Australia Age Pension Increase Confirmed for September 2025 – New Rates Set at $1,178.70

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Australia’s Age Pension is set to get a significant increase, providing financial relief to retirees amid rising living costs. From September 20, 2025, single pensioners could receive up to $1,178.70 per two weeks, while combined payments for couples could reach $1,777.00 per two weeks.

This adjustment is part of Australia’s regular biennial indexation system, which reflects the government’s efforts to help older Australians keep pace with inflation and everyday expenses.

Key Changes in the September 2025 Age Pension Update

New Maximum Payment Amounts

  • Singles:

    • Maximum bi-weekly payment: $1,178.70 (~$30,646 annually)

    • Increase: $29.70 per two weeks

  • Couples:

    • Individual payment: $888.50 per two weeks (~$23,101 annually)

    • Joint payment: $1,777.00 per two weeks (~$46,202 annually)

    • Increase: $22.40 per person per two weeks

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Eligibility Requirements

  • Age and Residence:

    • At least 67 years of age

    • At least 10 years of residence in Australia, with a minimum of 5 years continuous residence required

  • Income Tests:

    • Singles full pension: Up to $212 per two weeks

    • Couples full pension: Up to $372 per two weeks

    • Singles partial pension: Up to $2,472.70 per two weeks

    • Couples partial pension: Up to $3,784.40 per two weeks

  • Assets Test (excluding main residence):

    • Singles full pension: $314,000

    • Singles partial pension: $686,250

    • Couples full pension: $470,000

    • Couples partial pension: $1,030,000

  • Asset limits are higher for non-homeowners, increasing flexibility for retirees who are renters or have additional properties.

Dimming Rate Adjustments

  • Assets under the threshold: 0.75%

  • Assets above the threshold: 2.75%

These changes could result in slightly lower pension amounts for retirees with higher assets, even as payments increase.

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How to Apply and Receive Payments

  • New Applicants:

    • Apply a few months before turning 67

    • Submit proof of identity, residence, income, and assets

  • Current Recipients:

    • If your information is up to date, the new rates will apply automatically

Tips to Maximise Pension Benefits

  • Work Bonus: Earn up to $300 per two weeks without affecting pension

  • Update Information: Keep income, asset, and residence information up to date

  • Financial Advice: Consult a professional to improve retirement income strategies

Frequently Asked Questions (FAQs)

  • Q: How much will the Age Pension increase?

    • Singles: $29.70 per two weeks

    • Couples: $44.80 combined per two weeks

  • Q: When will the new rates come into effect?

    • September 20, 2025

  • Q: If I’m already receiving a pension, do I have to apply?

    • No, payments will update automatically

  • Q: What effect will the dimming rate change have on pensions?

    • Income from property may be calculated at higher rates, which could reduce some payments

  • Q: Can I still receive rent assistance?

    • Yes, eligible tenants can receive 75 cents on every dollar above the threshold

  • Q: How often is the Age Pension adjusted?

    • Twice a year, in March and September

Conclusion

The September 2025 Age Pension increase provides vital support for retirees who are facing rising living costs. The new dimming rates may slightly reduce benefits for asset-rich retirees, but those with limited savings could see an entirely positive impact. Ensure the maximum pension by keeping records up to date with Services Australia.

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