Starting April 2025, several government support payments in Australia, including the Age Pension, Carer Payment, and Carer Allowance, will receive a scheduled increase. This initiative is designed to help older Australians and caregivers keep pace with the cost of living. While the Disability Support Pension (DSP) will not receive an increase on April 1, it remains subject to regular biannual reviews.
Details on the Age Pension Increase
The Age Pension is a core part of Australia’s retirement system. In 2025, pension payments are projected to increase between 2.5% and 3.5%. This adjustment is based on two key economic indicators: the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).
The final adjustment will be confirmed after the government completes its economic analysis in early April 2025. These reviews ensure that pension rates keep up with inflation and national wage trends.
Eligibility and Age Pension Requirements
To qualify for the Age Pension in 2025, applicants must:
- Be an Australian citizen or permanent resident
- Be aged 67 or older as of July 2025
- Meet income and asset tests
Pension rates are reviewed twice annually—on April 20 and September 20. The next increase will be applied on April 20, 2025.
Updated Age Pension Rates for April 2025
| Payment Type | Single Beneficiaries | Couples (Living Together) | Couples (Living Apart) |
|---|---|---|---|
| Base Rate | $1,047.10 | $862.60 (each) | $1,047.10 (each) |
| Pension Supplement | $83.20 | Included above | Included above |
| Energy Supplement | $14.10 | Included above | Included above |
| Total Fortnightly | $1,144.40 | $1,725.20 (combined) | $1,144.40 (each) |
Carer Payment and Allowance Updates
From April 20, 2025, the Carer Payment and Carer Allowance will be increased to provide better financial support for individuals caring for someone with a long-term illness or disability.
- Carer Allowance: Increasing by $5.80 to $159.30 per fortnight
- UK Equivalence (for reference): Weekly rate will increase from £81.90 to £83.29
These payments are reviewed every April and September.
Enhanced Flexibility for Carers
Significant updates are being introduced to offer more flexibility to carers managing work and care responsibilities:
- Carers will now be allowed to work up to 100 hours over a 4-week period instead of being capped at 25 hours per week.
- Time spent on education, training, or volunteering will no longer count toward participation limits.
- Travel time will be excluded from work participation limits, offering more flexibility for carers in regional or remote areas.
- Carer Payments will remain active for up to six months if care obligations temporarily exceed limits. This allows for automatic reinstatement without reapplication once limits are met again.
Disability Support Pension (DSP) Update
The DSP will not see a rate increase on April 1, 2025. However, as per the standard schedule, the next review of DSP rates will occur on April 20, 2025.
Who is eligible for DSP?
- Individuals aged 21 or older (with or without children)
- Those under 21 with children in their care
- Must meet both medical and non-medical criteria as outlined by Services Australia
- A manifest grant may be issued in clear-cut cases without requiring future assessments
For comprehensive details on eligibility and documentation, individuals are encouraged to consult the Services Australia website.
Payment Dates
All pension payments are made fortnightly. The updated rates will apply starting April 20, 2025, and remain in effect until the next adjustment scheduled for September 20, 2025.
Conclusion
April 2025 marks a significant step toward improving financial stability for Australia’s pensioners and carers. With higher payments and more flexible work rules, the changes reflect the government’s efforts to align social support with modern economic realities and caregiving responsibilities.
These updates not only provide immediate financial relief but also create pathways for carers to participate in the workforce without risking their benefits.
FAQs
What is the exact date for the 2025 pension rate increase?
The pension rate increase will take effect from April 20, 2025.
Are all pensions increasing on April 1, 2025?
No. Only Carer Payments and the Age Pension are scheduled for adjustment. The Disability Support Pension will not increase on April 1.
Can I receive both the Carer Payment and Carer Allowance?
Yes, eligible individuals can receive both payments simultaneously.
Will the work-hour limit for carers change in 2025?
Yes. Carers can now work up to 100 hours over four weeks, offering greater scheduling flexibility.
How do I check if I qualify for the Age Pension?
Visit the Services Australia website and use the online eligibility tool based on age, residency, and income/assets.
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