If you’re a senior living in Australia and depending on the Centrelink Age Pension, the coming financial year brings good news. Starting 20 March 2025, pension payments will increase as part of the government’s bi-annual indexation. This adjustment aims to help older Australians keep up with rising living costs, especially essentials like healthcare, energy bills, and everyday expenses.
Whether you’re already receiving the Age Pension or preparing to apply, it’s crucial to understand how the updated rates and income/asset thresholds may affect your payments.
Let’s walk you through the key changes, who qualifies, and when you can expect your next deposit.
What Are the New Age Pension Rates from March 2025?
From March 20, 2025, eligible pensioners will receive slightly higher fortnightly payments. These increases apply to both singles and couples.
Revised Pension Amounts
-
Single Pensioners:
- Base Rate: $1,051.30 (up by $4.20)
- Pension Supplement: $83.60 (up by $0.40)
- Energy Supplement: $14.10 (unchanged)
- Total: $1,149.00 per fortnight
-
Couples (Each):
- Base Rate: $792.50 (up by $3.20)
- Pension Supplement: $63.00 (up by $0.30)
- Energy Supplement: $10.60 (unchanged)
- Total (Each): $866.10
- Combined Total: $1,732.20 per fortnight
These rates are indexed every March and September to reflect inflation and maintain purchasing power for pensioners.
Who Is Eligible for the Age Pension in 2025?
To receive the Age Pension, you must meet several basic criteria set by Services Australia:
1. Age Requirement
You must be 67 years old or above as of 2025.
2. Residency Status
- You must be an Australian resident for at least 10 years, with five continuous years.
- There are exceptions for refugees and humanitarian entrants.
3. Income and Assets Tests
Centrelink uses both income and asset thresholds to determine how much you’ll receive. Your pension may be reduced or cut off if your income or assets exceed the allowed limits.
Income Test Thresholds (Per Fortnight)
| Status | Full Pension | Part Pension Cut-Off |
|---|---|---|
| Single | Below $212 | Up to $2,510 |
| Couple (Combined) | Below $372 | Up to $3,836.40 |
Payments are reduced by 50 cents for every dollar earned over the full pension threshold.
Assets Test Thresholds
| Status | Full Pension Max | Part Pension Max |
|---|---|---|
| Single Homeowner | $314,000 | $697,000 |
| Couple Homeowners | $470,000 | $1,047,500 |
| Single Non-Homeowner | $566,000 | $949,000 |
| Couple Non-Homeowners | $722,000 | $1,299,500 |
Note: Your primary residence is exempt from this assessment.
If your assets exceed the limit for a full pension but remain under the maximum for a part pension, you’ll still receive reduced payments.
When Will the Payments Be Made?
Pension payments are disbursed fortnightly within Australia and every four weeks for residents living overseas.
Key Dates for March 2025 and Beyond:
- Within Australia: First payment reflecting the new rates — March 20, 2025
- Outside Australia:
- March 6, 2025 (Covers Feb 6 – Mar 5)
- April 3, 2025 (Covers Mar 6 – Apr 2)
To view your upcoming payments, log in to your myGov account linked with Centrelink.
What Other Benefits Come with the Age Pension?
Apart from the core payment, pensioners can access supplements and additional support that help with everyday costs.
1. Pension Supplement
A regular supplement to help with expenses like utilities, pharmaceuticals, and communications.
2. Energy Supplement
Extra support to manage energy and utility bills, particularly helpful during colder months.
3. Rent Assistance
If you don’t own your home, you might qualify for extra help with rent, depending on your living arrangements.
4. Commonwealth Seniors Health Card
Grants access to discounted medications, healthcare services, and bulk-billed GP visits for eligible pensioners.
How to Maximize Your Pension Benefits
To ensure you’re receiving the correct amount:
- Keep your income and asset information updated via Centrelink or myGov.
- If your circumstances change (e.g., inheritance, sale of property), notify Centrelink immediately.
- Use the Services Australia online pension estimator to calculate your potential entitlements.
- Seek professional financial advice if you’re unsure about how your savings or assets affect your pension.
Final Thoughts
The March 2025 Centrelink Age Pension increase is a welcome step to help pensioners maintain a decent quality of life. While the rise may seem modest, every dollar counts when facing growing living costs.
Whether you’re a retiree already on the pension or preparing to apply, understanding the new rates, eligibility tests, and supplements is key to making informed financial decisions.
If you’re ever in doubt, speak with a Centrelink representative or a registered financial adviser who can walk you through your specific situation.
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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.
