Centrelink Age Pension 2025: Australia’s Centrelink Age Pension is a lifeline for millions of retirees, helping older Australians manage the rising cost of living. In 2025, big changes are coming to the Age Pension, and understanding these updates is essential if you want to make the most of your retirement.
Whether you’re already receiving the Age Pension or planning for it soon, this comprehensive guide will walk you through everything you need to know. We’ll explain who qualifies, how much you could get, and what these changes in 2025 could mean for your future financial wellbeing.
This article is designed for everyone – whether you’re a soon-to-be retiree, a caregiver, a financial planner, or just someone trying to help a loved one understand the system. We’ve broken it down into simple, easy-to-understand sections, with real examples, official links, and actionable advice you can trust.
Centrelink Age Pension 2025
| Feature | 2025 Update |
|---|---|
| Eligibility Age | 67 years old |
| Full Pension (Single) | $1,149.00 per fortnight [$29,874 annually] |
| Full Pension (Couple Combined) | $1,732.20 per fortnight [$45,037 annually] |
| One-off Cost of Living Bonus | $750 payment in April 2025 |
| Assets Limit (Single) | Homeowner: $314,000 / Non-Homeowner: $566,000 |
| Income Limit (Single Full Rate) | Up to $212 per fortnight |
| Work Bonus | Earn up to $300/fortnight from work without reducing your pension |
| Official Resource | Services Australia – Age Pension |
The Centrelink Age Pension changes in 2025 reflect the Australian Government’s commitment to helping seniors enjoy a secure, dignified retirement. From increased payments and a generous one-off bonus, to elevated income and assets thresholds, the updates offer welcome relief for those relying on fixed incomes.
The key to making the most of these benefits is staying informed, regularly reviewing your eligibility, and using government tools to estimate your entitlements. Every little bit counts, and understanding how the system works can help you retire smarter, not harder.
Understanding the Centrelink Age Pension
The Age Pension is a government payment for older Australians who meet certain age, residency, and income/assets criteria. It provides a safety net for those who don’t have enough superannuation or other income sources to live comfortably in retirement.
The Age Pension is indexed twice yearly to match cost-of-living changes, making it a stable and vital support for those navigating later life on a fixed income. It aims to ensure that all Australians, regardless of their work or financial history, can age with dignity and some degree of financial security.
As of July 1, 2023, the qualifying age increased to 67 years. This means that if you’re turning 67 in 2025, you might be eligible to apply, provided you meet the other conditions. This change reflects Australia’s ageing population and the increased average life expectancy.
What’s Changing in 2025?
The federal government has introduced several updates to support pensioners amidst rising living costs and housing pressures. Let’s break down the changes coming in 2025 so you can plan with confidence:
1. Increased Pension Payments (Effective March 2025)
To help combat inflation and rising living costs, Age Pension rates have been increased:
- Singles: $1,149.00 per fortnight (approx. $29,874 annually)
- Couples (combined): $1,732.20 per fortnight (approx. $45,037 annually)
These changes represent an average increase of around $20 to $30 per fortnight, depending on your individual or couple status. These increases help pensioners keep pace with inflation, which affects costs such as electricity, food, rent, fuel, and health care.
2. One-Time $750 Cost-of-Living Bonus
To provide immediate relief from high grocery bills, energy costs, and rent, the government will issue a one-off, tax-free $750 bonus in April 2025. There is no need to apply; eligible recipients will see the money automatically deposited into their nominated bank accounts.
Eligible recipients include:
- Age Pension
- Disability Support Pension
- Carer Payment
- Commonwealth Seniors Health Card holders
This payment is especially significant for those living solely on fixed incomes and will help with day-to-day essentials. It’s also a useful buffer against any unexpected bills, such as car repairs or medical costs.
3. Updated Income and Assets Test Thresholds
The Income and Assets Tests are critical in determining whether you qualify for a full or part Age Pension. In 2025, the thresholds have been increased slightly to reflect cost-of-living changes.
Assets Test (Effective March 2025)
If your total assets exceed a certain limit, your pension payment may be reduced or denied. Here’s what applies:
Full Pension Thresholds:
- Single homeowner: under $314,000
- Single non-homeowner: under $566,000
- Couple homeowners: under $470,000 (combined)
- Couple non-homeowners: under $722,000 (combined)
Part Pension Cut-Off Points:
- Single homeowner: up to $697,000
- Couple homeowners: up to $1,047,500
- Couple non-homeowners: up to $1,299,500
Income Test (Effective March 2025)
Your pension is also affected by how much income you receive from investments, work, or other sources.
Full Pension Income Limit:
- Single: up to $212/fortnight
- Couple: up to $372/fortnight (combined)
Part Pension Cut-Off Points:
- Single: up to $2,510/fortnight
- Couple: up to $3,836/fortnight
Centrelink Age Pension 2025 Check If You’re Eligible
To be eligible for the Age Pension, you must meet three key conditions:
1. Age Requirement
You must be 67 years or older from 1 July 2023. This change is now fully implemented across the board.
2. Residency Requirement
You must be:
- An Australian resident for at least 10 years total; and
- Have lived in Australia continuously for at least 5 years at some point.
Temporary absences overseas may affect your payment, so make sure to inform Centrelink of any travel plans.
3. Income and Assets Tests
Centrelink will assess your total income and assets, including:
- Superannuation balances (if accessible)
- Bank account balances
- Investment properties (excluding your principal residence)
- Shares, managed funds, and other financial instruments
- Vehicles, collectibles, and other valuables
- Use the Centrelink Pension Calculator to get a personalised estimate of your eligibility and how much you might receive.
Practical Advice: Maximise Your Pension Benefits
Want to get the most out of your Age Pension? Here are some strategic and practical tips to stretch every dollar and protect your entitlements:
1. Take Advantage of the Work Bonus
If you’re still interested in working part-time, the Work Bonus allows you to earn up to $300 per fortnight without it affecting your pension. This is a great option for retirees who want to stay active, maintain social connections, or supplement their income.
2. Consider Delaying Your Pension
If you have other income sources and don’t need the pension yet, consider deferring it. Delaying your claim may allow for higher payments in the future, especially if your current income puts you over the means test thresholds.
3. Restructure Your Finances
Consider financial strategies such as:
- Spending on exempt assets (e.g., renovating your principal home)
- Purchasing funeral bonds (up to allowable limits)
- Reviewing your superannuation access and drawdown strategy
These actions can help reduce your assessable assets and may increase your pension eligibility.
4. Reassess Your Situation in March and September
Remember, pension rates and eligibility thresholds are indexed twice a year. Rechecking your situation during these updates could open doors to increased payments or eligibility.
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FAQs On Centrelink Age Pension 2025
What is the Age Pension age in 2025?
As of July 2023, the pension age is 67 years for both men and women.
Do I need to apply for the $750 bonus?
No. If you’re eligible, the $750 cost-of-living bonus will be automatically paid into your account by Services Australia.
Is my home included in the assets test?
No. Your primary residence is not counted in the assets test, but other real estate is.
Can I work and still get the pension?
Yes. Thanks to the Work Bonus, you can earn $300 per fortnight from employment without it affecting your pension payment.
How often are Age Pension payments updated?
Pension payments and thresholds are updated in March and September each year to reflect inflation and average wages.
How do I apply for the Age Pension?
You can apply online through your myGov account, by phone, or in person at a Services Australia Service Centre. Have documents ready such as proof of identity, bank details, and income/asset information.
