After Australia’s confirmation on the latest changes on the Transitional Age Pension for 2025, eligible Pensioners can receive, by 20 September 2025, $959.70 on a fortnightly basis after the latest adjustment. This marks an increase of 14.90 in the fortnightly rates and demonstrates the much-needed relief in the financial conditions for older Australians whose cost of living keeps increasing.
What is the Transitional Age Pension?
Transitional aged pension rates are paid on the basis that had the 2009 income test changes not been introduced, a payment lower than a certain threshold would have been applied. This form of special pension is designed to ensure that particular recipients of the Age Pension are not worse off as a result of these policy changes and are able to receive payments under the old policy system that are more generous.
The transitional pension, unlike the standard Age Pension, has different attributes. If you’re being paid a transitional rate of pension, you do not qualify for the pension supplement, but you may receive the energy supplement (if you held a Commonwealth Seniors Health Card issued before 20 September 2016).
Projected Payment Rates for 2025
| Pension Type | Fortnightly | Annual |
|---|---|---|
| Single Pensioner | $959.70 | $24,952 |
| Partnered Pensioner (each) | $774.30 | $20,132 |
| Couple (combined) | $1,548.60 | $40,264 |
Eligibility Requirements
The Eligibility criteria for the Transitional Age Pension for 2025 is as follows:
People must be a minimum of 67 years of age to receive any payment for the Age Pension.
Residency Requirements: you must have lived in Australia for 10 years with five years of it being continuous.
People on transitional rates have been on part pensions as of 19th September 2009.
Like with all Age Pension payments, it is income and assets tested.
How the Payment System Works
The pension is paid on a bi-weekly schedule and receives automated increments every March and September. It’s fully passive on your end. There’s no action required from your side. The government adjusts the rates based on the general cost of living and wage growth so that pensioners do not lose purchasing power. The Age Pension is a payment that is subject to tax. Tax will not be deducted; however, you may request for tax to be deducted. This is a useful tactic to avoid tax liabilities at the end of the taxation year.
Asset and Income Limits
Transitional pensioners face specific asset and income thresholds. From 20 September 2025, the transitional rate pension will be removed if your assets exceed the specified upper limit. These thresholds, upper and lower, are updated consistently to the advancement of the economy and living costs. Transitional pensioners are subject to the Work Bonus scheme which permits recipients to earn a certain amount of income from paid work without their pension payment being reduced.
Application Process
In case you think you qualify for the transitional pension, you may start by contacting Services Australia using the Centrelink portal. Recipients don’t need to submit a form to get an increase in rates, these are automatically assigned. However, they must ensure that their contact details are accurate, and any changes in their situation that could impact their eligibility must be reported.
