Australian pensioners are in for some welcome news this September. As of 20 September 2025, the government is increasing fortnightly payments for Age Pension, Disability Support Pension (DSP), and Carer Payment by up to $29.70—a significant lift after inflation and rising cost-of-living pressures.
At the same time, deeming rates are being adjusted upwards by 0.50%, affecting how savings are assessed for pension eligibility.
These changes reflect ongoing efforts to support over 5 million recipients, demonstrating a renewed commitment to social security fairness.
Why These Changes Matter
Australia regularly indexes pension payments—typically each March and September—to align with inflation, average wage growth, and consumer living costs.
The September 2025 update marks the largest pension increase in two years, aimed at offering genuine relief amid mounting economic pressures.
Simultaneously, the shift in deeming rates—used to estimate income from financial assets—signals a policy pivot that affects those with savings in how their pension entitlement is calculated.
Key Rate Changes Overview
| Payment Type | Previous Fortnightly Rate | New Fortnightly Rate | Increase |
|---|---|---|---|
| Age Pension (Single) | ~$1,149.00 | ~$1,178.70 | + $29.70 |
| Age Pension (Couple, each) | ~$866.10 | ~$888.50 | + $22.40 |
| DSP & Carer Payments | Similar boost (~$29.70) | Similar boost | + $29.70 |
| Deeming Rate (Low assets) | 0.25% | 0.75% | + 0.50% |
| Deeming Rate (High assets) | 2.25% | 2.75% | + 0.50% |
Breakdown:
- Age Pension (Single): From ~$1,149 to ~$1,178.70 per fortnight.
- Age Pension (Couple, each): From ~$866.10 to ~$888.50.
- DSP & Carer Payments: Aligned with Age Pension increases.
- Deeming Rates: Now 0.75% (low assets threshold) and 2.75% (above threshold), impacting means-tested income calculations.
Who Benefits—And Who Might Be Affected?
- Winners: Over 2.6 million Age Pensioners, plus DSP and Carer Payment recipients, will see direct benefit from the fortnightly increases.
- Mixed Impact: Around 180,000 full-rate pensioners may shift to part-rate due to deeming rate adjustments. About 470,000 part-rate recipients may see less than the full benefit increase—or even a net loss—depending on personal assets, home ownership, and income.
- Government Intent: The staged implementation, aligning deeming changes with indexation, was intended to cushion any adverse effects on maximising fairness.
The Bigger Picture
These updates form part of a larger suite of cost-of-living relief measures introduced by the Albanese Labor government since 2022, including cheap medicines, energy bill assistance, and super cuts—amounting to nearly $5,000 in additional support so far.
The overarching goal is to uphold the integrity of Australia’s social security system and ensure it remains responsive to economic shifts.
Navigating Your Pension in the Impact Zone
If you’re a pension recipient—or will be soon—here’s what to do:
- Check your Centrelink account around 20 September for your updated payment and any changes.
- Review your financial assets to see how your means-tested payments might change due to new deeming rates.
- Monitor your email or post for official notices from Services Australia explaining your recalculated pension.
- Ask for a reassessment if your financial situation changes—especially if your assets decline.
- Stay informed about further updates—pensions may be adjusted again in March 2026 based on economic indicators.
Australia’s upcoming September 2025 pension adjustment delivers a meaningful boost to retirees, carers, and those on disability support—providing up to $29.70 more per fortnight. It’s the most substantial increase in two years and reflects a broader commitment to affordability.
Nonetheless, the accompanying 0.50% hike in deeming rates introduces complexity, with the impact varying across different financial situations. By staying informed and proactive, recipients can better safeguard their retirement income.
FAQs
When does the new pension rate start?
The updated pension rate takes effect from 20 September 2025.
How much will my Age Pension increase?
Single recipients see an increase of $29.70 per fortnight, while each person in a couple receives $22.40 more every two weeks.
Will the deeming rate change affect my pension?
Yes—higher deeming rates may reduce your assessed income from assets, which can offset or reduce part of your pension increase, depending on your individual financial circumstances.