In a major win for senior Australians, the federal government has approved a substantial Age Pension increase amounting to $3,740.70 annually. Starting from August 2025, eligible pensioners will receive higher fortnightly payments to help offset the rising cost of living.
This adjustment is among the most generous in recent years and reflects both inflation-linked indexation and a one-time supplement aimed at supporting older citizens.
How the Increase Breaks Down
The $3,740.70 increase translates to roughly $143.10 more every fortnight for single pensioners. For couples, the combined increase totals around $215.00 more per fortnight.
These boosted payments will include updates to the base pension rate, the Pension Supplement, and the Energy Supplement. It applies automatically to those already receiving the Age Pension through Centrelink, with no need to apply separately.
Why the Government Is Increasing the Pension
The government cited cost-of-living pressures, particularly for those relying solely on income support. Essentials such as food, rent, energy, and healthcare have surged, making it harder for pensioners to maintain a basic standard of living. The new increase is designed to preserve purchasing power and offer a stronger safety net as inflation continues to challenge fixed-income households.
When Payments Will Begin
Eligible Australians will start receiving the higher Age Pension rates from the first full payment cycle in August 2025. Centrelink has confirmed that the changes will be applied automatically, and pensioners will see the updated amount reflected in their statements or myGov accounts.
New Age Pension Rates from August 2025
| Category | Previous Rate (Fortnightly) | New Rate (Fortnightly) | Annual Increase |
|---|---|---|---|
| Single Pensioner | $1,116.30 | $1,259.40 | $3,740.70 |
| Couple (combined) | $1,682.80 | $1,897.80 | $5,580.00 per couple |
| Pension Supplement (Single) | $80.10 | $90.40 | Included in total |
| Energy Supplement (Single) | $14.10 | $14.10 | No change |
Who Will Receive the Increase
All existing Age Pension recipients who meet the residency and income/asset test requirements will automatically benefit from the higher rate. This includes full pensioners and those receiving part-pensions based on their financial situation. The increase applies uniformly across Australia, regardless of state or territory.
How to Confirm Your Eligibility
Pensioners can check their eligibility and updated payment schedule by logging into their myGov account linked to Centrelink. If any personal or financial circumstances have changed, it’s essential to update them promptly to avoid delays or incorrect amounts.
What This Means for the Future
This pension rise not only provides immediate financial relief but also signals the government’s ongoing commitment to keeping retirement incomes aligned with modern living costs.
Further reviews are expected in the October 2025 federal budget, with potential for additional supplements or welfare adjustments depending on economic conditions.