Australia’s Age Pension provides essential financial assistance to retirees, ensuring they have a steady income during their retirement years.
As the cost of living continues to rise, the 2025 Age Pension rates have been adjusted to help recipients manage their expenses.
The upcoming changes, effective from March 20, 2025, are expected to benefit thousands of Australian retirees, ensuring that they can continue to live with financial security.
Changes in Age Pension Rates (March to September 2025)
The government has announced a slight increase in Age Pension rates for individuals and couples, which will help offset the rising cost of living. These changes will come into effect on March 20, 2025, and will remain in place until September 19, 2025.
Here’s a breakdown of the new rates:
| Recipient | New Rate (Per Fortnight) | Annual Amount (Approx.) |
|---|---|---|
| Single | $1,149.00 | $29,874 |
| Couple (Each) | $866.10 | $22,519 |
| Couple (Combined) | $1,732.20 | $45,037 |
| Couple Separated Due to Illness | $2,298.00 | $59,748 |
The increase in the single rate is $4.60 per fortnight, while the couple rate increases by $7.00 per fortnight, adding to the overall financial support for retirees. For couples separated due to illness, each individual will receive the full single rate.
How the Age Pension Rate is Broken Down
To better understand the increase, let’s break down the components of the Age Pension:
| For Single Person | 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 |
| For Couple (Each) | Amount | Increase |
|---|---|---|
| Maximum Base Rate | $792.50 | $3.20 |
| Maximum Pension Supplement | $63.00 | $0.30 |
| Energy Supplement | $10.60 | – |
| Total (per fortnight) | $866.10 | $3.50 |
For couples living together, the increase is $7.00 per fortnight, which is a $3.50 increase for each individual.
Eligibility Criteria for the Age Pension
To qualify for the Age Pension, individuals must meet both residency and age requirements, along with passing an income and assets test.
The age requirement for the full Age Pension is 67 years, and applicants must also be Australian citizens or permanent residents.
- Income test: The income limit for a single person is approximately $212 per fortnight, while for a couple, it’s $372 per fortnight.
- Assets test: For a single person, the asset limit is $314,000 for homeowners and $566,000 for non-homeowners. For a couple, the limit is $470,000 for homeowners and $722,000 for non-homeowners.
For those exceeding these limits, they may still qualify for a part pension based on their income and assets.
When is the Next Age Pension Increase?
After September 19, 2025, the next evaluation will be based on economic factors, including changes in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings.
However, increases are not guaranteed. For example, the Age Pension did not increase in September 2020 due to low inflation, marking the first instance since 1997 that there was no increase.
How to Qualify for the Age Pension
To qualify for the Age Pension, individuals need to meet the following requirements:
- Age Requirement: Applicants must be at least 67 years old.
- Residency: Applicants must be Australian citizens or permanent residents.
- Income and Assets Test: Applicants must pass both tests to be eligible for either the full or part Age Pension.
The assets test and income test thresholds are adjusted every March and September to reflect changes in the cost of living.
The Age Pension increase starting March 20, 2025, provides crucial financial support to retirees facing rising living costs.
By understanding the eligibility criteria and payment structure, recipients can better plan their finances and enjoy the additional relief provided by these increases.
As the next increase is set for September 2025, retirees should stay updated on changes to maximize their benefits.
FAQs
How much will the Age Pension increase in 2025?
The Age Pension will increase by $4.60 per fortnight for a single person and $7.00 per fortnight for a couple.
When will the next Age Pension increase occur?
The next increase will likely take place September 19, 2025, following an evaluation of the Consumer Price Index (CPI).
Can I get the Age Pension if my income exceeds the threshold?
If your income exceeds the threshold, you may still qualify for a part Age Pension, depending on your total income and assets.