AGE PENSION CHANGES
From 20 September 2025
Deeming Rate Increase
The Centrelink deeming rates are used to calculate the income from financial assets such as bank accounts, investment portfolios and account-based pensions paid from super from the 1 January 2015. The deemed income is then used towards the assessment of the level of Age Pension payable under the Income Means Test.
The deeming rates are applied instead of assessing the actual income derived from these investments. The deeming rates are set by the Government and from 20 September 2025, the lower deeming rate will increase to 0.75% and the higher deeming rate will increase to 2.75% (compared to the pre 20 September 2025 rates of 0.25% and 2.25% respectively).
Age Pension Increase
The single rate of age pension will increase by $29.70 per fortnight from 20 September 2025. The couple combined rate of age pension will increase by $44.80 per fortnight from 20 September 2025.
- Single age pensioners – $1,178.70 (previously $1,149.00).
- Combine couple pensioners – $1,777.00 (previously $1,732.20).
Increase in Asset and Income Test Cut-off Limits
The part pension income test cut-off limit will increase from $2,575.40 a fortnight (single age pensioner) and $3,934.00 (couple combined) which is an increase of $59.40 and $89.60 respectively.
The asset test cut-off limits will increase by $10,000 for a single homeowner age pensioner to $714,500 and $15,000 for a homeowner couple combined to $1,074,000.
Commonwealth Seniors Health Card – increase in taxable income limit
From 20 September 2025, the income limit for entitlement to the Seniors Health Card will be:
- For individuals – $101,105 per annum (an increase of $2,080.00); and
- For couples – $161,768 per annum (an increase of $3,328.00) – combined limit