The Australian government has officially announced the new pension rates for 2025, which will come into effect from September 2025. These updated rates are designed to reflect changes in the cost of living and ensure pensioners continue to receive adequate financial support.
New Pension Rates for 2025
The updated rates apply to Age Pension, Disability Support Pension (DSP), and Carer Payment recipients.
| Category | Fortnightly Rate (2024) | New Fortnightly Rate (Sept 2025) |
|---|---|---|
| Single Pensioner | $1,064.00 | $1,127.00 |
| Pensioner Couple (combined) | $1,604.00 | $1,699.00 |
| Disability Support Pension (DSP) | $1,064.00 | $1,127.00 |
| Carer Payment | $1,064.00 | $1,127.00 |
Rates are subject to income and asset tests applied by Centrelink.
Why the Increase?
The government adjusts pension rates twice a year to keep payments in line with inflation and wage growth. This 2025 update ensures seniors and carers are not left behind as living costs rise.
A government spokesperson said:
“These changes ensure older Australians and carers continue to receive fair support that reflects today’s cost of living.”
Frequently Asked Questions (FAQ)
1. When do the new rates apply?
From 20 September 2025, aligned with the next indexation period.
2. Do I need to apply for the new rates?
No. Centrelink will automatically adjust payments.
3. Will part-pensioners benefit?
Yes. If eligible under income and asset thresholds, part-pensioners will also see their payments increase.
4. How often are pension rates reviewed?
Rates are reviewed twice a year — in March and September.
5. Will this affect other payments like Rent Assistance?
No. This increase applies to the base pension rates. Other supplements remain separate.
Key Takeaway
The new pension rates announced for 2025 provide higher fortnightly payments for singles, couples, carers, and DSP recipients. These increases are automatic, ensuring seniors receive better financial support in line with Australia’s rising living costs.