Age Pension UPDATE – New Rates & Rules from September 2025

From September 20, 2025, new Age Pension rates and means test thresholds have come into effect. Here’s a clear breakdown of what’s changed and the latest figures you need to know.

A Quick Recap on Eligibility

To qualify for the Age Pension, you need to meet three key criteria:

• Age Requirement: You must be 67 years or older.
• Residency Requirement: You generally need to have been an Australian resident for at least 10 years in total.
• Means Testing: Your income and assets are assessed to determine how much pension you can receive.

Boost to Full Age Pension Rates

Good news for pensioners – the full Age Pension rate has received a boost thanks to indexation.

From September 20, 2025, to March 19, 2026, the new maximum fortnightly rates are:

• Singles: $1,178.70 (an increase of $29.70 per fortnight).
• Couples (each): $888.50 (an increase of $22.40 per person, per fortnight).

These figures, which include the basic rate, pension supplement, and energy supplement, translate to an annual income of $30,646.20 for a single and $46,202 for a couple combined.

Remember, if you're eligible for even $1 of the Age Pension, you automatically receive the valuable Pensioner Concession Card.

Rent Assistance Has Also Increased

For eligible pensioners who rent privately, the maximum Rent Assistance rates and the rent thresholds have seen a slight increase. The amount you receive depends on how much rent you pay. For every $1 of rent you pay above a certain minimum threshold, you get back 75 cents, up to a maximum amount.

Changes to the Means Test Thresholds

Centrelink uses both an assets test and an income test to determine your payment. The test that results in the lower pension amount is the one that applies.

Assets Test

The lower assets test thresholds have not changed and will remain in place until June 30, 2026. If your assets are below this level, you will receive the full Age Pension.

However, the upper thresholds (the cut-off limits) have increased:

• Single Homeowner: Cut-off limit increased by $10,000.
• Couple Homeowner: Cut-off limit increased by $15,000.

This means you can now have more assets before your pension is cut off completely. If you are a non-homeowner, your asset limits are higher.

Income Test

Similar to the assets test, the lower income thresholds have not changed.

The upper income limits have moderately increased.

• Singles: Your pension now stops once you earn $2,575.40 per fortnight.
• Couples (combined): Your pension stops once your combined income reaches $3,934 per fortnight.

Important: Deeming Rates Are Going Up

A significant change is the increase in deeming rates, which are used to estimate the income from your financial assets (like bank accounts, shares, and superannuation).

From September 20, 2025, the deeming rates will rise by 0.5%:

• The first $64,200 (singles) or $106,200 (couples) of financial assets will be deemed to earn 0.75%.
• Any amount above these thresholds will be deemed to earn 2.75%.

An increase in the deeming rate means Centrelink will assume you are earning more income from your assets, which could result in a lower Age Pension payment for many income-tested retirees.

Don't Forget the Work Bonus

If you're an Age Pensioner who is still working, the Work Bonus allows you to earn up to $300 per fortnight from employment without it affecting your pension. Any unused portion of this amount accumulates in your Work Bonus balance, up to a maximum of $11,800.