Every September, Australian pensioners await news of changes to the Age Pension. On 20 September 2025, the government introduced adjustments that affect both the amount pensioners receive and the rules that determine eligibility. These include updated payment rates, revised income and assets test thresholds, and changes to deeming rates.
For millions of seniors, these adjustments are not just technical details—they directly affect how much money lands in their bank accounts each fortnight.
Why Changes Happen in September
Centrelink pensions are reviewed twice a year—in March and September—to ensure they keep pace with inflation and average wage growth. These updates protect pensioners from losing buying power as living costs rise.
The September 2025 changes are particularly important, as higher-than-expected inflation over the past year has led to larger adjustments than usual.
New Pension Rates From September 2025
From 20 September 2025, the following fortnightly rates apply:
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Single pensioners: $1,144.30 (up by $29.70).
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Couples combined: $1,724.80 (up by $44.80).
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Each member of a couple: $862.40.
This increase translates to nearly $770 more annually for singles and $1,165 more annually for couples.
These adjustments ensure seniors have a little extra breathing room to cover rising expenses like groceries, fuel, and healthcare.
Income Test Changes
The income test determines how much pension you can receive if you have additional earnings from work or investments. From September 2025, thresholds were lifted to give pensioners more flexibility:
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Singles can earn up to $204 per fortnight without reducing their pension.
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Couples combined can earn up to $360 per fortnight before reductions apply.
Beyond these amounts, payments reduce by 50 cents for every $1 earned above the threshold.
This change means pensioners can earn a little more through part-time work without losing as much of their pension.
Assets Test Changes
The assets test also determines eligibility. It measures the value of assets such as savings, investments, and property (excluding the family home). From September 2025, thresholds increased slightly:
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Singles (homeowners): Up to $301,750 in assets without losing the full pension.
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Singles (non-homeowners): Up to $543,750.
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Couples (homeowners): Up to $451,500.
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Couples (non-homeowners): Up to $693,500.
Beyond these thresholds, pensions reduce progressively until cut-off points are reached. The September 2025 changes give seniors more room to hold assets while still receiving full or partial pension payments.
Deeming Rate Updates
Another major adjustment in September 2025 was to the deeming rates. Deeming assumes that financial assets like savings and investments earn a certain return, regardless of actual income. This simplifies the income test.
From September 2025, deeming rates remain frozen at historically low levels:
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0.25% on investments up to $60,400 (singles) or $100,200 (couples combined).
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2.25% on amounts above these thresholds.
This freeze continues to benefit pensioners, as their financial assets are assessed at lower rates, allowing many to qualify for higher pension payments.
Supplements and Extra Support
In addition to the base pension, seniors may qualify for supplements, including:
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Pension Supplement – Helps with utilities, phone, and internet costs.
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Energy Supplement – Assists with electricity and gas bills.
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Rent Assistance – For pensioners paying private rent above set thresholds.
These remain unchanged in September 2025 but continue to play a critical role in supporting low-income pensioners.
Why These Changes Matter
The September 2025 changes are more than just numbers—they impact daily life for millions of retirees.
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For singles, the extra $29.70 per fortnight means more flexibility in covering groceries or small bills.
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For couples, the combined increase helps offset rising healthcare costs.
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For working seniors, higher income test thresholds encourage part-time work without harsh penalties.
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For savers, the assets test adjustments give more breathing space to keep retirement funds intact.
In a year of persistent inflation, these updates provide some financial relief.
Planning Ahead
Seniors should take note of the changes and review their financial situation. Steps to consider include:
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Checking eligibility: Even if you were previously excluded, higher thresholds may now qualify you for part or full pension.
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Updating Centrelink records: Ensure your income, bank accounts, and assets are correctly reported.
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Seeking advice: Financial planners and Centrelink’s Financial Information Service can help optimise entitlements.
With careful planning, seniors can make the most of the September 2025 adjustments.
FAQs
What are the new Age Pension rates in September 2025?
Singles receive $1,144.30 per fortnight, and couples combined receive $1,724.80.
How much more will pensioners get?
Singles gain $29.70 extra per fortnight, while couples gain $44.80 combined.
What are the new income test limits?
Singles can earn up to $204 per fortnight, couples up to $360 per fortnight, without reducing their pension.
Did the assets test change?
Yes. Thresholds were raised slightly, allowing more retirees to qualify for full or partial pensions.
What happened to deeming rates in 2025?
They remain frozen at 0.25% and 2.25%, keeping assessments favourable for pensioners.
Click here to know more.