In a significant update for Australian retirees and pension recipients, Services Australia has confirmed that eligible individuals will receive a base Age Pension payment of $987.70 per fortnight, along with an additional $28.30 Pension Supplement.
These adjusted rates reflect cost-of-living increases and are designed to provide meaningful relief to low-income seniors.
This guide offers a detailed look at the updated Age Pension rates, eligibility requirements, and payment dates as of 2025, helping recipients and financial planners stay informed and prepared.
What Is the $987.70 + $28.30 Pension Payment?
The $987.70 fortnightly payment refers to the maximum base rate of the Age Pension for single individuals. In addition to this, recipients are also entitled to a Pension Supplement of $28.30, bringing the total to $1,016.00 per fortnight.
This supplement helps cover essential expenses such as utilities, communication services, and medical needs. These payments are indexed twice a year—in March and September—to reflect changes in inflation and wage growth.
Who Qualifies for the Updated Pension Payment in 2025?
To be eligible for the $987.70 base Age Pension plus $28.30 Pension Supplement, individuals must meet residency, age, and income/asset test criteria set by Centrelink and Services Australia.
General Eligibility Criteria
| Requirement | Criteria |
|---|---|
| Age | Must be at least 67 years (as of July 2023) |
| Residency | Must be an Australian resident for at least 10 years, including at least 5 years of continuous residence |
| Income Test | Single: Up to $204 per fortnight before payments reduce |
| Couple (combined): Up to $360 per fortnight | |
| Assets Test (Homeowners) | Single: Assets must be under $301,750 |
| Couple (combined): Assets must be under $451,500 |
Note: Exceeding the income or asset thresholds may lead to reduced payments or ineligibility.
Updated Fortnightly Pension Rates – March 2025
As part of the March 2025 indexation, the new pension rates are as follows:
| Payment Component | Single Person | Couple (each) |
|---|---|---|
| Base Rate | $987.70 | $744.40 |
| Pension Supplement | $28.30 | $21.30 |
| Energy Supplement | $14.10 | $10.60 |
| Total Per Fortnight | $1,030.10 | $776.30 |
These payments are deposited directly into recipients’ bank accounts every two weeks.
When Are the Pension Payments Made?
Age Pension payments are made fortnightly. While the payment cycle depends on the individual’s Centrelink schedule, most recipients receive their payments on Thursdays or Fridays.
Upcoming Payment Dates (Indicative)
| Month | Payment Dates (Single & Couple) |
|---|---|
| July 2025 | July 4, July 18 |
| August 2025 | August 1, August 15, August 29 |
| September 2025 | September 12, September 26 |
To find your exact schedule, log into your myGov account linked with Centrelink.
How to Claim the Age Pension and Supplement
Step-by-Step Process
- Create or log into your myGov account
- Link your account to Centrelink
- Submit your Age Pension claim online or at a Services Australia office
- Provide documents such as proof of age, residency, income, and assets
- Wait for assessment and approval notification
Tip
It’s advised to apply 13 weeks before reaching the pension age to ensure timely payments.
Key Benefits of the Pension Supplement
The Pension Supplement is a tax-free, non-means-tested payment included with your Age Pension. It assists with daily living expenses such as:
- Utility bills
- Phone and internet services
- Medical costs not covered by Medicare
There is no need to apply separately for the Pension Supplement—it’s automatically added for those who qualify for the Age Pension.
Additional Support Options for Pensioners
In addition to the $987.70 Age Pension and $28.30 Supplement, eligible recipients may qualify for:
- Rent Assistance
- Carer Supplement
- Concession Cards (e.g., Pensioner Concession Card)
- One-off Cost of Living Payments (announced occasionally)
Keep an eye on announcements from Services Australia for bonus payments and indexation increases.
Recent Changes You Should Know (2025)
- Indexation in March 2025 increased Age Pension by $19.60 per fortnight for singles
- Adjustments were made in response to inflation, rental pressures, and healthcare costs
- Energy Supplement remains unchanged at $14.10 for singles
These changes are part of the government’s broader cost-of-living relief package.
The 2025 update to the Age Pension and Pension Supplement ensures that eligible Australians receive up to $1,030.10 per fortnight, offering enhanced support in the face of rising living costs. Seniors are encouraged to review their eligibility and ensure their details are updated with Centrelink to receive their full entitlements without delay.
Frequently Asked Questions
1. Can I receive the Pension Supplement without the full Age Pension?
Yes, if you receive a part pension, you are still eligible for a reduced Pension Supplement, calculated in proportion to your Age Pension amount.
2. What happens if I earn above the income threshold?
If your income exceeds the set limits, your pension payments may be reduced on a sliding scale or cut off entirely, depending on your income level.
3. Are Age Pension payments taxed in Australia?
No. Age Pension and Pension Supplement payments are tax-free, provided your total income remains below the tax-free threshold for seniors.