The Australian government has confirmed pension increases for 2025, benefiting retirees, carers, and those receiving disability support. This annual adjustment ensures that payments keep up with inflation and changing economic conditions, helping vulnerable Australians cope with rising living costs.
Overview of Australia’s Pension Increase in 2025
The Age Pension, Disability Support Pension (DSP), and Carer Payment will see changes effective from April 1, 2025. These payments are revised twice yearly based on economic indicators such as the Consumer Price Index (CPI) and Male Total Average Weekly Earnings.
For 2025, the expected adjustment falls between 2.5% and 3.5%. These changes aim to ease the financial burden on older Australians and carers while also maintaining adequate support for people with disabilities.
Australia Age Pension Increase
To be eligible for the Age Pension in 2025, applicants must be Australian citizens or permanent residents who have reached the age of 66.5 years. By September 2025, the pension age will increase to 67 years.
The new base rate for a single Age Pension recipient is now $1,144.40 per fortnight, combining:
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Base Pension: $1,047.10
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Pension Supplement: $83.20
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Energy Supplement: $14.10
For couples living together, the combined total is $1,725.20 per fortnight.
Carer Payment and Allowance Changes
From April 20, 2025, the Carer Payment will see ongoing improvements. This income support is for individuals providing constant care for someone with a severe medical condition or disability.
The Carer Allowance will rise by $5.80, increasing the total fortnightly payment to $159.30.
In addition, several rule changes will benefit carers:
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Carers can now work up to 100 hours over a 4-week period, replacing the old 25-hours/week cap.
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Education and volunteering activities no longer count toward the participation limit.
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Travel time for work won’t count against the cap, aiding rural carers.
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If carers temporarily exceed limits, payments may resume automatically within six months when limits are no longer exceeded.
These changes aim to offer flexibility, especially for carers balancing employment and caregiving responsibilities.
Disability Support Pension Update
As of April 1, 2025, there is no confirmed increase for the Disability Support Pension. However, payment rates will be reviewed again on April 20 and September 20, as per the standard update cycle.
To qualify for DSP, a person must:
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Meet both medical and non-medical conditions under social security law
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Provide supporting medical evidence
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Possibly qualify under the manifest grant rule, allowing exemption from future reassessments
More details are available on the Services Australia website, including eligibility related to age, disability diagnosis, and program of support requirements.
Updated Pension Rates for 2025
| Benefit Type | Single / Couples Living Apart | Couple (Living Together) |
|---|---|---|
| Base Rate | $1,047.10 | $862.60 (each) |
| Pension Supplement | $83.20 | Included above |
| Energy Supplement | $14.10 | Included above |
| Total (Single) | $1,144.40 | $1,725.20 (combined) |
Centrelink Payment Dates for 2025
These payments are made every two weeks. The April pension increases will be in effect from April 20, 2025, and continue until September 19, 2025, when the next adjustment is expected.
FAQs
When will the 2025 Age Pension increase come into effect?
The pension increase will apply starting from April 20, 2025.
Who is eligible for the updated Age Pension in 2025?
Applicants must be 66.5 years or older and meet citizenship, residency, and income requirements.
Will Carer Payment and Allowance increase in April 2025?
Yes, Carer Payment rules are changing, and the Carer Allowance increases to $159.30 per fortnight from April 20.
Is the Disability Support Pension increasing in April 2025?
No, the DSP is not scheduled to increase on April 1, but rates will be reviewed again on April 20, 2025.
What are the new working rules for carers?
Carers can now work up to 100 hours over four weeks and can exclude education, volunteering, and travel time from the participation limit.
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