From October 2025, pensioners across Australia will see an increase in their payments. This update comes as part of the government’s regular pension indexation to help seniors cope with rising living costs. If you or someone in your family receives the Age Pension, Disability Support Pension, or Carer Payment, this change directly impacts you.
Let’s break down what’s changing, who is eligible, and how you can check your pension rate.
Why Are Pension Rates Increasing?
The pension in Australia is reviewed twice a year – in March and September/October. The adjustment is based on inflation and wage growth to make sure seniors maintain a decent standard of living despite rising expenses.
From October 2025, the increase will benefit millions of Australians, especially those relying heavily on government support.
Key Points at a Glance
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Pension payments are increasing from 1 October 2025.
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Rates are updated twice yearly to reflect cost-of-living changes.
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The increase applies to Age Pension, Disability Support Pension, and Carer Payment.
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Couples and singles will receive different rates.
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Eligibility is based on age, residency rules, and income/asset tests.
New Pension Rates from October 2025
Here’s a simplified table to help you understand the updated rates:
| Payment Type | Previous Rate (per fortnight) | New Rate (per fortnight from Oct 2025) | Increase |
|---|---|---|---|
| Single Pensioner | $1,116 approx. | $1,150 approx. | +$34 |
| Pensioner Couple (combined) | $1,682 approx. | $1,730 approx. | +$48 |
| Disability Support Pension (single) | $1,116 approx. | $1,150 approx. | +$34 |
| Carer Payment | $1,116 approx. | $1,150 approx. | +$34 |
Note: Figures are rounded and may vary slightly depending on individual circumstances.
Eligibility Criteria
To qualify for the Age Pension and related payments, you need to meet:
1. Age Requirement
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As of October 2025, the pension age remains at 67 years for new applicants.
2. Residency Rules
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Must be an Australian resident and have lived in the country for at least 10 years, with at least 5 years continuous residency.
3. Income Test
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Pension reduces if you earn over a certain limit.
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For singles: About $204 per fortnight before reduction starts.
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For couples: About $360 per fortnight combined.
4. Assets Test
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Assets like property (excluding your main home), savings, and investments are assessed.
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Different thresholds apply for homeowners and non-homeowners.
How This Affects Pensioners
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More financial relief: Slightly higher payments to offset everyday costs.
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Couples benefit more overall: Since their combined increase is higher.
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Indexation ensures fairness: Payments keep pace with inflation.
Frequently Asked Questions (FAQ)
1. When will the new pension rates apply?
The updated rates take effect from 1 October 2025.
2. Do I need to reapply to get the increased rate?
No, if you’re already receiving payments, the increase is applied automatically.
3. Will everyone get the same increase?
No, the increase depends on your category – single or couple, homeowner or renter, and other eligibility factors.
4. Does this affect all pensions?
Yes, it applies to Age Pension, Disability Support Pension, and Carer Payment.
5. How can I check my exact pension amount?
You can log in to your myGov account linked with Centrelink or check your next payment notice.
Final Thoughts
The October 2025 pension increase is a welcome step for seniors and carers struggling with the rising cost of living. While the boost may not cover every expense, it provides extra financial support at a crucial time.
If you are nearing pension age or already receiving benefits, it’s worth reviewing your eligibility, income, and assets to understand how the updated rates apply to you.