$891 Age Pension Boost Arrives September 2025 – Check If You Qualify

Australia’s Age Pension is set for an important update in September 2025, delivering extra financial support for millions of retirees.

From 20 September 2025, new payment rates will apply, along with changes to deeming rates and Rent Assistance, marking one of the most significant adjustments in recent years.

While headlines highlight a “$891 boost,” the exact increase depends on your circumstances, such as whether you’re single, part of a couple, or renting.

Key Changes from September 2025

1. Increase to Fortnightly Age Pension

• Singles (maximum rate): Increase of $29.70 per fortnight, taking the full payment to $1,178.70 per fortnight.
• Couples (each, maximum rate): Increase of $22.40 per fortnight, taking payments to $888.50 per fortnight.

2. Rent Assistance Increase

For those who receive Commonwealth Rent Assistance (RA):

• Singles: Increase of $3.40 per fortnight.
• Couples: Increase of $3.20 per fortnight each.

3. Deeming Rates Rise

The government will lift deeming rates by 0.5%, after years of freezing them during the pandemic. This means:

• 0.75% on financial assets up to $64,200 (single) or $106,200 (couple combined).
• 2.75% on balances above these thresholds.

This change is crucial because higher deeming rates can reduce part-pensions for those with significant savings or investments.

New Age Pension Rates and Thresholds (from 20 Sep 2025)

Item	Singles	Couples (each unless stated)	Increase / Threshold
Max Age Pension (per fortnight)	$1,178.70	$888.50	+$29.70 (single) / +$22.40 (each)
Max Rent Assistance (per fortnight)	$215.40	$203.00	+$3.40 (single) / +$3.20 (each)
Deeming Rate (lower / upper)	0.75% / 2.75%	0.75% / 2.75%	Thresholds: $64,200 (single), $106,200 (couple combined)
Income-Free Area (per fortnight)	$218	$380 (combined)	Above this, pension reduces by 40c per $1 (single) / 20c each (couple)
Full Pension Asset Limits	$321,500 (single homeowner) / $579,500 (single non-homeowner)	$481,500 (couple homeowners) / $739,500 (couple non-homeowners)	For full pension
Part Pension Cut-Off Assets	$714,500 (single homeowner) / $972,500 (single non-homeowner)	$1,074,000 (couple homeowners) / $1,332,000 (couple non-homeowners)	Above this, pension stops

pf = per fortnight

What Does the $891 Boost Mean?

The “$891” figure refers to the approximate annual gain for some retirees:

• Single non-renters: Around $772 per year extra.
• Single renters (on max RA): Around $861 per year extra.
• Couples (non-renters): About $582 each per year (≈ $1,165 combined).
• Couples (renters on max RA): About $666 each per year (≈ $1,331 combined).

So, while not every pensioner sees exactly $891, most will notice a meaningful annual boost, with renters benefiting slightly more.

Who Qualifies for the September 2025 Increase?

To receive the Age Pension, you must:

1. Be aged 67 or over.
2. Meet residency requirements (generally 10 years of residency, with at least 5 consecutive years).
3. Pass the income and assets tests:
   • Income Test: Pension reduces once you earn above $218 per fortnight (single) or $380 per fortnight (couple combined).
   • Assets Test: If your assets exceed the cut-off values listed in the table, your pension may reduce or stop.

Renters who qualify for Commonwealth Rent Assistance will see an additional payment increase.

Why the Deeming Rate Change Matters

For retirees with savings, shares, or managed funds, the deeming rule assumes your money earns a set rate, regardless of real returns.

The September 2025 increase to deeming rates means more of your assets will be “deemed” to earn higher income, which could reduce part-pensions. Full-rate pensioners will still see the increase in full.

What You Should Do Next

• Check your new rate in your MyGov or Services Australia account after 20 September 2025.
• Review your financial assets, especially if you’re on a part-pension, to understand the impact of higher deeming rates.
• If renting, confirm you’re receiving the correct level of Rent Assistance under the new thresholds.

The September 2025 Age Pension increase brings much-needed relief, with most pensioners gaining between $772 and $891 per year, and couples receiving even more combined.

While renters gain an extra edge with increased Rent Assistance, those with larger financial assets need to watch how the deeming rate adjustment affects their part-pension.

Overall, this update ensures Age Pension payments keep pace with the rising cost of living, offering seniors more financial stability in the months ahead.

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