Australia’s pensioners are set to receive a welcome boost as the next pension indexation takes effect from 15 October 2025. This adjustment, which happens twice a year, aims to keep payments in line with the rising cost of living. Let’s look at how much the pension will increase, who will benefit, and what it means for millions of Centrelink recipients.
The October 2025 Pension Increase – What’s Changing
Starting from 15 October 2025, both the Age Pension and the Disability Support Pension (DSP), along with the Carer Payment, will rise following the latest Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE) data.
The government ensures that the pension amount keeps pace with inflation and average wage growth to maintain retirees’ purchasing power. This increase will automatically reflect in Centrelink accounts, meaning eligible Australians won’t need to reapply or update their details.
How Much Will the Pension Increase?
While the official figures will be confirmed closer to the date, current estimates based on inflation trends suggest that single pensioners could see an increase of around $20–$25 per fortnight, while couples may receive an additional $30–$40 combined.
Here’s a look at the expected new rates (approximate) after 15 October 2025:
| Category | Current Rate (per fortnight) | Expected New Rate (from 15 Oct 2025) |
|---|---|---|
| Single Pensioner | $1,116.30 | $1,136.50 – $1,140.00 |
| Couple (each) | $841.40 | $855.00 – $860.00 |
| Couple (combined) | $1,682.80 | $1,710.00 – $1,720.00 |
These estimates reflect the general adjustment trend from previous years, depending on inflation data to be finalized by the Australian Bureau of Statistics.
Who Will Benefit from the Increase
The rise will apply automatically to all Centrelink pension recipients, including Age Pensioners, Disability Support Pension (DSP) recipients, Carer Payment recipients, and certain veterans and income support recipients.
If you receive a part pension, your new rate will depend on your income and assets test results. The increase ensures that all eligible Australians continue to meet basic living costs as inflation and daily expenses rise.
When Will You See the Payment in Your Account?
The increased pension rates will take effect from 15 October 2025, meaning the first higher payment will land in bank accounts within the following payment cycle. Depending on your Centrelink schedule, this could be from 17–20 October 2025 for most pensioners.
To confirm the new rate, recipients can log in to their myGov account linked to Centrelink, where updated payment details will appear automatically once indexation is processed.
Why This Pension Rise Matters
With the cost of groceries, rent, and utilities still climbing across Australia, even a modest pension increase can make a meaningful difference for retirees. The government’s twice-yearly pension indexation aims to ensure that seniors don’t fall behind economically and can continue to meet essential living costs with dignity.
For many older Australians relying on Centrelink support as their primary income, this October’s rise provides welcome financial relief amid ongoing economic pressures.
Final Thoughts
The October 2025 Centrelink pension increase brings a modest but necessary rise to help older Australians navigate ongoing cost-of-living challenges. As the new rates take effect, it’s essential for pensioners to stay informed through their myGov account and official government updates to understand how much they’ll receive.
This latest rise reinforces Australia’s commitment to supporting its senior citizens and ensuring that the social security system keeps pace with modern living standards.