For millions of older Australians, the Age Pension is a crucial source of financial support. Every March and September, the government reviews pension rates to ensure payments keep pace with inflation and wage growth. In September 2025, pensioners will see an increase of up to $29.70 per fortnight for singles and $44.80 per fortnight for couples combined.
These adjustments are designed to help seniors manage the rising cost of living, from groceries and fuel to medical expenses and utilities. For households already stretched thin, the September boost provides some breathing room.
Why Are Pensions Increasing?
The Age Pension is indexed twice a year, in March and September, using the greater of:
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The Consumer Price Index (CPI), which measures inflation.
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The Pensioner and Beneficiary Living Cost Index (PBLCI), which better reflects seniors’ expenses.
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A benchmark tied to male total average weekly earnings (MTAWE).
This system ensures that pensions remain fair and in line with both inflation and wage growth. In 2025, strong inflation in essentials like food and healthcare pushed rates higher, leading to the latest increase.
New Age Pension Rates From September 2025
Here are the updated fortnightly amounts effective from 20 September 2025:
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Single pensioners: Increase of $29.70 → New rate: $1,144.30 per fortnight.
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Couples (combined): Increase of $44.80 → New rate: $1,724.80 per fortnight.
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Couples (each): Around $862.40 per fortnight per person.
Over a full year, this means singles receive nearly $770 more, while couples gain about $1,165 more compared to previous rates.
Who Is Eligible?
To qualify for the Age Pension in Australia, you must meet both age and means test requirements:
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Age requirement: As of 2025, the eligibility age is 67 years for both men and women.
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Residency requirement: Must have lived in Australia for at least 10 years (with at least 5 years continuous residency).
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Income test: Pension reduces once income exceeds certain thresholds.
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Assets test: Pension also reduces if assets (excluding the family home) exceed thresholds.
These tests ensure that support is targeted toward Australians with limited income and savings.
Why the Increase Matters
For many retirees, the Age Pension is their main or only source of income. Rising costs in 2025 have placed pressure on pensioners, particularly in areas such as:
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Food – Grocery prices remain high.
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Healthcare – Out-of-pocket costs for medicine and treatment continue to rise.
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Utilities – Electricity and gas bills are higher.
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Housing – Renters face especially steep increases.
The September adjustment ensures pensions remain relevant and protect seniors’ purchasing power.
Additional Supplements
In addition to the base Age Pension, eligible seniors may also receive:
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Pension Supplement – Helps cover utilities, phone, and other regular bills.
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Energy Supplement – Assists with rising power costs.
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Rent Assistance – For pensioners paying private rent above a set threshold.
Together with the September increase, these supplements provide extra support for vulnerable households.
Challenges Pensioners Still Face
Despite the boost, many seniors argue that payments remain too low compared to real expenses. The maximum single pension rate of just over $1,144 per fortnight is below the Association of Superannuation Funds of Australia (ASFA) “comfortable standard”, which estimates retirees need far more to live without financial stress.
This gap means many pensioners will continue to cut back on essentials, rely on family support, or dip into limited savings.
Planning Around the Increase
Pensioners are advised to:
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Review their budgets to factor in the extra income.
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Check supplements eligibility to ensure they receive all possible payments.
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Monitor rent and utility costs, which can quickly erode gains from increases.
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Seek financial counselling if struggling with debt or bills.
Government services and community organisations offer free financial advice to help retirees make the most of pension adjustments.
Looking Ahead
The September 2025 increase highlights the government’s commitment to adjusting pensions regularly. However, debates continue about whether current rates are sufficient to protect seniors from poverty. Advocacy groups are calling for larger increases and automatic indexing tied more closely to real living costs for retirees.
For now, the $29.70 boost for singles and $44.80 for couples will provide meaningful, if modest, relief.
FAQs
How much is the Age Pension increase in September 2025?
Singles get $29.70 more per fortnight, while couples (combined) get $44.80 more.
What is the new fortnightly rate for singles?
From September 2025, singles receive $1,144.30 per fortnight.
Do all seniors automatically receive the increase?
Yes. Eligible Age Pensioners will see the new rates applied automatically from 20 September 2025.
What supplements are available in addition to the pension?
Pension Supplement, Energy Supplement, and Rent Assistance are available for those who qualify.
Is the Age Pension enough to cover living costs?
The increase helps, but many advocacy groups argue the pension remains below the level needed for a “comfortable” retirement.
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