About eight in ten Australians over 65 rely on age pension rates for financial support. 39% of recipients receive a full pension, while 24% receive partial payments. From March 20, 2025, single pensioners will receive up to $1,149.00 every fortnight ($29,874 per year). Couples who live together can receive $1,732.20 each fortnight ($45,037 yearly).
The new age pension rates 2025 could reshape your retirement plans. You need to know about pension adjustments that happen twice a year. Seven out of ten retirees depend on these fortnightly payments as their main income. Your relationship status changes the amount you get by a lot. Couples who live apart because of illness each get single rates that add up to $2,298.00 per fortnight. You can only get these payments if you pass strict income and asset tests. Singles must earn less than $212 per fortnight, and couples below $372 to receive full pension benefits.
What are the new Age Pension rates for March–September 2025?
Australian retirees received modest increases in their age pension rates starting March 20, 2025. These payments are the lifeblood of retirement income that millions of Australians depend on. The rates will stay in place until September 2025.
Single and Couple Rates
Singles now receive a maximum payment of $1,756.81 per fortnight ($45,677.05 annually). This shows an increase of $7.03 per fortnight from australian old age pension rates. Each person in a couple can get up to $1,324.26 per fortnight ($34,430.72 annually). Couples can receive a maximum of $2,648.52 per fortnight ($68,861.44 annually).
Couples living apart because of illness receive the single person’s rate. This means each partner gets $1,756.81 per fortnight. The higher rate helps cover extra costs when partners need separate living arrangements due to health issues.
How supplements are included in the total
The pension payment has three main parts:
- Basic rate – The most significant component: $1,607.43 for singles and $1,211.72 for each member of a couple
- Pension Supplement – Extra payment of $127.82 for singles and $96.33 for each partner
- Energy Supplement – Fixed amount of $21.56 for singles and $16.21 for each partner
The Pension Supplement helps people pay their utility bills, phone costs, internet charges and medicine expenses. Pensioners can receive the minimum supplement amount as a separate quarterly payment.
Transitional and Overseas Rates
Some pensioners still receive transitional rates from before September 20, 2009. These special rates protect people from any disadvantages caused by pension reforms. Current transitional rates are:
- Singles: $1,444.59 per fortnight ($1,423.03 plus $21.56 Energy Supplement)
- Couples (each): $1,165.55 per fortnight ($1,149.34 plus $16.21 Energy Supplement)
Different payment structures apply to Australians living overseas. March 2025 annual rates for overseas residents are:
- Singles: $42,945.97 ($41,793.11 basic rate plus $1,152.86 Pension Supplement)
- Couples (both eligible): $64,909.92 combined annually
- One eligible partner: $32,454.96 annually
Residency duration in Australia might reduce these overseas age pension rates. People on transitional rates will switch to current rates if they become more beneficial but cannot switch back once they have changed.
Who qualifies for the Age Pension in 2025?
Getting the Age Pension in 2025 requires more than just reaching retirement age. People need to meet specific requirements related to their age, residency status, income, and assets to receive these essential payments.
Age and residency requirements
The Age Pension starts at 67 years or older. Australian residency status plays a crucial role, too. People must be Australian residents and present in the country on their claim date. They should be Australian citizens, permanent visa holders, or New Zealand citizens with protected Special Category visas.
Most people need 10 years of Australian residency with five consecutive years. The rules are different for some groups. Refugees and former refugees don’t need to meet the 10-year requirement. Women who lost their partners can claim after living in Australia for 2 years.
Income test thresholds and exemptions
The income test sets clear limits for pension eligibility. Singles can receive a full pension if they earn up to $324.15 per fortnight. Couples can earn $568.78 combined. After these limits, the pension is reduced by 50 cents per dollar for singles and 25 cents per dollar for each person in a couple.
Singles earning over $3,837.77 per fortnight can’t get any pension payment. The same applies to couples earning over $5,865.82 combined. Some income doesn’t count in this test. Emergency relief payments, compensation for victims of National Socialist persecution, and Defence Force Reserve payments are exempt.
Assets test limits for homeowners and renters.
The assets test works differently for homeowners and renters. Single homeowners can own assets worth up to $480,102.93 for a full pension. Non-homeowners can have $865,408.47. Couples who own their home can have combined assets of $718,625.41. Non-homeowner couples can have $1,103,930.95.
Single homeowners lose their part pension if assets exceed $1,065,706.19. This limit is $1,451,011.73 for single non-homeowners. Couple homeowners face a limit of $1,601,617.27, while non-homeowner couples have a threshold of $1,986,922.81. Research shows that most part-pensioners exceed income limits rather than asset limits. All but one of these part-pensioners face income restrictions rather than asset constraints.
How payments work and what extras you can get?
Age pension recipients can boost their financial well-being by understanding payment delivery methods and extra benefits. The payment system adapts to different situations and provides several additional benefits to eligible pensioners.
Fortnightly vs weekly payments
Most people receive their Age Pension payments fortnightly, which works well for most pensioners. Weekly payments are available to recipients who are homeless or at risk of homelessness or find it hard to manage their finances. These smaller, more frequent payments might be easier to handle.
Pensioners living outside Australia have a different payment schedule. They receive payments every four weeks instead of fortnightly. The funds go directly into bank accounts in Australia or overseas and usually arrive within six days after being sent.
