A welcome update for many Australians, the government has confirmed a $987.70 fortnightly pension payment, accompanied by a $28.30 top-up. This increase aims to help ease cost-of-living pressures and support seniors and low-income individuals who rely on government assistance.
Understanding who qualifies, how much you’ll receive, and how to claim it is essential to ensure you don’t miss out.
What Is the $987.70 Pension Payout?
The $987.70 pension payout refers to the current maximum fortnightly rate for eligible single Age Pension recipients. This payment is part of Australia’s regular welfare system aimed at supporting retirees and certain low-income individuals.
What’s Included in the Total?
The base rate has been adjusted to match inflation and rising living costs. The $28.30 top-up is a Pension Supplement, which includes the Energy Supplement and utilities support, designed to help cover essentials such as electricity, groceries, and medical expenses.
Who Qualifies for the Full Payment?
Eligibility for the full $987.70 + $28.30 payout depends on a few key factors. Below are the primary eligibility requirements:
- Age: You must be of Age Pension age (currently 67 for people born after 1957).
- Residency: You must be an Australian resident and have lived in Australia for at least 10 years.
- Income Test: Your income must not exceed a certain threshold. For single individuals, the limit is generally $204 per fortnight to receive the full amount.
- Assets Test: Your total assets must be below the set threshold (varies for homeowners vs. non-homeowners).
Fortnightly Payment Breakdown
Here’s a breakdown of how the total payment is structured for single pensioners:
| Component | Amount (Fortnightly) |
|---|---|
| Base Pension Rate | $1,002.50 (including supplements) |
| Pension Supplement | $28.30 |
| Total Payment | $987.70 + $28.30 = $1,016.00 |
Note: Due to deductions such as rent assistance or taxation in unique cases, the actual deposited amount may slightly differ.
Partnered Pensioners – What About Them?
Partnered pensioners also receive an increase. The maximum combined payout for a couple is approximately $1,492.80 per fortnight ($746.40 each), including the same $28.30 supplement split per person.
How to Claim the Pension
If you meet the eligibility criteria, follow these steps to claim your Age Pension:
- Create or log into your myGov account.
- Link Centrelink to your account.
- Submit your claim online by providing identification, financial details, and residency documents.
- Track the progress and respond to any additional document requests.
Processing usually takes several weeks. The earlier you apply before reaching pension age, the smoother the transition.
Key Factors That Affect Your Payment
Several factors can reduce or increase your pension payout:
- Other income from employment, superannuation, or rental properties
- Changes in marital status
- Changes in living arrangements or home ownership
- Medical or carer status updates
It is important to report changes in your situation promptly to avoid overpayments or penalties.
What the $28.30 Supplement Covers
The Pension Supplement is designed to assist with:
- Electricity and gas bills
- Telephone and internet access
- Transport fares
- Pharmaceutical and healthcare costs
This non-taxable supplement is automatically included in the fortnightly payment and indexed twice a year.
When Will You Receive It?
The updated payments have already started reflecting in the May 2025 cycle. Most eligible recipients will receive the full amount in their next scheduled fortnightly payment. The update is automatic if you’re already on a qualifying pension.
The $987.70 pension payout plus the $28.30 top-up is a crucial financial boost that helps Australian retirees maintain a basic standard of living. With rising living costs, these adjustments offer much-needed relief.
If you’re of pension age or nearing it, make sure you check your eligibility, update your details with Centrelink, and claim your entitlement quickly.
Being informed today could mean extra cash in your bank tomorrow—don’t miss out on your rightful support.
FAQs
Do I need to apply separately for the $28.30 supplement?
No. If you’re eligible for the Age Pension, the Pension Supplement is automatically included in your total payment.
Can I receive the full amount if I have a part-time job?
Yes, but your income must be within the allowable threshold to receive the full $987.70 + $28.30.
What happens if my partner also gets the pension?
You will both receive a partnered rate, which is lower individually but totals more as a household.