From 1 July 2025, eligible Australians receiving the Age Pension and other support payments like the Disability Support Pension and Carer Payment will see a fortnightly increase in their payments.
This adjustment is part of the government’s effort to support seniors amid rising cost-of-living pressures and economic inflation.
This mid-year hike is an exceptional increase, separate from the usual March and September indexation schedule. It reflects the government’s response to additional financial strain faced by retirees.
Why the Pension Rates Are Increasing
The July 2025 pension hike is calculated using the higher value between the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI).
This ensures pension payments keep pace with inflation and avoid falling behind the actual costs incurred by retirees.
The increase supports those on fixed incomes and acknowledges rising costs in essentials like housing, healthcare, groceries, and energy bills.
New Pension Rates from July 2025
The following table outlines the updated Age Pension rates by age group and relationship status, starting from July 1, 2025:
| Recipient Category | Previous Rate (Fortnightly) | New Rate (Fortnightly) | Increase |
|---|---|---|---|
| Single (under 80 years) | $1,096.70 | $1,136.70 | $40.00 |
| Single (80 years and over) | $1,121.70 | $1,162.70 | $41.00 |
| Couple (combined, both under 80) | $1,654.00 | $1,714.00 | $60.00 |
| Couple (one or both over 80) | $1,682.00 | $1,743.00 | $61.00 |
| Energy Supplement (Single) | $14.10 | No change | – |
| Energy Supplement (Couple, each) | $10.60 | No change | – |
Note: These figures include the base rate, Pension Supplement, and Energy Supplement where applicable.
Who Will Receive the Increased Pension?
The rate adjustment is automatic and will apply to all eligible recipients of the following:
- Age Pension
- Disability Support Pension
- Carer Payment
If you already receive one of these payments and your financial situation has not significantly changed, you do not need to reapply. The increase will reflect in your next full payment cycle in July 2025.
Impact on Budgeting and Living Expenses
For many pensioners, the additional $1,000+ per year from this increase offers an opportunity to better manage essential expenses, including:
- Rising energy bills
- Grocery prices
- Rent or home maintenance
- Healthcare needs
Seniors are encouraged to reassess their monthly budgets to make the most of the additional funds.
Government’s Commitment to Seniors
The pension rate hike is part of a broader strategy by the Australian government to provide financial relief to vulnerable populations.
Further support measures, particularly for those on low incomes, may be announced in late 2025 as part of the ongoing cost-of-living support plan.
This move highlights the government’s intent to protect retirees from the disproportionate effects of inflation and to reinforce financial dignity in retirement.
The July 2025 pension increase is a welcome relief for millions of Australians facing financial strain. With rates rising by up to $60 per fortnight, seniors will be better positioned to cover everyday essentials.
This adjustment reflects ongoing efforts to ensure retirees maintain financial security and quality of life.
FAQs
Do I need to apply to receive the new pension rates?
No. The updated rates are applied automatically for all eligible recipients unless your financial circumstances have changed significantly.
When will the new pension payments start?
The increased payments will begin in the first full payment cycle of July 2025, depending on your individual schedule.
Are there any other payments increasing with this adjustment?
Yes. This increase includes Age Pension, Disability Support Pension, and Carer Payment. The Energy Supplement remains unchanged.