Millions of Australians receiving Centrelink Age Pension payments are set to benefit from important adjustments starting on July 1, 2025.
These changes are aimed at making the system more accessible and responsive to the financial needs of retirees, particularly as cost-of-living pressures continue to rise.
What’s Changing with Centrelink Payments for Age Pension?
From July 1, 2025, the income and asset test thresholds for Centrelink’s Age Pension will see a 2.4% increase. This adjustment reflects the ongoing changes in Australia’s economic environment, including rising living costs.
While the base Age Pension amount remains unchanged, the new thresholds mean that more retirees will qualify for support, and some individuals currently receiving the payment may see a higher amount.
Centrelink Age Pension Rates
The standard Centrelink Age Pension will remain:
- $1,149 per fortnight for singles
- $1,732.20 per fortnight for couples
Despite these rates remaining the same, the increased income and asset thresholds will allow more Australians to meet the eligibility requirements.
Who Qualifies for the Centrelink Age Pension?
To receive Centrelink payments for the Age Pension, individuals must meet the following criteria:
- Be 67 years of age or older
- Pass both the income test and asset test
The changes to these tests, effective July 1, 2025, mean that individuals who previously did not qualify may now be eligible for Age Pension payments, or may receive a higher payment.
Changes to the Income Test
The income test thresholds are being adjusted as follows:
- Singles can now earn up to $218 per fortnight (up from $212) and still receive the full pension.
- Earnings over this amount will reduce the pension by 50 cents per dollar until the pension stops at $2,516 per fortnight.
- Couples can now earn up to $380 per fortnight (up from $372) and still receive the full pension.
- Payments for couples phase out completely at the new limit of $3,844.40 per fortnight.
Although the increase in these limits may seem small, even an additional $6 to $8 can significantly improve the financial situation of retirees, especially given the rising costs of essential goods and services.
Changes to the Asset Test
The asset test limits will also rise by 2.4% starting July 1, 2025. This adjustment will help individuals with modest assets maintain or qualify for Centrelink Age Pension payments, especially as the value of properties and savings fluctuate.
While the exact details of the new asset thresholds are not yet fully disclosed, this increase will benefit many seniors who are just on the cusp of meeting the eligibility criteria.
Additional Benefits for Age Pension Recipients
Once you begin receiving Centrelink Age Pension payments, you will also be entitled to a Pensioner Concession Card, which provides various perks, including:
- Cheaper prescription medications
- Bulk-billed GP visits under Medicare
- Discounts on utility bills, public transport, and council rates, depending on your state or territory
These benefits further enhance the value of the Age Pension, helping seniors manage their finances more effectively during retirement.
Why Are These Changes Important?
With over 2.6 million Australians already receiving the Age Pension and many more approaching eligibility, the increased income and asset thresholds are crucial in ensuring that Centrelink payments remain accessible and fair. These updates are particularly relevant as inflation continues to impact household budgets.
For those nearing retirement, now is the time to review whether they qualify for Centrelink Age Pension payments. Even a small adjustment in income or assets could mean access to substantial government support.
The changes to Centrelink Age Pension payments starting July 1, 2025, are designed to benefit retirees by increasing income and asset thresholds.
This will ensure that more Australians qualify for support, and those who already receive payments could see higher amounts. With the rising cost of living, these adjustments are timely and provide essential financial relief to those who need it most.
FAQs
When do the changes to Centrelink Age Pension payments take effect?
The adjustments to income and asset test thresholds for Centrelink Age Pension payments will take effect from July 1, 2025.
How much can I earn on the Centrelink Age Pension and still receive the full payment?
- Singles can earn up to $218 per fortnight.
- Couples can earn up to $380 per fortnight.
Earnings above these limits will reduce the pension gradually until it phases out completely at higher income levels.
How can I check if I qualify for the Age Pension?
Visit the Services Australia website or speak with a financial advisor to check your eligibility for the Centrelink Age Pension payments based on the new changes.