Retirement in Australia comes with both relief and responsibility. As costs of living continue to rise and inflation impacts everyday expenses, age pension payments have become more crucial than ever. To support retirees in 2025, the Australian Government has announced an increase in pension amounts along with updated income and assets thresholds. Whether you’re planning to apply or already receiving support, staying informed is essential.
This article breaks down the current Age Pension Rates, who qualifies, how your assets and income are assessed, and when you can expect payments throughout the year.
What Is the Age Pension in Australia?
The Age Pension is a regular income support payment provided by the Australian Government to individuals who have retired and meet specific age and residency requirements. It forms the financial backbone for a large number of Australians after they exit the workforce.
Roughly 8 in 10 retirees over 65 rely on this payment, and the government updates the amount twice a year, in March and September, to reflect economic changes like inflation or shifts in average earnings.
Who Is Eligible for the Age Pension in 2025?
To qualify for the Age Pension in 2025, individuals must meet all of the following criteria:
- Be aged 65 or older
- Be an Australian citizen or permanent resident
- Meet the residency requirement, having lived in Australia for at least 10 years
- Pass both the income test and the assets test
- Have your income and total assets below certain thresholds
There have been no major changes to the eligibility rules this year. However, you must make sure your deemed income and asset values fall within the new limits.
Understanding the Income and Assets Test
Centrelink determines Age Pension eligibility based on your income and the value of assets you own—excluding your primary residence. Assets include:
- Investment properties and financial holdings
- Business or trust interests
- Vehicles, superannuation, and other valuables
- Income streams, including those from international sources
The income test includes:
- Money earned through employment
- Dividends and distributions from investments
- Rental income
- Overseas pensions
The deeming rates for 2025 are frozen at:
- 0.25% for singles on financial assets up to $62,000
- 0.25% for couples on financial assets up to $103,800
This policy freeze will remain for another 12 months.
Assets Test Limits for 2025
Here’s how Centrelink evaluates pension eligibility based on your assets:
| Circumstance | Homeowner – Full Pension | Part Pension Range | No Pension Above |
|---|---|---|---|
| Single | $314,000 | $314,000 – $695,000 | $695,500 |
| Single Non-Homeowner | $566,000 | $566,000 – $947,500 | $947,500 |
| Couple (Homeowner) | $470,000 | $470,000 – $1,045,500 | $1,045,500 |
| Couple (Non-Homeowner) | $722,000 | $722,000 – $1,297,500 | $1,297,500 |
| One Partner Eligible | $470,000 (homeowner) | $470,000 – $1,045,500 | $1,045,500 |
| Illness-Separated Couple | $470,000 (homeowner) | $470,000 – $1,233,000 | $1,233,000 |
Exceeding these limits may result in receiving only a partial pension or none at all.
Updated Pension Payment Amounts in 2025
The pension amount has been increased in 2025 to reflect economic changes. The following table shows the updated fortnightly pension amounts:
| Family Situation | Previous Amount (Fortnightly) | New Amount (2025) | Total Increase |
|---|---|---|---|
| Single | $2444.60 | $2500.80 | $56.20 |
| Couple (combined) | $3737.60 | $3822.40 | $84.80 |
| Illness-Separated Couple | $4837.20 | $4949.60 | $112.40 |
These changes apply to all eligible pensioners, and the increased amount will be reflected in payments starting from March 2025.
How to Calculate Your Pension Entitlement
Centrelink provides a pension calculator that estimates how much you’re entitled to based on:
- Your income
- The value of your assets
- Home ownership status
- Relationship status
By entering your details, the calculator can give you an estimate of either a full or part pension. This is especially useful for planning your financial future before retirement.
You can access this tool through your MyGov account or directly via the Centrelink website.
Pension Payment Dates for 2025
Pension payments are made fortnightly, and while there are no major changes to the schedule, the government has spread out different deposit types—like the Disability Support Pension—on separate days to avoid system confusion.
Ensure you:
- Have correct bank details updated on your Centrelink account
- Use MyGov to track upcoming payments
- Set up SMS or email notifications for deposit alerts
What Retirees Should Keep in Mind
- The Age Pension is subject to periodic review, so even if you’re already receiving payments, your situation should be reassessed regularly.
- Keep records of changes in income or assets to avoid overpayments or interruptions.
- Use government tools to check entitlement estimates and stay on top of eligibility thresholds.
FAQs
Who is eligible for the Age Pension in 2025?
Australians aged 65 or older who meet the residency and income/asset thresholds are eligible.
How often is the Age Pension increased?
The pension is adjusted twice a year, in March and September, to reflect inflation and cost-of-living changes.
What counts as an asset for the pension test?
Assets include investment properties, business interests, vehicles, shares, and superannuation (in some cases).
Can I receive the pension if I’m still working?
Yes, but it depends on how much you earn. Exceeding income limits may reduce your payment.
What is the deeming rate and how does it work?
Deeming is a way Centrelink estimates income from financial assets. It remains at 0.25% on specified limits in 2025.
How do I update my details with Centrelink?
You can update income, assets, and contact details via your MyGov account or by contacting Centrelink directly.
When will I receive my increased pension?
The updated payment rates will begin from March 2025 and continue according to the regular fortnightly schedule.
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.
