The Australian Government has announced changes to Centrelink payments, including the Age Pension, effective from 20 March 2025. This routine indexation aims to help pensioners cope with the rising costs of living, including inflation and increasing daily expenses. Understanding the updated eligibility criteria and revised payment rates is essential to effectively managing your finances and maximising your pension benefits.
New Age Pension Rates from 20 March 2025
|
Pension Type |
Previous Rate (fortnightly) |
New Rate (fortnightly) |
Increase |
|
Single Pensioner |
$1,144.40 |
$1,149.00 |
$4.60 |
|
Couple Pensioners (each) |
$862.60 |
$866.10 |
$3.50 |
|
Couple Pensioners (combined) |
$1,725.20 |
$1,732.20 |
$7.00 |
(All rates include Base Pension, Pension Supplement, and Energy Supplement.)
Payments are made fortnightly within Australia and every four weeks if residing overseas. Pensioners can check specific payment dates and schedules via their myGov accounts linked to Centrelink.
Understanding the Age Pension
The Age Pension provides financial assistance to senior Australians, enabling them to maintain a basic standard of living during retirement. Eligible individuals can apply for Age Pension via the myGov website or at Centrelink offices, requiring proof of identity, residency, and financial information. If ones financial circumstances change, they must promptly notify Centrelink to prevent overpayments or penalties.
Eligibility Criteria for the Age Pension (2025)
To receive the Age Pension, applicants must satisfy these requirements:
- Age: 67 years or older.
- Residency:
- Be living in Australia as an Australian citizen, permanent resident, or hold a protected Special Category Visa (SCV) from New Zealand.
- Have at least 10 years total residency, including five continuous years.
- Income and Assets Tests: Must meet the following criteria.
Income Test Limits
Your income affects pension amounts and eligibility. You can work while receiving the pension, but the amount earned could reduce your pension. The Work Bonus Scheme allows earnings up to $300 per fortnight without impacting payments.
|
Family Situation |
Income Limit for Full Pension |
Pension Cut-Off Limit |
|
Single |
Below $212 per fortnight |
Below $2,510 |
|
Couple (combined) |
Below $372 per fortnight |
Below $3,836.40 |
(Exceeding these limits reduces pension payments gradually until it ceases.)
Assets Test Limits
Centrelink assesses your total assets (excluding the family home) when determining pension eligibility:
|
Family Situation |
Homeowner Asset Limit |
Non-Homeowner Asset Limit |
|
Single |
$697,000 |
$949,000 |
|
Couple (combined) |
$1,047,500 |
$1,299,500 |
(Primary residence is exempt from asset calculations.)
Additional Benefits Available
Eligible pensioners can also access:
- Pension Supplement: Helps cover utilities, medication, and phone expenses.
- Energy Supplement: Remains unchanged, assisting with energy costs.
- Rent Assistance: Available for pensioners paying rent.
- Commonwealth Seniors Health Card: Provides discounted medications and healthcare services.
Additional Note: Disability Support Pension Update
From March 2025, Disability Support Pension (DSP) rates also increased slightly:
|
Family Situation |
Previous Fortnightly Rate |
New Fortnightly Rate |
Dollar Increase |
|
Single |
$1,144.40 |
$1,149.00 |
$4.60 |
|
Partnered (each) |
$862.60 |
$866.10 |
$3.50 |
Eligibility typically involves a medical assessment to confirm severe, ongoing disability affecting employment capabilities.
The March 2025 increase in Centrelink pensions highlights Australia’s commitment to supporting Australians in need. Pensioners should regularly review eligibility and keep informed through Services Australia and their myGov accounts. For more information, please visit the government department of social service website. If you have any questions or require guidance, please contact the LZR team.
