As Australia continues to address the challenges of an ageing population and rising cost of living, the federal government has introduced significant updates to the Age Pension system for 2025. These changes, which took effect from 10 July 2025, include adjustments to payment rates, income and asset thresholds, and eligibility requirements. For millions of older Australians relying on Centrelink’s Age Pension, understanding these updates is essential to plan their finances effectively.
Updated Age Pension Rates from 10 July 2025
The Age Pension rates are reviewed twice annually in March and September based on inflation and the Pensioner and Beneficiary Living Cost Index (PBLCI). However, the July 2025 adjustments are special mid-year increases tied to new cost-of-living measures passed in the recent federal budget.
Here’s a detailed breakdown of the new fortnightly payment rates for eligible individuals:
| Category | Old Rate (Before July 2025) | New Rate (From July 2025) |
|---|---|---|
| Single (maximum rate) | $1,116.30 | $1,142.10 |
| Couple (each, maximum rate) | $841.40 | $860.50 |
| Maximum couple (combined) | $1,682.80 | $1,721.00 |
| Pension Supplement (single) | $80.10 | $82.50 |
| Pension Supplement (each couple) | $60.40 | $61.90 |
| Energy Supplement (single) | $14.10 | $14.10 |
| Energy Supplement (each couple) | $10.60 | $10.60 |
The increases aim to relieve pressure caused by surging living costs, particularly housing, food, and energy.
Income and Assets Test Thresholds Updated
Centrelink uses both an income test and an assets test to determine how much Age Pension a person can receive. The thresholds for both tests have been increased in line with inflation and wage growth forecasts.
For singles, the income free area has risen to $204 per fortnight, while for couples combined, it’s now $360 per fortnight. Pension payments reduce by 50 cents for each dollar over these amounts.
In terms of the assets test:
- A single homeowner can now have up to $301,750 in assets before their pension is affected.
- A couple homeowner can have up to $451,500.
- Non-homeowners have higher limits: $543,750 for singles and $693,500 for couples.
These new limits will allow more retirees to access partial or full pensions.
Eligibility Age Remains at 67
As of 10 July 2023, the qualifying age for the Age Pension is 67 for both men and women. This remains unchanged in 2025. There were discussions around a further increase to 70, but the federal government has confirmed no plans for immediate implementation.
To qualify, individuals must also satisfy residency requirements, which include living in Australia for at least 10 years, with 5 years of continuous residency.
Digital Access and Application Changes
In 2025, Centrelink has also upgraded its digital platform to improve access for seniors. The myGov portal now allows real-time tracking of applications and digital income/asset reporting. For many older Australians, the interface has been made more senior-friendly, with added support for those unfamiliar with technology.
Pensioner Concessions and Bonus Support
In addition to the base pension increases, eligible pensioners can still access state and federal concessions including reduced utility bills, cheaper medicine under the PBS, and discounted public transport. A new “Cost-of-Living Support Bonus” of $280 is also scheduled to be paid in August 2025 to all full-rate pensioners.
Conclusion: What It Means for Retirees
The 2025 Age Pension updates reflect the government’s effort to protect vulnerable older Australians from economic uncertainty. Whether you’re already receiving payments or planning to apply soon, these new rates and rules offer slightly more financial breathing room, but careful management of assets and income remains crucial. Pensioners are advised to review their financial plans and, if necessary, seek advice to maximise their entitlements under the new rules.