The Australian Government has officially confirmed an increase to the Age Pension for 2025, bringing financial relief to hundreds of thousands of older Australians. As inflation and the cost of living continue to rise, this pension increase is part of the federal government’s ongoing commitment to support retirees with better financial stability in their later years.
The new rates are scheduled to take effect from 1 July 2025, with payments adjusted automatically for all eligible recipients. This update will affect the base rate, as well as the associated supplements that make up the full Age Pension entitlement. Here’s a detailed look at the changes, eligibility criteria, and what pensioners can expect moving forward.
What’s Driving the 2025 Pension Increase?
Each year, the Age Pension is reviewed in March and September, using either the Consumer Price Index (CPI) or the Pensioner and Beneficiary Living Cost Index (PBLCI), whichever delivers a better outcome for pensioners. In 2025, the government has responded to significant inflationary pressures and increased household costs with a more generous pension adjustment than usual.
This mid-year update ensures that older Australians aren’t left behind amid rising costs in essential areas like healthcare, groceries, energy, and housing.
New Pension Payment Rates from July 2025
Effective from 1 July 2025, the Age Pension rates have been updated to reflect the current economic conditions. Here’s a breakdown of the fortnightly pension payments following the increase:
| Category | Base Rate | Pension Supplement | Energy Supplement | Total Payment (Fortnightly) |
|---|---|---|---|---|
| Single Pensioner | $1,084.00 | $81.60 | $14.10 | $1,179.70 |
| Couple (each) | $817.40 | $61.50 | $10.60 | $889.50 |
| Couple (combined) | — | — | — | $1,779.00 |
These amounts reflect modest increases across all components, and are expected to be revised again in September 2025 during the next indexation cycle.
Who Qualifies for the 2025 Age Pension?
To qualify for the Age Pension in 2025, you must meet three main eligibility criteria: age, residency, and income/asset requirements.
The qualifying age for the Age Pension is 67 as of July 2023 and remains unchanged in 2025. Applicants must also be Australian residents and have lived in the country for at least 10 years, with at least five of those years being continuous. Certain exemptions apply under international social security agreements.
Your income and assets will determine whether you receive a full or part pension. These thresholds have also been adjusted in July 2025. For example, a single homeowner can now hold assets up to approximately $674,000, while a non-homeowner may have up to $896,500. Couples have higher combined thresholds, allowing for modest retirement savings without impacting pension eligibility.
What Should Current and Future Pensioners Do?
Current pension recipients do not need to take any action to receive the updated payments. Centrelink will automatically adjust your pension rate from 1 July 2025. However, it’s essential to keep your financial records up to date, especially if you’ve recently had changes to your superannuation, savings, or living arrangements.
Those nearing pension age should begin preparing their documentation and submit their applications through the MyGov portal or contact Services Australia directly. Applying early can ensure timely access to benefits and avoid delays caused by incomplete financial reporting.
Looking Ahead: What to Expect in September 2025
While the July increase is significant, pensioners can also expect another round of indexation in September 2025. These regular adjustments are crucial in maintaining the real value of the Age Pension and ensuring older Australians do not fall behind economically.
If inflation continues to trend upward, the September adjustment may also bring further increases, offering even more relief to retirees across the country.