Transitional Age Pension 2025: $944.50 + $14.50 Payment Rates, Eligibility & Guide

By Toni Morrison

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Transitional Age Pension 2025: $944.50 + $14.50 Payment Rates, Eligibility & Guide

Australia’s Transitional Age Pension continues to assist older Australians in retirement who fully qualify for the Age Pension. With the 2025 Transitional Age Pension, we have made increases to the payment rates, made adjustments to account for the cost of living, and made revisions to the income thresholds in order to assist older Australians in the financially challenging period of transitioning to retirement.

Updated Payment Rates for 2025

Starting March 2025, the Transitional Age Pension will pay $944.50 for each fortnight and an additional $14.50 supplement under the Pension Supplement for a single person as a base payment. For couples who will now be receiving $1,423 as a couple, these changes will address inflation and living standards, equity and fairness of payments, and the distributed payments made every 14 days. These payments will be made directly to the people’s saved account and distributed every 14 days.

Payment Type Single Couple (Combined)
Base Rate $944.50 $1,423.00
Pension Supplement $14.50 $22.00
Total (approx.) $959.00 $1,445.00

Understanding the Transitional Age Pension

The Transitional Age Pension was created to support older Australians impacted by the pension reforms from 2009, especially those who had their entitlements diminished under the new income test. It acts as a bridge pension between the older system and the current Age Pension regulations. Although the transitional rate is being gradually diminished, those who continue to receive it will do so as long as they remain eligible.

This payment ensures that individuals with entitlements before the reforms are not worse off relative to new pension recipients. The rate is still indexed every March and September.
Eligibility Requirements in 2025

  • For the Transitional Age Pension in 2025, individuals will need to satisfy the age and residence conditions and the means test thresholds.
  • You must have been a pension recipient before 20 September 2009 and impacted by the income test change.
  • You must meet the eligible Age Pension age (67 years as of July 2025).
  • You must be an Australian resident and must have lived in Australia for at least 10 years.
  • You must also satisfy the income and assets tests which determine the payable rate.

If a recipient’s income or assets go beyond these amounts, their fortnightly payments will decrease.

How to Apply for the Transitional Age Pension

Appointments are made through Service Australia (Centrelink). Potential applicants can apply online through myGov, call, or go to a Centrelink service centre. Applicants must bring proof of age, residency, taxable income, and documents proving ownership of assets or investments, and any other documents verifying what the applicants state in the forms for easier processing. The new pension will take effect after about two weeks.

Would-be applicants who are uncertain as to their entitlements may apply the online Pension Estimator Tool to approximate how much they may receive.

Benefits and Additional Support

  • On top of the base amount which is payable to the pension, recipients are also able to access other valuable benefits.
  • Pensioner Concession Card, which is a discount healthcare medicines and transport voucher.
  • Rent Assistance while living in the private or community housing.
  • Energy Supplement to ease the burden of utility costs.
  • All these benefits is to cover the recipient’s loss of personal dignity, the loss in their older and retired age years, and the loss in a personal economic flattened state.

Frequently Asked Questions

Q1. Can new applicants get the Transitional Age Pension in 2025?

New applicants are excluded access to the Transition Age Pension. Only those who transitioned under pre-2009 rules are still eligible.

Q2. Is the $14.50 supplement taxable?

No, the Pension Supplement is non-taxable and paid automatically with each pension cycle.

Q3. How often are pension rates reviewed?

Pension rates are reviewed in March and September of each year, based on inflation and wage growth data.

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