The Age Pension increased, and previously frozen deeming rates rose by 0.5% last month on 20 September 2025.
The increase in the Age Pension is due to indexation and represents the most significant rise for pensioners in two years. However, some pensioners will see this increase absorbed by the rise in deeming rates.
The Age Pension increased by $29.70 a fortnight for singles and $44.80 for couples combined. This sees singles receive $1178.70 per fortnight, up from the previous $1149, while couples now receive $1777 per fortnight instead of $1732.20. The Age Pension is due to be indexed again in March 2026.
At the same time, deeming rates increased by 0.5% after being frozen at 0.25% and 2.25% since July 2020. The deeming rate is now 0.75% for singles with financial assets of less than $64,200 and $106,200 for couples. The deeming rate increased from 2.25% to 2.75% for those with financial assets above those thresholds.
The above changes also apply to recipients of Disability Support Pension and Carer Payment.
In August, National Seniors Australia estimated that some 470,000 people who currently qualify as part-rate pensioners under the income test will be impacted by the deeming rate change. Analysis by the University of Sydney’s Susan Thorp shows that about 4.5 million Australians receive an Age Pension. This equates to about 64% of Australians aged over 64. Of these, 25% will see their payments change due to deeming.
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