In September 2025, changes to Age Pension payments will reshape many retirees’ income—some may receive up to $772 extra per year, while others could face reductions due to deeming rate changes and assets assessments. Understanding these shifts is crucial for financial planning.
Why the Pension Is Changing
Centrelink traditionally adjusts pension rates twice yearly—typically in March and September—based on inflation indicators and cost-of-living indices.
This time, the Age Pension will receive its largest indexation in years, yet the simultaneous reset of deeming rates and revised eligibility thresholds mean some recipients could see net reductions, depending on their asset holdings and income.
Who Benefits and Who Loses?
| Recipient Type | What Happens |
|---|---|
| Lower-asset or fixed-income seniors | Benefit fully from indexation; may receive up to $772 more annually |
| Full-rate pensioners with more assets | Some boost may be offset or reversed by higher deemed income assumptions |
| Part-rate recipients with moderate assets | May face net cuts if deeming increases outpace available indexation gains |
| High-asset retirees | Deemed income rises sharply; may face a substantial reduction in pension |
Details of the September 2025 Adjustments
- A $29.70 fortnightly increase for single seniors (equating to about $772 annually)
- A $22.40 fortnightly increase per person for couples (combined approx. $1,164 per year)
- Deeming rates, previously frozen at low levels, will rise:
- Lower rate: from 0.25% → 0.75%
- Upper rate: from 2.25% → 2.75%
- These changes are implemented together to moderate the impact on fairness and budget sustainability
What Pensioners Should Do Now
As September approaches, it’s wise to:
- Review financial assets and income sources (savings, term deposits, investment returns)
- Estimate how deeming adjustments will affect your pension using online entitlement calculators or Centrelink tools
- Contact a financial adviser or pension specialist to explore strategies—such as altered withdrawals or investment restructuring—to help manage your test results
Why It Matters
This dual change highlights the delicate balance of welfare policy—ensuring payments reflect inflation, while also maintaining long-term system sustainability.
For many lower-asset pensioners, the adjustment offers meaningful relief. However, those with substantial financial assets may experience a net reduction, underlining the importance of planning ahead and staying informed.
September’s Centrelink updates deliver a mix of promise and caution. For many, the $772 annual pension boost brings welcome relief. For others, especially those with higher assets, the reset deeming rates may erode or cancel out gains.
By preparing ahead, reviewing finances, and seeking advice, seniors can better understand and navigate the impact of these 2025 pension changes.
FAQs
How much extra can I receive from September 2025?
For singles, the maximum additional pension is approximately $772 per year, equating to a fortnightly increase of $29.70.
Why might my payment actually decrease?
If your financial assets earn above a deemed level, the increased deeming rates may allocate more “assumed income” to you—reducing your actual pension entitlement.
When do these changes take effect, and do I need to apply?
Updates apply from 20 September 2025, and most pensioners receive the changes automatically, based on Centrelink assessments.