Over 2.6 million age pensioners will see more money in their bank accounts every fortnight.
From 20 September, people receiving the full single rate of Age Pension, Disability Support Pension or Carer Payment (about 1.8 million older Australians) will see a $29.70 increase to their fortnightly payment (taking it from $1,149.00 to $1,178.70) and for couples, by $22.40 each per fortnight (taking the combined payment from $1732.20 to $1777.00).
However, the Albanese Government is, from 20 September, taking back some of that money by lifting the deeming rate that has been frozen for three years from today’s level of 0.5% to 0.75% to financial assets under $64,200 for singles and $106,200 for couples combined. Assets over this amount will be deemed at a rate of 2.75%.
“Any decrease in fixed incomes is difficult for people to manage,” COTA Australia Chief Executive Officer Patricia Sparrow said. “However, staging the changes and coupling the introduction of the change with one of the largest pension increases in the past 60 years should offset the impact for many pensioners.”
COTA Australia is reminding pensioners that many banks already offer “deeming accounts” which guarantee returns that match the Government’s deeming rates – and that in some cases, better returns may be available elsewhere.
“Pensioners shouldn’t assume their bank is giving them the best deal. Many banks do offer special ‘deeming accounts’ that match the Government’s deeming rate, but in some cases you can find products that deliver even higher returns,” Patricia said.
“We’re urging people to call their bank today, check what they’re earning, and make sure their savings are working as hard as they can.”
From 20 September 2025, singles with taxable income below $101,105 and couples with combined income below $161,768 may be eligible for a Commonwealth Seniors Health Card (CSHC).
People receiving Commonwealth Rent Assistance will also see an increase to their payment.