In a significant move to support senior Australians, the Centrelink Age Pension has received its scheduled biannual increase, offering a much-needed financial boost to millions. As of September 20, 2025, many pensioners will notice a welcome rise in their fortnightly payments, an adjustment designed to help them cope with the ever-increasing cost of living. This latest indexation is a critical part of Australia’s social security system, ensuring that the Centrelink Age Pension rates remain aligned with economic changes, providing stability for those in their retirement years. This article breaks down everything you need to know about the new payment rates, eligibility, and what this increase means for your budget.
The recent rise in the Centrelink Age Pension is a direct response to inflation and wage growth, reflecting the government’s commitment to supporting its senior citizens. This scheduled update, which takes effect twice a year, ensures that pension payments don’t lose their purchasing power over time. With this September 2025 adjustment, single pensioners will see their maximum fortnightly income reach $1,178.70, while couples also benefit from a substantial increase. This structured approach provides a predictable and reliable safety net, helping pensioners plan their finances with greater confidence amidst fluctuating economic conditions. The increase helps cover essential expenses like housing, healthcare, and groceries.
Centrelink Age Pension Rises
The following table provides a clear overview of the new Centrelink Age Pension rates that are in effect from September 20, 2025, through to March 19, 2026.
| Type | Maximum Base Rate (per fortnight) | Maximum Pension Supplement (per fortnight) | Energy Supplement (per fortnight) | Total (per fortnight) | Total (per year approx.) |
|---|---|---|---|---|---|
| Single | $1,079.70 | $84.90 | $14.10 | $1,178.70 | $30,646 |
| Couple (Each) | $813.90 | $64.00 | $10.60 | $888.50 | $23,101 |
| Couple (Combined) | $1,627.80 | $128.00 | $21.20 | $1,777.00 | $46,202 |
| Couples separated due to illness (Combined) | – | – | – | $2,357.40 | $61,292 |
Detailed Breakdown of the Pension Increase
Understanding how the Centrelink Age Pension increase is calculated can help clarify why your payment has changed. The rise isn’t just a single figure; it’s a combination of adjustments to different components of your payment. The biannual indexation process on March 20 and September 20 is tied to movements in the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI), ensuring the rates reflect real-world cost pressures.
- For Singles: The total fortnightly increase of $29.70 is broken down into a $28.40 lift in the maximum base rate and a $1.30 rise in the maximum pension supplement.
- For Couples: Each person in a couple receives a $22.40 increase per fortnight, resulting in a combined total of $44.80. This is composed of a $21.40 increase to their individual base rate and a $1.00 increase to the pension supplement.
This adjustment automatically applies to everyone receiving the Centrelink Age Pension, as well as those on the Disability Support Pension and Carer Payment, providing widespread financial relief.
One-Off Bonus Payment in September
- On top of the indexed rate rise, the government issued a special one-off payment in September 2025 to provide extra support. This bonus payment of $285 was a targeted measure to help eligible recipients manage immediate financial pressures without affecting their regular pension entitlements.
- This payment was tax-exempt and did not count as income for social security purposes, meaning it did not impact your eligibility for the Centrelink Age Pension or any concession cards. The rollout started on September 13, 2025, with the funds deposited directly into bank accounts, providing a timely and hassle-free boost for pensioners.
Eligibility for Centrelink Age Pension
To receive the Centrelink Age Pension, you must satisfy three main criteria: your age, residency status, and an assessment of your income and assets.
Age Requirements
As of now, the qualifying age for the pension is 67 for any person born on or after January 1, 1957. This age was gradually increased over several years to its current level.
Residency Requirements
You generally need to be an Australian resident and physically present in Australia on the day you submit your claim. There is also a 10-year residency rule, which requires you to have been an Australian resident for a continuous period of at least 10 years, or for multiple periods that total 10 years, with one of those periods being at least five years continuous.
Income and Assets Tests
Whether you receive a full or part pension depends on the income and assets tests. Centrelink calculates your payment under both tests and applies the one that results in the lower rate. The thresholds for these tests were also increased on September 20, 2025, meaning some pensioners may now receive a higher payment or become newly eligible. Keeping your income and asset details updated with Centrelink is crucial to ensure you receive the correct entitlement.
How and When Payments Are Made
The new, higher pension rates took effect on September 20, 2025. Pensioners will have seen the increased amount in their first scheduled fortnightly payment after this date. Payments are made directly into your nominated bank account every two weeks. You can view your specific payment dates, report any changes in your circumstances, and manage your details by logging into your Centrelink online account via myGov or by using the Express Plus Centrelink mobile app.
Impact of Deeming Rate Changes
- It’s also important to be aware of the changes to deeming rates, which occurred in September 2025 for the first time in five years. Deeming is a set of rules Centrelink uses to work out the income created from your financial assets. It assumes these assets earn a certain rate of income, regardless of the income they actually earn.
- This change impacts around 771,000 retirees and pensioners whose payments are calculated using deemed income. While the Centrelink Age Pension has increased, some individuals with substantial financial assets might find that the rise in deeming rates slightly offsets their overall payment increase. Understanding how deeming affects your payment can help you better manage your financial strategy in retirement.
FAQs about Centrelink Age Pension Rises
What is the main reason for the Centrelink Age Pension increase?
The pension is increased biannually every March and September through a process called indexation. This process adjusts payment rates to keep up with rises in the cost of living, as measured by the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI), ensuring your income maintains its purchasing power.
How do I know if I’m eligible for the maximum pension rate?
Eligibility for the maximum rate depends on your income and assets. If your income and assets are below the lower thresholds, you will receive the full pension. If they are above these thresholds, you will receive a part pension, which reduces as your income or assets increase. The thresholds were recently updated on September 20, 2025.
Will this pension increase affect my concession cards?
No, the standard pension increase will not affect your eligibility for the Pensioner Concession Card. This card provides access to cheaper health care, medicines, and discounts on various services. Eligibility is generally tied to receiving the Centrelink Age Pension, so as long as you remain a recipient, your card will remain valid.
What should I do if my payment seems incorrect?
If you believe your payment amount is incorrect or have questions about the calculation, the first step is to contact Services Australia. You can do this by calling them, visiting a service centre, or checking your payment details and income and asset information through your Centrelink online account via myGov to ensure everything is up to date.
Are there other payments I might be eligible for?
Yes, depending on your circumstances, you may be eligible for supplementary payments in addition to the Centrelink Age Pension. These can include Rent Assistance if you pay private rent, the Energy Supplement to help with utility bills, and other allowances for specific needs. It’s worthwhile to check your eligibility for these additional forms of support.
