers, and people with disabilities. With higher fortnightly payments and expanded eligibility thresholds, this boost offers real relief amid rising living costs. Make sure your Centrelink details are up to date, explore extra benefits, and enjoy a bit more financial breathing room starting September 20!