In August 2025, both the Disability Support Pension (DSP) and the Age Pension continue to provide vital financial assistance to Australians who meet strict eligibility requirements. While both payments aim to ensure a stable income for people who cannot fully support themselves, they differ in eligibility rules, payment rates, and assessment criteria. Understanding these differences can help you determine which payment you qualify for and how much you might receive.
Purpose of the Two Pensions
The Age Pension is designed to support Australians who have reached the qualifying age and meet the residency, income, and asset requirements. The Disability Support Pension, on the other hand, is for people aged 16 and over but under Age Pension age, who have a permanent physical, intellectual, or psychiatric condition that stops them from working.
Age Requirements – August 2025
From 1 August 2025, the qualifying age for the Age Pension is officially 67 years for everyone. This completes the gradual rise in pension age from 65 to 67 over the past decade. The DSP remains available to people under the Age Pension age who meet the medical and other eligibility requirements.
Comparing Payment Rates and Conditions
While the maximum base rates for singles and couples are generally the same for the DSP and Age Pension, other conditions such as work capacity tests, medical reviews, and transition rules set them apart.
| Feature | Disability Support Pension (DSP) | Age Pension |
|---|---|---|
| Eligibility Age | 16 to 66 years and 11 months | 67 years and over |
| Residency | Must be an Australian resident (with certain exceptions) | Must be an Australian resident (with certain exceptions) |
| Medical Criteria | Must have a permanent condition preventing work | Not required |
| Maximum Single Rate (Aug 2025) | $1,116.30 per fortnight | $1,116.30 per fortnight |
| Maximum Couple Rate (Each) | $841.40 per fortnight | $841.40 per fortnight |
| Income Test | Same rules as Age Pension | Same rules as DSP |
| Asset Test | Same rules as Age Pension | Same rules as DSP |
| Medical Review | Yes – periodic reassessment possible | No |
| Transition to Age Pension | Automatic when Age Pension age is reached | N/A |
Note: Rates shown are before the September 2025 indexation update.
Transition from DSP to Age Pension
If you receive the DSP and reach Age Pension age, Services Australia will automatically transfer you to the Age Pension. This change does not generally affect your payment rate but may alter certain concession entitlements.
Key August 2025 Updates
The August 2025 pension update mainly impacts Age Pension applicants, with the qualifying age now set at 67. DSP recipients are unaffected by this age change but may benefit from minor income and asset threshold increases introduced in July.
Final Thoughts
The Disability Support Pension and Age Pension share many similarities in payment amounts but differ greatly in eligibility criteria. In August 2025, the main shift is the full implementation of the Age Pension age increase, marking an important milestone in Australia’s pension policy. Knowing which payment applies to your circumstances is essential for planning your financial future.