Advance payment options
After receiving the Age Pension for three months, pensioners can access part of their future payments. This works like a short-term loan that they pay back through reduced pension payments over the next 13 fortnights.
Full-rate pensioners can choose these options in any six months:
- One advance at the highest amount (AUD 764.50)
- Up to two advances at smaller amounts
- Three advances at the lowest amount (AUD 382.25)
Part-pension recipients get advance amounts based on their payment rate. The system automatically deducts repayments by dividing the advance amount by 13 and taking it from each following fortnightly payment.
Rent assistance eligibility
Rent Assistance helps pensioners who pay rent, with rates updated twice yearly in March and September. To qualify, you need to pay above certain thresholds and not own your home.
From March 2025, the maximum Rent Assistance rates are AUD 324.15 per fortnight for singles, AUD 216.09 for singles sharing accommodation, and AUD 305.49 for couples. Couples who live apart because of illness can each receive AUD 324.15.
You won’t get Rent Assistance if you own your home, live in government-subsidised aged care, or your partner already receives this supplement with another payment. Eligible pensioners receive 75 cents for every AUD 1.53 of rent paid above the minimum threshold up to the maximum rate.
What if your situation is unique?
The Australian pension system has become more complex for people with special circumstances. Despite that, specific provisions and rates exist to handle unique situations.
One eligible partner
A partner who reaches pension age can apply for the Age Pension even if their spouse is younger. The eligible partner gets half the combined couple rate instead of the single rate. The system looks at the couple’s finances together and assesses all assets and income, regardless of the legal ownership.
Asset thresholds differ greatly from standard rates for couples with one eligible partner. Homeowners can have combined assets up to $718,625.41 before their pension starts dropping, which goes up to $1,601,617.27 before payments stop completely. Non-homeowners get higher thresholds of $1,103,930.95 and $1,986,922.81.
Couples with an age gap have one big advantage: the younger spouse’s superannuation doesn’t count if it stays in the accumulation phase. The assessment changes once they withdraw or turn it into an income stream.
Separated due to illness
The pension rules treat “illness separated” couples differently. This applies to partners who can’t live together because either person is ill or infirm, and this separation looks permanent.
These partners each get a single pension rate, up to $3,513.62 per fortnight. The system still assesses their income and assets together.
Asset limits are more generous for illness-separated couples. Payments stop at $1,889,831.93 for homeowners and $2,275,137.47 for non-homeowners. Each partner can also get up to $324.15 in rent assistance.
Receiving a part pension
Many older Australians qualify for partial rather than full pension payments. The lower payment amount from the income or assets test determines the part pension rate. About two-thirds of part-pensioners exceed income thresholds, while one-third exceed asset limits.
Pensioners must report any changes within 14 days. This includes changes in their partner’s income or assets, relationship status, or selling their main home. Late reporting can lead to overpayments that need repayment, and hiding information could be fraud.
Conclusion – What is the age pension rates 2025?
The Age Pension system is a vital part of retirement planning for Australians. This piece covers the latest rates that kick in from March 2025. Single pensioners can receive up to $1,756.81 per fortnight, while couples can get $2,648.52 combined fortnightly. The system has strict rules about who qualifies. You must be 67 years old, meet residency conditions, and pass income and assets tests that decide how much you’ll get.
Pensioners have some choices in how they get paid. They can opt for fortnightly or weekly payments; some might qualify for advance payments. The system also helps non-homeowners through Rent Assistance when their rent exceeds certain levels.
The Age Pension works well for different life situations. The rules cover couples where only one person qualifies, partners who live apart because of illness, and people who get part pensions. However, everyone getting a pension must report any changes in their situation within 14 days to avoid paying money back.
What are the new Age Pension rates for March-September 2025?
From March 20 2025, single pensioners can receive up to $1,756.81 per fortnight, while couples can get a combined total of $2,648.52 per fortnight. These rates include the basic pension, Pension Supplement, and Energy Supplement.
How much can I have in assets and still receive the full-age pension?
Homeowners’ asset limit for a full pension is $480,102.93 for singles and $718,625.41 for couples combined. Non-homeowners have higher limits: $865,408.47 for singles and $1,103,930.95 for couples combined. These thresholds are subject to change, so checking the latest figures is best.
Can I receive advance payments on my Age Pension?
You can request advance payments after receiving the Age Pension for at least three months. Full-rate pensioners can choose between one large advance of $764.50 or multiple smaller advances within a six-month period. These advances are repaid through reduced pension payments over the following 13 fortnights.
What happens if only one partner in a couple is eligible for the Age Pension?
If only one partner has reached pension age, they can still apply for the Age Pension. The eligible partner receives half the combined couple rate. The couple’s finances are assessed together, considering all assets and income regardless of legal ownership. However, the younger spouse’s superannuation in the accumulation phase is exempt from assessment.
Is Rent Assistance available for Age Pension recipients?
Rent Assistance is available for eligible pensioners who pay rent and don’t own their home. As of March 2025, the maximum rates are $324.15 per fortnight for singles and $305.49 for couples. To qualify, you must pay rent above certain threshold amounts. The assistance increases by 75 cents for every $1.53 of rent paid above the minimum threshold up to the maximum rate.