Australia’s Age Pension is a vital government support mechanism for older Australians, helping millions manage their living costs in retirement. As we move through 2025, significant changes are being introduced to the Age Pension, affecting eligibility, payment rates, and income and asset thresholds. This article provides a detailed overview of these changes, their impact, and how you can ensure you receive all your entitlements.
Key Changes to the Age Pension in 2025
Overview of the Centrelink Age Pension
The Centrelink Age Pension is a government aid program providing financial support to eligible Australians who have reached retirement age. As of 2025, the minimum age to qualify for the Age Pension is 67 for both men and women, with no further increases currently legislated. To be eligible, you must also meet specific residency requirements—having lived in Australia for at least ten years, with at least five of those years being continuous.
Recent and Upcoming Changes
From March 2025, the Age Pension payment rates and eligibility thresholds have been adjusted to keep pace with inflation and the rising cost of living. The most notable changes include:
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Increased Payment Rates: The maximum full Age Pension for a single person is now $1,149.00 per fortnight (about $29,874 per year), up $4.60 per fortnight. For couples, each partner receives $866.10 per fortnight (about $22,519 per year), or $1,732.20 combined, with a $3.50 per person increase per fortnight.
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Revised Income and Asset Thresholds: The income and asset limits for eligibility have been raised, allowing more retirees to qualify for full or partial pensions. For example, single pensioners can now earn up to $2,510 per fortnight (about $65,021 per year) and still qualify for a partial pension.
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July 2025 Adjustments: From July 1, 2025, the income and asset thresholds will increase by 2.4%, further expanding eligibility for many Australians.
These changes are designed to provide greater financial flexibility and support for retirees, especially in the face of economic volatility and rising living costs.
Who Is Affected by the Changes?
Current and Future Pensioners
All current and potential Age Pension recipients are affected by these changes. The increased payment rates mean that existing pensioners will see a slight boost in their fortnightly payments. Meanwhile, the higher income and asset thresholds mean that some retirees who were previously ineligible may now qualify for a full or partial pension.
How to Check If You’re Affected
Retirees are advised to review their current income and asset levels to determine if they meet the new eligibility criteria. It is essential to keep your financial and personal information up to date with Centrelink to ensure accurate assessments and timely payments.
Benefits Beyond the Pension
Recipients of the Age Pension also gain access to the Pensioner Concession Card, which provides discounts on medications, bulk-billed medical appointments, and various benefits from state, territory, and local governments.
Understanding Age Pension Eligibility
Age and Residency Requirements
To qualify for the Age Pension, you must:
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Be at least 67 years old (for those born on or after July 1, 1952).
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Have been an Australian resident for at least ten years, with at least five of those years being continuous.
Income and Asset Tests
The Age Pension is subject to two main tests:
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Income Test: Your income from all sources is assessed. If your income exceeds certain thresholds, your pension may be reduced or you may become ineligible.
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Assets Test: The value of your assets (excluding your home in most cases) is assessed. If your assets exceed certain thresholds, your pension may be reduced or you may become ineligible.
The test that results in the lower pension amount will determine your payment.
How the Changes Affect You
Increased Payment Rates
The increase in the maximum full Age Pension rate means that retirees will have more money to cover their living expenses. For example:
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Single pensioners: $1,149.00 per fortnight (up $4.60 per fortnight).
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Couples (each): $866.10 per fortnight (up $3.50 per person per fortnight).
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Couples (combined): $1,732.20 per fortnight.
Higher Income and Asset Thresholds
The revised thresholds mean that retirees can earn more and have more assets without losing their pension entitlements. For example:
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Single pensioners: Can earn up to $2,510 per fortnight and still qualify for a partial pension.
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Couples: Can earn up to $3,836.40 per fortnight and still qualify for a partial pension.
Deeming Rates
Deeming rates, which affect how income from financial assets is calculated, are also reviewed regularly. As of 2025, the deeming rates are:
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0.25% on the first $62,600 (single) or $103,800 (couple) of financial assets.
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2.25% on amounts above these thresholds.
How to Apply for the Age Pension
Applying for the Age Pension can be done online through the Services Australia website. The process involves:
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Checking your eligibility using the online tools.
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Gathering required documents (proof of age, residency, income, and assets).
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Submitting your application online or in person.
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Waiting for assessment and notification of your entitlement.
Age Pension Scheme Data Table
| Category | Single | Couple (each) | Couple (combined) |
|---|---|---|---|
| Max Full Pension (per fn) | $1,149.00 | $866.10 | $1,732.20 |
| Max Full Pension (per yr) | $29,874 | $22,519 | $45,037 |
| Income Threshold (partial) | $2,510 per fn | $3,836.40 per fn | — |
| Income Threshold (full)* | $218 per fn | $318 per fn | — |
| Assets Threshold (homeowner, full) | $321,500 | $481,500 | — |
| Assets Threshold (non-homeowner, full) | $579,500 | $739,500 | — |
Staying Informed and Maximizing Your Entitlements
It is crucial to stay up to date with the latest changes to the Age Pension. The government updates payment rates and eligibility thresholds three times a year (March, July, and September), so regular checks are recommended.
Tips for Maximizing Your Age Pension
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Keep your information up to date with Centrelink.
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Review your income and assets regularly.
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Take advantage of the Pensioner Concession Card for additional benefits.
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Seek professional advice if you’re unsure about your eligibility or entitlements.
Frequently Asked Questions (FAQs)
1. Will the Age Pension age increase beyond 67?
No, as of 2025, the Age Pension age remains at 67 for those born on or after July 1, 1952. There are no current plans to raise it further.
2. How often are Age Pension rates reviewed?
Age Pension rates and thresholds are reviewed and updated three times a year: in March, July, and September.
3. Can I still work and receive the Age Pension?
Yes, you can work and receive the Age Pension, but your income and assets will affect your eligibility and payment amount. The new thresholds allow you to earn more before your pension is reduced.
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