Federal government has confirmed an increase in Age Pension payments from 20 March 2025. These adjustments, made twice a year, help pensioners keep pace with the cost of living. However, this time, the rise will be modest due to slowed inflation.
How Much More Will You Get?
Age Pension payments are adjusted based on the Consumer Price Index (CPI) and the Pensioners and Beneficiaries Living Cost Index (PBLCI). Between June and December 2024, CPI rose by 0.4% and PBLCI by 0.2%, leading to only a slight increase in payments.
New Age Pension Rates from 20 March 2025
| Payment Type | Current Rate (Single) | New Rate (Single) | Increase |
|---|---|---|---|
| Maximum Basic Rate | $1,047.10 | $1,051.29 | $4.19 |
| Maximum Pension Supplement | $83.20 | $83.53 | $0.33 |
| Energy Supplement | $14.10 | $14.10 | No change |
| Total | $1,144.40 | $1,148.92 | $4.52 |
| Payment Type | Current Rate (Couple Each) | New Rate (Couple Each) | Increase |
| Maximum Basic Rate | $789.30 | $792.46 | $3.16 |
| Maximum Pension Supplement | $62.70 | $62.95 | $0.25 |
| Energy Supplement | $10.60 | $10.60 | No change |
| Total | $862.60 | $866.01 | $3.41 |
For couples combined, the increase will be $6.82 per fortnight ($177.32 per year), while pensioners apart due to ill health will receive an additional $4.52 per fortnight ($117.52 per year).
Will This Increase Help?
While any increase is welcome, this adjustment may feel minimal. A $4.52 rise per fortnight for singles and $6.82 for couples might not even cover a cup of coffee in some cities. With everyday costs still climbing, the boost offers limited relief.
Can the Age Pension Ever Decrease?
No. Under Australian law, Age Pension payments cannot be reduced, even if inflation drops. While this protects pensioners from income cuts, it also means increases depend on inflation trends, which have slowed significantly in recent months.
Other Key Changes from 20 March
In addition to the pension increase, other limits and entitlements will change:
- Income and Asset Limits: These will rise slightly, impacting pension eligibility.
- Commonwealth Rent Assistance: With rents continuing to climb, the government may adjust this support.
- Pension Supplements: Reviewed every March and September, these will see small increases.
- Energy Supplement: This remains unchanged as it is not indexed to inflation.
What’s Next?
With living expenses still high, many pensioners may struggle despite this increase. If you’re unsure about your entitlements or want to explore ways to maximise your payments, you can use the free Age Pension Entitlements Calculator or consult an expert for tailored advice. Stay updated as we bring you the official figures from Services Australia in the coming weeks.
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