Australia’s Age Pension is a permanent, means-tested payment that’s indexed twice a year (20 March and 20 September) to help keep up with living costs.
From 20 September 2025, the maximum fortnightly rate is $1,178.70 for singles and $888.50 each for couples (combined $1,777.00), including supplements.
What Has Changed In 2025?
- Indexation uplift (Sep 2025): Rates rose to the amounts above; base, supplement and totals are shown in the table below.
- Deeming rates reset: After the freeze to 30 June 2025, deeming rates change from 20 Sept 2025 to 0.75% (lower) and 2.75% (upper) for financial assets.
- Means tests moved with indexation: Typical cut-offs now include income disqualifying limits of $2,575.40/fortnight (single) and $3,934.00/fortnight (couple, combined), and assets disqualifying limits of $714,500 (single homeowner) and $1,074,000 (couple homeowners).
- Work Bonus settings: Pensioners can offset $300 of work income each fortnight and bank unused amounts up to $11,800; the $4,000 starting credit for new eligible recipients has been made permanent.
- CSHC expanded: If you’re over pension age but not eligible for the Age Pension, the Commonwealth Seniors Health Card income limits (from 20 Sept 2025) are $101,105 (single) and $161,768 (couple, combined).
Planned Reforms & Policy Signals
- Superannuation Guarantee now 12%: From 1 July 2025, the compulsory employer SG lifted to 12%—a long-planned step that should lift future retirement balances and reduce pressure on the Age Pension over time.
- Ongoing indexation: Pension rates and thresholds continue to index every March and September, preserving purchasing power.
Retirement Trends To Watch
- The Intergenerational Report projects pension spending falling as a share of GDP over coming decades as super balances mature—supporting the program’s long-term sustainability.
- Living-cost benchmarks are rising: ASFA’s June-quarter 2025 Retirement Standard estimates a “comfortable” budget of $75,319/year for couples and $53,289/year for singles (homeowners), highlighting why the pension’s indexation and settings matter.
Quick Reference (As At 20 September 2025)
| Setting | Key Details |
|---|---|
| Age Pension Age | 67 years (no announced increase beyond 67). |
| Max Rate (Single) | $1,178.70/fortnight (base $1,079.70 + pension supplement $84.90 + energy supplement $14.10). |
| Max Rate (Couple, each) | $888.50/fortnight (combined $1,777.00). |
| Indexation | 20 March & 20 September each year. |
| Income Test – Disqualifying | $2,575.40/fortnight (single); $3,934.00/fortnight (couple combined). |
| Assets Test – Disqualifying | $714,500 (single homeowner); $1,074,000 (couple homeowners). |
| Deeming Rates | 0.75% (lower), 2.75% (upper) from 20 Sept 2025. |
| Work Bonus | $300/fortnight credit; income bank up to $11,800; $4,000 starting credit permanent for new eligible recipients. |
| CSHC Income Limits | $101,105 (single); $161,768 (couple combined). |
| Super Guarantee | 12% from 1 July 2025 (final scheduled rise). |
Australia’s Age Pension remains secure and indexed, with higher rates from September 2025, refreshed deeming rates, and stable means-test thresholds that rise with indexation.
At the same time, the 12% SG and growing super balances point to less reliance on the pension in future, while expanded CSHC access helps many who miss out on a pension.
For most Australians, the Age Pension will continue as the bedrock of retirement income—supplemented by super and, for workers past pension age, the Work Bonus.
