The increase to Age Pension payments from 20 September will provide welcome relief for millions of older Australians struggling with continued cost-of-living pressures, COTA Australia says.
The maximum Age Pension will increase by $36.80 to $1,237.70 a fortnight for singles and $55.60 to $1,866.00 for a pensioner couple combined
There will also be increases to Commonwealth Rent Assistance and JobSeeker, providing additional support for older renters and those seeking work who are facing particularly acute cost pressures.
COTA Australia Chief Executive Officer Patricia Sparrow said every additional dollar matters for older Australians living on tight budgets.
“At a time when many Australians, including many older Australians, are doing it tough, this increase will provide some important breathing room,” Ms Sparrow said.
“Many pensioners are carefully managing every dollar and making difficult choices about everyday essentials like groceries, energy, housing and healthcare.
“An extra $36.80 a fortnight may not dramatically change someone’s circumstances, but when household budgets are stretched this tightly, every dollar counts.
“COTA Australia’s recent State of the Older Nation report showed that around one in four older Australians are living in poverty. Increases to government payments are crucial to ensure our older Australians on the lowest incomes aren’t left to fall even further behind.”
Ms Sparrow also noted that the Federal Government is taking a measured approach to increasing deeming rates by 0.5 percent to both the below and above threshold rates, rising to 1.75 per cent below and 3.75 per cent above from 20 September 2026.
“Taking a measured approach to deeming rates, rather than imposing a significant increase all at once, is sensible,” Ms Sparrow said.
Ms Sparrow said banks need to take greater responsibility for ensuring pensioners are getting a fair return on their savings.
“Banks have a moral responsibility to make sure pensioners aren’t sitting in accounts earning less interest than the Government assumes they’re receiving.
“They should be proactively alerting customers when their savings are earning below the relevant deeming rate and helping them understand what better options are available.
“We’d also encourage every Age Pensioner with money in savings or term deposits to check the interest rate they’re receiving. If the Government assumes your money is earning a certain amount, you should make sure your bank is paying you at least that much.”
Media contact: Tamara Kotoyan, 0430 291 890 or Alana Mew, 0419 929 722