From September 20 2025, Australian Seniors will get another $29.70 every fortnight Age Pension payment. The Government is now considering the biannual indexation of the pension. This comes as good news since cost of living expenses, such as groceries and healthcare, have been on the rise. A single pensioner will have their payment bumped up to $1,178.70 paid bi-weekly. A couple will receive $22.40 extra each. While these numbers aren’t huge, they will significantly help seniors cope with inflation on a fixed income.
What the increase means for singles and couples
The boost comes from a rise in the pension’s base rate, pension supplement, and energy supplement. As of now, the base pension is sitting at $1,079.70 for singles after $28.40 boost. Couples living together will also receive $888.50 after a $22.40 raise. It is also good to know that couples who are separated due to a medical condition are paid the single rate which allows for a higher combined amount. All these changes are made in good faith to seniors who have a right to the pension after residing in Australia and passing the means test.
Eligibility Criteria and How Seniors Can Verify Their Pension Status
The increased pension amount is available for certain people only due to strict pretax income and assets tests conducted by Services Australia. Recognized Seniors that hold the Age Pension, Disability Support Pension, or Carer Payment will be granted the increase automatically, as long as the normal conditions are met. New applicants granted before the effective date of the increase will automatically receive the new amount. Seniors may confirm their eligibility online on their Centrelink account or physically at Services Australia offices. Compliance to these rules is critical for seniors who want to assure maximum benefits for their entitlements.
The Effects of Deeming Rate Changes and What Lies Ahead
The government plans to increase the deeming rates which are the rules used to calculate income from financial assets for the purposes of pension payments. The deeming rates are to increase from 0.25% to 0.75% and from 2.25% to 2.75% on higher balances. This could impact some pensioners’ payments, particularly for those who are near the means test boundary, partially negating the pension increase for some. That said, analysts believe the remaining net value of the package is a net gain for many seniors, reducing pensioner poverty and promoting economic stability.
As the cost of living increases, strongly considering the needs of living Australian seniors, this deeming increase is a very positive step. The pension payments will continue to be reviewed, which ensures they will be in line with economic standing for a number of seniors. Older Australians who are eligible for the pension are advised to assess their pension details and contact Services Australia with any questions about the eligibility and payment processes in order to maximize the available benefits in 2025 and afterwards.