Retired Australians will receive an increased Age Pension payment starting this week, following the government’s 2.6% pension hike effective April 2025. The Age Pension is a lifeline for many seniors, and this rise aims to address the growing financial burden caused by inflation and high living costs.
This article covers everything you need to know about the updated payment, income and assets test thresholds, eligibility criteria, and other benefits like rental and energy support.
Who Is Eligible for the Age Pension in April 2025?
To receive the Age Pension in Australia, applicants must meet both age and residency criteria:
-
Age Requirement: You must be at least 67 years old. This applies to individuals born after April 1, 1957.
-
Residency: You must have lived in Australia for at least 10 years, with at least five of those years being continuous. Temporary or non-permanent residents are not eligible.
Income and Assets Test Requirements
The Age Pension is means-tested, so your income and assets determine the amount you receive:
Income Test:
-
Single: Full pension eligibility if income is under $212 per fortnight. Pension is reduced by 50 cents for every dollar over this threshold.
-
Couple (combined): Full pension eligibility if combined income is under $360 per fortnight.
Assets Test (excluding your primary residence):
-
Single: Full pension eligibility if assets are under $301,750. Payment is reduced by $3 per fortnight for every $1,000 over this.
-
Couple (combined): Asset threshold is $451,500. Reduced payments apply if assets exceed this value.
Updated Age Pension Rates From April 2025
Following a 2.6% CPI and PBLCI indexation, the updated fortnightly rates are:
| Category | Previous Rate | New Rate | Increase |
|---|---|---|---|
| Single | $1,116.30 | $1,144.40 | +$28.10 |
| Couple (combined) | $1,682.80 | $1,725.20 | +$42.40 |
| Couple (illness separated) | $1,116.30 per person | $1,144.40 per person | +$28.10 |
Additional Benefits You May Be Eligible For
Apart from the main pension, seniors can receive extra support:
-
Pension Supplement:
-
Single: $83.20 per fortnight
-
Couple: $125.40 per fortnight
-
-
Rent Assistance (from April 2025):
-
Single: up to $211.20 per fortnight
-
Couple: up to $199.00 per fortnight
-
-
Energy Supplement: For recipients who qualified before 2016 or under special criteria.
Transitional Pension Rates Still Apply for Some
Retirees eligible before the 2009 policy changes may receive transitional rates:
-
Single: $941.10 per fortnight
-
Couple: $759.30 per person
These rates are slightly lower than the current full pension but still come with other top-ups like the Energy Supplement.
How to Apply for the Age Pension
If you are approaching 67, you can apply up to 13 weeks before your birthday. Applications can be made via:
-
Online: Through your Centrelink account
-
In Person: At any Services Australia office
You’ll need the following documents:
-
Proof of age and ID
-
Financial records and asset statements
-
Residency documents
Once approved, payments are issued fortnightly.
Important Notes About Pension Assessments
-
Assessment Rates: Will remain unchanged until June 2025.
-
Early Access: You may request early payment if you are in financial crisis.
-
Reapply or Report Changes: Always inform Centrelink if your financial or living situation changes to avoid overpayments or delays.
Final Words
The $1,725 Age Pension payment starting this week in Australia marks a key improvement for retirees, offering greater support in a high-cost environment. Understanding eligibility, testing thresholds, and available bonuses like rent assistance or the Pension Supplement is vital for receiving the full benefits. Apply early, stay informed, and make the most of the updates available this April 2025.
FAQs
What is the age requirement for receiving the Age Pension in 2025?
You must be at least 67 years old to be eligible, applicable to anyone born after April 1, 1957.
Can temporary residents qualify for the pension?
No. Applicants must have lived in Australia for at least 10 years, with 5 years being continuous.
Will the pension increase affect my existing benefits?
No. You will continue receiving all eligible supplements, including rent and energy assistance.
How often is the Age Pension paid?
It is paid fortnightly, and you may receive a higher amount based on your income and living situation.
What if I exceed the income or assets limit?
You may still qualify for a part pension. The pension is reduced incrementally if you go over the threshold.
How do I apply for the Age Pension?
You can apply up to 13 weeks before turning 67 either online via Centrelink or at a Services Australia branch.
Click here to know more.
Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.