The Australian Government has officially released updated pension rates that will take effect this week. These changes are part of the bi-annual pension indexation process, which adjusts payments in line with the rising cost of living and wage growth. For many seniors and retirees, this means either a modest increase in payments or, in some cases, no change at all if their income or assets exceed new thresholds.
Why the Adjustment Matters Now
The cost of everyday essentials such as groceries, energy, rent, and medical expenses continues to climb. Pension indexation aims to protect older Australians from inflation, ensuring their support keeps pace with economic pressures.
However, not everyone will feel the same impact. Those on the full Age Pension can expect a noticeable lift, while part-pensioners may see smaller changes depending on how close they are to cut-off points.
How Much Will the Age Pension Be?
From this week, the new fortnightly Age Pension rates are as follows:
| Category | Previous Rate (per fortnight) | New Rate (per fortnight) | Change |
|---|---|---|---|
| Single | $1,116.30 | $1,136.20 | +$19.90 |
| Couple (each) | $841.40 | $856.00 | +$14.60 |
| Couple (combined) | $1,682.80 | $1,712.00 | +$29.20 |
The pension supplement and energy supplement remain unchanged, which means the increases apply only to the base rate.
Winners and Losers of the New Rates
For singles living alone, the $19.90 rise will provide some relief, particularly for those struggling with rent and food costs. Couples will see a slightly smaller increase per person, but when combined, their household income grows by almost $30 per fortnight.
On the other hand, part-pensioners whose income or assets are close to the upper limits may see their payments taper off. For some, the increase in the base rate could push them past eligibility thresholds, reducing or even cutting off their fortnightly pension.
What Pensioners Should Do Next
If you are receiving the Age Pension, your payments will automatically adjust there’s no need to reapply. However, it is essential to review your Centrelink income and asset records to ensure they are up to date. Even small financial changes, such as extra savings interest or superannuation earnings, can alter how much you receive under the income and assets tests.
The Bigger Picture
While the increase provides short-term help, many seniors’ groups argue that the adjustments are not enough to meet the real cost of living in 2025. Calls are growing for further reforms, including more generous rent assistance, fairer deeming rates for investments, and higher thresholds to stop part-pensioners from losing out.
