As of March 20, 2025, the Australian Government has implemented adjustments to the Age Pension rates to assist retirees in managing the rising cost of living.
These changes are particularly relevant as of April 2025, and it’s essential for current and prospective pensioners to understand the updated payment amounts, eligibility criteria, and application procedures.
Updated Age Pension Payment Rates
The Age Pension provides financial support to eligible Australians who have reached retirement age. Payment rates are reviewed and adjusted biannually to reflect changes in the cost of living. The latest adjustments, effective from March 20, 2025, are as follows:
| Recipient Type | Fortnightly Payment (AUD) | Annual Payment (AUD) |
|---|---|---|
| Single | $1,149.00 | $29,874.00 |
| Couple (each) | $866.10 | $22,518.60 |
| Couple (combined) | $1,732.20 | $45,037.20 |
Note: These amounts include the base rate, Pension Supplement, and Energy Supplement.
Eligibility Criteria for Age Pension
To qualify for the Pension in 2025, applicants must meet the following requirements:
- Age Requirement: Must be 67 years or older.
- Residency:
- Must be an Australian resident and have resided in Australia for at least 10 years, with at least 5 years of continuous residence.
- Income and Assets Tests: Applicants must undergo assessments to ensure their income and assets fall below specified thresholds.
Income and Assets Tests
The Age Pension is subject to means testing, which includes both income and assets assessments:
- Income Test:
- Single: Can earn up to $212 per fortnight before the pension is affected.
- Couple (combined): Can earn up to $372 per fortnight before the pension is affected.
- Income exceeding these thresholds may reduce the pension amount by 50 cents for every dollar over.
- Assets Test:
- Homeowners:
- Single: Assets must be less than $314,000.
- Couple (combined): Assets must be less than $470,000.
- Non-homeowners:
- Single: Assets must be less than $566,000.
- Couple (combined): Assets must be less than $722,000.
- Homeowners:
Note: Assets exceeding these limits may result in a reduced pension or disqualification.
How to Apply for the Age Pension
If you meet the eligibility criteria, you can apply for the Age Pension through the following methods:
- Online: Via your myGov account linked to Centrelink.
- In Person: Visit a local Centrelink service center for assistance.
It’s advisable to apply up to 13 weeks before reaching the eligible age of 67 to allow sufficient processing time.
Reviewing and Updating Your Information
Regularly reviewing and updating your personal and financial information with Centrelink is essential. Changes in income, assets, or marital status can affect your Age Pension entitlements. Promptly reporting any changes ensures compliance and accurate payment adjustments.
The Centrelink Age Pension increase effective March 20, 2025, provides additional financial support to Australian retirees.
Understanding the updated payment rates, eligibility criteria, and application procedures is crucial for those receiving or considering applying for the Age Pension. Staying informed and proactive ensures you receive the benefits you’re entitled to.
FAQs
How often are Age Pension rates reviewed?
Age Pension rates are reviewed and potentially adjusted twice a year, in March and September, to reflect changes in the cost of living.
Can I receive the Age Pension if I have superannuation?
Yes, but your superannuation is considered an asset and will be assessed under the income and assets tests, which may affect your pension eligibility and payment amount.
What should I do if my financial situation changes after being granted the Age Pension?
You must inform Centrelink promptly of any changes in your income, assets, or personal circumstances to ensure your pension payments remain accurate and to avoid overpayments or underpayments.