Since September 20 2025, recipients of Transitional Age Pension have received a rate increase, and for Australia’s pensioners, this is a much-needed break after a sustained increase in cost of living.
What Are The New Rates For Transitional Age Pension 2025?
As a transitional single pensioner, the increase received is $14.90, and is now $945.60. The total payment equals $959.70 payable fortnightly, approximately $24,952 per year. For couples and received $763.70 as the maximum transitional pension rate. Pensions were also increased by $12.00. The total payable fortnightly now is $774.3 and combined equals $1,548.60, which is paid every two weeks.
What Makes Transitional Pensions Different?
In 2009, the Australian Government made changes to the pension income test which means some pensioners under the new rules would receive lower payments and thus, a gobbled pension income. To protect pensioners, the Government has created transitional rates. If you were receiving a part pension on September 19, 2009, you were grandfathered to these rates, which will remain in place until the standard pension rates catch up. The downside? Holders of a transitional rate pension do not get the pension supplement, but you get the energy supplement as long as you meet the eligibility criteria around Commonwealth Seniors Health Cards.
Why the Increase Now?
The Government of Australia increases the pension rates every March and September to reflect the increasing cost of living. The pension increases are calculated based on the Consumer Price Index, wage increases, and the Pensioner and Beneficiary Living Cost Index. $14.90 every fortnight may not sound like much but that is almost $387 more a year for singles. For pensioners on a very tight budget, that increase can help cover the cost of a power bill, a grocery shop, a few tanks of petrol, or a portion of the moreAgePension ,TransitionalPension AustralianP expensive groceries.
How Does This Compare to Standard Rates?
Curiously, the standard full Age Pension rate for single individuals is $1,178.70 every two weeks (includes all supplements) which is higher than the transitional rate. Though, transitional rates only apply to part pensioners under the 2009 protections and the transitional rates.
What You Should Know
You will not need to do anything to get your higher payment- it is automatic through Centrelink. You can view your payment amount through your myGov account, the Express Plus Centrelink mobile app, or your most recent payment statement. If you are not sure if you are on a transitional rate, or you have questions about your situation, call Services Australia for individual support at 132 300.
What You Should Know
The next possible increase for the pension is on 20 March 2026. Though increases are not guaranteed, the twice-yearly system reviews it and keeps pensioners positioned as prices increase. The September 2025 increase will improve living standards for transitional rate pensioners in retirement, which is the best we can do for now.
