Pension changes that commenced on 20 September 2025 could impact many older Australians, with adjustments to both indexation and deeming rates. Whether your pension increases, stays the same, or reduces slightly will depend on your individual circumstances. So how much will your Age pension change?
What’s Changing?
According to National Seniors Australia (NSA), the Age Pension will be adjusted from 20 September 2025 to reflect standard indexation and a change to deeming rates.
Potential Indexation Increases:
- Up to $29.70 extra per fortnight for singles
- Up to $22.40 each for couples
However, any increase may be offset depending on how you’re assessed under the Income Test, particularly with the upcoming change to deeming rates.
Deeming Rates Are Rising
For the first time in several years, deeming rates will increase by 0.5%. The government has lifted the freeze to better reflect the investment returns older Australians are actually receiving.
This follows a long period where rates were held steady, shielding pensioners from payment reductions during rising interest rates. While the increase is modest, it could still affect those assessed under the Income Test.
Why Some Pensions Might Decrease
Not all pensioners will benefit equally. Those whose Age Pension is assessed using the Income Test (instead of the Assets Test) may see a smaller increase—or even a reduction—in payments. This is because deeming estimates income from financial assets, and that assumed income affects how your pension is calculated.
The impact will vary depending on your financial situation, especially your savings, super, and investments.
Estimate Your Pension Change
Want to get an idea of how these changes might affect your pension?
National Seniors Australia has created a simple Deeming Estimator tool to help you understand the potential impact based on your situation. It factors in the upcoming deeming rate changes and indexation.
Click here to access the estimator on the NSA website
Note: This tool is a guide only. Centrelink will provide your actual updated payment after 20 September.
What Financial Assets Are Deemed?
Deeming applies to a wide range of financial assets, including:
- ASX-listed and international shares
- Bonds and managed funds
- Cash, term deposits, and savings accounts
- Certain income streams from superannuation
Investment properties are not deemed; instead, you report net rental income directly.
New Deeming Rates from 20 September 2025
- The first $64,200 of your financial assets will be deemed to earn 0.75%
- Amounts above $64,200 will be deemed to earn 2.75%
Final Thoughts
If you feel you need to have a discussion about your benefits and the impact to you, please reach out to our office now located at Suite 203, 39-47 Lasso Road Gregory Hills NSW 2557 or email our office at admin@rpwealthmanagement.com.au or call(02)9188 1547.
And remember, only Centrelink can confirm your updated payment, which will be available after 20 September 2025.
If you like this article, you may also like:
https://www.rpwealthmanagement.com.au/boost-your-super-after-60/
https://www.rpwealthmanagement.com.au/concession-and-health-care-cards-update-2025/
https://www.rpwealthmanagement.com.au/super-when-i-retire/
The information in this website and the links has been prepared for general information purposes only by our office and does not take into account your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax, personal or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned on this website, consult a professional financial advisor to consider whether it is suitable and appropriate for you and your personal needs and circumstances.
