The Age Pension remains a critical source of income for Australian retirees. Despite the rise in superannuation, a large proportion of older Australians rely on the pension for financial stability.
From 20 September 2024, Age Pension rates have increased to help pensioners keep up with rising living costs. The increases per fortnight are:
- Single pensioners: Increased by $28.10
- Each member of a couple: Increased by $21.20
New Age Pension Payment Rates (September 2024 – March 2025)
| Pension Type | Payment Per Fortnight | Annual Payment |
|---|---|---|
| Single Pensioner | $1,144.40 | $29,754 |
| Couple (each) | $862.60 | $22,428 |
| Couple (combined) | $1,725.20 | $44,855 |
| Couples separated due to illness (combined) | $2,288.80 | $59,509 |
These figures include the pension supplement and energy supplement.
Detailed Breakdown of Age Pension Payments
Age Pension Rates for a Single Pensioner
| Payment Type | Fortnightly Payment | Increase from Previous Rate |
|---|---|---|
| Maximum Base Rate | $1,047.10 | $26.50 |
| Maximum Pension Supplement | $83.20 | $1.60 |
| Energy Supplement | $14.10 | No Change |
| Total Payment Per Fortnight | $1,144.40 | $28.10 |
| Total Annual Payment | $29,754 | $731 Increase |
Age Pension Rates for Couples Living Together
| Payment Type | Fortnightly Payment (Each) | Increase (Each) | Fortnightly Payment (Combined) | Increase (Combined) |
|---|---|---|---|---|
| Maximum Base Rate | $789.30 | $20.00 | $1,578.60 | $40.00 |
| Maximum Pension Supplement | $62.70 | $1.20 | $125.40 | $2.40 |
| Energy Supplement | $10.60 | No Change | $21.20 | No Change |
| Total Per Fortnight | $862.60 | $21.20 | $1,725.20 | $42.40 |
| Total Annual Payment | $22,428 | $551.20 Increase | $44,855 | $1,102.40 Increase |
These figures apply from 20 September 2024 to 19 March 2025.
When Is the Next Age Pension Increase?
The next Age Pension review will take place on 20 March 2025. An increase is highly likely due to ongoing inflation pressures.
Age Pension rates are adjusted twice a year, in March and September, based on:
- Consumer Price Index (CPI)
- Male Total Average Weekly Earnings (MTAWE)
- Pensioner and Beneficiary Living Cost Index (PBLCI)
While increases are common, they are not guaranteed. For example, in September 2020, the Age Pension did not increase for the first time since 1997.
How Do You Qualify for the Age Pension?
To receive the Age Pension, you must meet the following conditions:
- Age Requirement – You must be 67 years old or older.
- Residency Requirement – You must be an Australian resident for at least 10 years, with at least five years of continuous residency.
- Income and Assets Test – Your pension amount depends on your income and asset levels.
The income and asset thresholds determine whether you are eligible for:
- Full Age Pension
- Part Age Pension
- No Pension (if your income or assets exceed the limits)
MUST READ: Centrelink February 2025 Payment Dates & Increased Rates – Full Details
What Happens if Only One Member of a Couple Is Eligible?
If only one person in a couple qualifies for the Age Pension, different rules apply. The eligible partner will receive:
- The couple’s rate rather than the single rate
- A part pension if their income or assets exceed the full pension limit
If a couple is separated due to illness, both will receive the single pension rate, as their expenses are considered higher.
How Often Is the Age Pension Paid?
The Age Pension is paid fortnightly by the Services Australia department. Payments are made directly into the pensioner’s nominated bank account.
Can You Get an Advance Payment of the Age Pension?
Yes, pensioners may be able to request an advance payment. This allows recipients to receive part of their pension early, which is then repaid through reduced future pension payments.
Advance payments are useful for:
- Covering unexpected expenses
- Managing larger purchases
- Handling urgent financial needs
To check eligibility for an advance payment, visit Services Australia or use Centrelink’s online services.
Can You Also Receive Rent Assistance?
Age Pension recipients who rent privately may qualify for Rent Assistance to help with housing costs.
Eligibility depends on:
- Rent amount paid
- Living arrangements
- Income and asset test results
Rent Assistance is not available to those who live in public housing.
Transitional Age Pension Rates
For pensioners who were receiving the Age Pension before September 2009, transitional rates may apply. These rates ensure that those affected by past rule changes receive the higher of the two pension calculations.
Transitional rates apply to both residents and non-residents.
FAQs
How much will the Age Pension increase in 2025?
The next potential Age Pension increase is scheduled for 20 March 2025. The exact increase will depend on inflation and economic conditions.
Can I receive the Age Pension if I have other income?
Yes, but the amount you receive will depend on the income test. If your income exceeds the pension threshold, your payment may be reduced or cancelled.
Does superannuation affect the Age Pension?
Yes, superannuation is counted under the assets test. The way it affects your pension depends on whether your super is in the accumulation phase or being drawn as an income stream.
Can I receive a part Age Pension?
If your income and assets exceed the full Age Pension limit, you may still be eligible for a part pension. The payment amount will be adjusted accordingly.
How do I check my Age Pension eligibility?
You can use the Age Pension calculator on the Services Australia website or visit Centrelink to check eligibility.
Can I still receive the Age Pension if I live overseas?
Yes, but pension rates may change based on how long you have lived outside Australia and your citizenship status.
Click here to know more.
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