Australia’s senior citizens are set to benefit from an increase in their retirement income with the Age pension Australia 2025 update taking effect in September. In response to ongoing inflation and rising living costs, the federal government has confirmed new pension rates and additional changes to superannuation thresholds.
The September superannuation update not only boosts the base fortnightly pension but also adjusts asset and income test limits, giving more flexibility to retirees managing their post-work finances. With over 2.5 million Australians relying on the age pension, these changes bring welcome financial relief and greater security for older Australians.
This article covers the new rates, eligibility factors, and how these changes align with ongoing superannuation reforms across the country.
What’s Changing in Age Pension Australia 2025?
Starting from 20 September 2025, the Age pension Australia 2025 payment will be adjusted to reflect the latest inflation indexation. The changes are automatically applied every March and September to maintain the pension’s real value against the rising cost of living.
Here are the key highlights of the September update:
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Increase in maximum basic rate for singles and couples
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Adjustment to income and asset limits
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Slight increase in supplementary payments
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Related updates to superannuation income thresholds
The government’s intention is to ensure that older Australians can continue to live with dignity and financial independence, especially as prices for essential goods and services remain high.
New Fortnightly Pension Rates – September 2025
The following table provides a breakdown of the new pension payments following the September superannuation update:
| Recipient Type | New Base Rate (Fortnightly) | Supplements (Energy + Pension) | Total Payment |
|---|---|---|---|
| Single Pensioner | $1,070.20 | $86.30 | $1,156.50 |
| Couple (each) | $807.60 | $65.10 | $872.70 |
| Couple (combined) | $1,615.20 | $130.20 | $1,745.40 |
The Age pension Australia 2025 increase is part of the government’s ongoing indexation policy, which adjusts rates in line with either the Consumer Price Index (CPI), Pensioner and Beneficiary Living Cost Index (PBLCI), or Male Total Average Weekly Earnings (MTAWE), whichever is higher.
How Superannuation Factors Into the Update
The September superannuation update plays a crucial role in shaping pension eligibility, especially for new retirees. Superannuation drawdowns are considered income and may affect your pension entitlement under the income test. Additionally, balances are assessed under the asset test if you are drawing from your super.
Key updates:
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Superannuation income thresholds for deeming have been updated
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Asset test upper limits have increased to accommodate inflation
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Combined pension + super strategies are being recommended more actively by financial advisors
Retirees with moderate super balances will find they may now qualify for a part pension or a higher pension rate, especially if their savings are carefully managed.
Tips for Managing Pension & Super Together
Balancing the Age pension Australia 2025 with your superannuation income requires careful planning. Many seniors make the mistake of drawing too much from super early on, which reduces their long-term pension eligibility.
Here are some quick planning tips:
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Speak to a Centrelink Financial Information Services officer
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Use income drawdown strategies to stay within limits
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Keep your assets under the new test thresholds
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Track fortnightly reporting if you’re on a part pension
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Combine super income with age-based tax concessions for maximum benefit
Understanding the September superannuation update ensures you optimize both your pension and retirement savings in tandem.
Conclusion
The Age pension Australia 2025 changes offer much-needed financial improvement for Australian retirees starting September. From increased pension rates to revised income and asset thresholds, the September superannuation update helps ensure that retirement remains financially manageable amid ongoing economic challenges.
Whether you’re already receiving the age pension or nearing eligibility, it’s important to stay informed about these updates and how they interact with your superannuation. With careful planning, pensioners can enjoy a more secure and stable retirement life.
FAQs
When will the new Age pension Australia 2025 rates take effect?
The new rates will come into effect starting 20 September 2025 and will be reflected in the next scheduled fortnightly payment.
How much more will I receive after the September superannuation update?
Singles will receive an increase of about $19.60 per fortnight, while couples (combined) will get approximately $34.80 more per fortnight.
Does my superannuation affect my pension amount?
Yes, superannuation is assessed under both the income and asset tests. The September superannuation update includes revised thresholds to accommodate inflation.
Can I still get a part pension if I have a large super balance?
Depending on your drawdown and investment strategy, you may still qualify for a part pension. It’s recommended to consult a financial advisor for personalized planning.
Will I need to apply for the increased pension amount?
No, the Age pension Australia 2025 increase is automatic. If you are eligible, Centrelink will apply the new rate directly to your payment schedule.
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