Centrelink Age Pension Just Increased: The Centrelink Age Pension has officially increased in May 2025, bringing a much-needed financial boost to over 2.6 million older Australians. As inflation continues to challenge household budgets, this pension rise and upcoming one-off support payments aim to cushion the economic blow—especially for seniors on fixed incomes. If you’re currently receiving the Age Pension or approaching eligibility, understanding how much you’ll receive, how eligibility works, and what these changes mean for your long-term financial health is essential. This guide breaks down the updated rates, eligibility rules, and payment schedules in clear, accessible language—whether you’re planning retirement or advising clients.
Centrelink Age Pension Just Increased
The Centrelink Age Pension increase in May 2025 is a welcome development for older Australians, offering relief from inflation and rising living costs. The combination of increased rates, updated income/asset limits, and one-off bonus payments provides a stronger safety net for retirees. Whether you’re already retired, planning your transition, or advising clients, staying up to date with eligibility rules and payment schedules ensures you’re not leaving money on the table.
| Aspect | Details |
|---|---|
| New Fortnightly Pension Rates | Single: $1,149.00; Couple (each): $866.10; Combined: $1,732.20 |
| Annual Pension Equivalents | Single: ~$29,874; Couple (combined): ~$45,037 |
| One-Off Support Payments | $250 in May (15–30); $750 in June (1–15) |
| Eligibility Age | 67 years and older |
| Residency Requirement | 10 years (5 consecutive) in Australia |
| Full Pension Income Limits | Single: $212/fortnight; Couple: $372/fortnight |
| Assets Limits (Homeowners) | Single: <$314k (full), <$697k (part); Couple: <$470k (full), <$1.047m (part) |
| Work Bonus | $300/fortnight employment income exempt |
| Deeming Rates (Frozen) | Lower: 0.25%; Upper: 2.25% (until 30 June 2025) |
| Official Website | Services Australia – Age Pension |
Understanding the Centrelink Age Pension in 2025
The Age Pension is a crucial income support payment for Australians aged 67 and over. It’s designed to provide a safety net for seniors who may not have enough savings or superannuation to support themselves in retirement.
Pension amounts are indexed twice yearly—in March and September—to keep up with changes in the Consumer Price Index (CPI) and Pensioner and Beneficiary Living Cost Index (PBLCI). The most recent increase in March 2025, reflected in the May 2025 disbursements, takes into account cost-of-living pressures, energy bills, rent, and essential goods.
Updated Age Pension Payment Rates (As of 20 March 2025)
These are the new payment amounts pensioners will receive from May 2025:
Fortnightly Payments
| Recipient Type | Fortnightly Rate | Annual Equivalent |
|---|---|---|
| Single | $1,149.00 | ~$29,874 |
| Couple (each) | $866.10 | ~$22,519 |
| Couple (combined) | $1,732.20 | ~$45,037 |
| Separated due to illness (each) | $1,149.00 | ~$59,748 (combined) |
These amounts include the base pension, pension supplement, and energy supplement.
One-Off Support Payments in May & June 2025
In addition to regular increases, eligible recipients will automatically receive two one-off cost-of-living payments:
- $250 payment: Paid between 15–30 May 2025
- $750 payment: Paid between 1–15 June 2025
These payments will not count as income and will not affect your existing benefits.
Who’s Eligible?
- Age Pension recipients
- Disability Support Pensioners
- Carer Payment and Parenting Payment recipients
- JobSeeker and Youth Allowance recipients
- Commonwealth Seniors Health Card holders
- Pensioner Concession Card holders
No application is needed; payments are automatic if you’re eligible as of 1 May 2025.
Age Pension Eligibility: Key Requirements
To qualify for the Age Pension in 2025, applicants must meet the following conditions:
Age Requirement
You must be 67 years or older at the time of your application.
Residency Requirements
You must:
- Be an Australian resident
- Have lived in Australia for at least 10 years, including a 5-year continuous period
Income and Assets Tests: What You Can Earn and Own
The income and assets tests determine how much pension you can receive. You can still qualify for a part pension if you’re over the full pension thresholds.
Income Test (as of May 2025)
| Status | Full Pension (Max Income) | Part Pension (Cut-Off) |
|---|---|---|
| Single | $212/fortnight | $2,510/fortnight |
| Couple | $372/fortnight (combined) | $3,836.40/fortnight |
Note: These thresholds may vary if you receive rental income, dividends, or foreign pensions.
Assets Test (as of May 2025)
Homeowners:
| Status | Full Pension (Max Assets) | Part Pension (Cut-Off) |
|---|---|---|
| Single | $314,000 | $697,000 |
| Couple | $470,000 | $1,047,500 |
Non-Homeowners:
| Status | Full Pension (Max Assets) | Part Pension (Cut-Off) |
|---|---|---|
| Single | $566,000 | $949,000 |
| Couple | $722,000 | $1,299,500 |
The Work Bonus Scheme: Keep Earning in Retirement
The Work Bonus encourages older Australians to stay in the workforce by letting you earn up to $300 per fortnight without affecting your pension payment.
You can also accrue unused Work Bonus credit up to a maximum of $11,800, which can be drawn down when you exceed the $300 threshold.
Managing Centrelink Age Pension Just Increased: Tips and Tools
- Check your MyGov account: Log in at my.gov.au to check your current payment schedule, update personal details, and submit income reports.
- Report changes promptly: If your circumstances change—e.g., selling a property or starting a part-time job—you must notify Centrelink within 14 days.
- Use the pension calculator: Estimate your eligibility using the Services Australia Pension Calculator.
Real-Life Example
Margaret, 70, from Brisbane, lives alone in a home she owns outright. She has $250,000 in savings and no other income. Based on her asset level and the new thresholds, she qualifies for a full Age Pension of $1,149 per fortnight, plus the upcoming $250 and $750 one-off payments.
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FAQs – Frequently Asked Questions
1. Will the one-off payments reduce my regular pension?
No. These are tax-free, non-assessable payments and do not affect your ongoing Age Pension or other entitlements.
2. How often do pension rates change?
Twice a year—March and September—through indexation tied to the CPI and PBLCI.
3. Can I receive a pension if I own property?
Yes, but the value of your assets (excluding your primary residence) affects your entitlement.
4. What happens if I live overseas?
If you’re outside Australia, your pension may be affected depending on how long you’ve been overseas. Payments are generally made every four weeks.
