Good news for Aussie pensioners! From September 2025, Centrelink will bump up Age Pension payments by $250 each fortnight. This welcome increase comes at a time when many seniors are feeling the pinch from rising living costs. Here’s everything you need to know about this boost and how it’ll affect your hip pocket.
Why Are Pensions Going Up?
The $250 increase isn’t just pulled out of thin air. It’s part of Centrelink’s regular indexation process that happens twice a year to help pension payments keep pace with the cost of living.
Two main factors drive this increase:
The Cost of Living – Grocery bills, energy costs, and rent have been climbing steadily. The Consumer Price Index tracks these changes to make sure pension payments don’t fall behind.
Wage Growth – Because wages across Australia have grown strongly in 2024-25, pension payments are adjusted accordingly to keep everything fair dinkum.
Who Gets the Extra $250?
If you’re already receiving the Age Pension, you’ll get this increase automatically. Here’s who qualifies:
- Singles receiving the full Age Pension
- Couples where both partners are on the pension
- Part-pensioners (though your amount depends on your income and assets)
- Recipients of related payments like Disability Support Pension and Carer Payment
| Payment Details | Information |
|---|---|
| Increase Amount | $250 per fortnight |
| Start Date | 20 September 2025 |
| Eligible Payments | Age Pension, DSP, Carer Payment |
| Action Required | None – it’s automatic |
What Does This Mean for Your Budget?
That extra $250 every fortnight adds up to roughly $6,500 annually for singles. For couples where both receive the pension, you’re looking at around $13,000 per year. Not too shabby!
This boost can make a real difference when it comes to:
- Power Bills – Covering those eye-watering electricity and gas costs
- Groceries – Making sure you can afford fresh fruit and veg, not just tinned stuff
- Healthcare – Keeping up with scripts and doctor visits
- Getting Around – Whether it’s petrol for the car or a bus pass
Think about it this way: if you’re spending about $100 a week on groceries, this boost gives you an extra week’s worth of food shopping every month.
How to Make the Most of It
No need to ring Centrelink or fill out forms – the increase happens automatically. Your payment will simply be higher from 20 September 2025 onwards.
Here are a few tips to make this money work for you:
Cover the Basics First – Sort out bills and essentials before anything else Put Something Aside – Even $20 a fortnight builds up for emergencies Treat Yourself – Budget for something you enjoy, whether it’s a cuppa at your local café or a new book
Frequently Asked Questions
Q: Will I need to apply for this pension increase?
No worries – it’s completely automatic. Centrelink will adjust your payment without you needing to lift a finger. Just keep an eye on your bank account from 20 September 2025.
Q: I’m a part-pensioner. Will I get the full $250?
Your increase depends on your current payment rate, which is based on your income and assets. Part-pensioners will see a smaller increase, but you’ll still get something extra.
Q: Does this affect other Centrelink payments?
Yes! Other indexed payments like the Disability Support Pension and Carer Payment will also increase. Check the Centrelink website or give them a bell to confirm your specific payment.
Q: What if my circumstances have changed recently?
It’s worth updating your details with Centrelink to make sure you’re receiving the correct amount. Changes to your income, assets, or living arrangements can affect your pension payment.
Q: Is this a one-off payment or ongoing?
This is a permanent increase to your fortnightly payment – not just a one-off bonus. You’ll continue to receive this higher amount going forward, with future increases based on indexation.
