The Age Pension remains a vital financial support for older Australians, and 2025 has brought some significant updates that recipients and future retirees need to be aware of. These changes are part of the government’s annual adjustment based on inflation and wage growth, ensuring that pensioners keep up with the cost of living. This article breaks down the new payment rates, updated thresholds, and eligibility requirements now in effect.
What’s Changing from July 2025?
Starting from July 1, 2025, the Department of Social Services has revised the Age Pension rates, income and asset test thresholds, and partnered pensioner benefits. These adjustments reflect changes in the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index, which influence how pension payments are calculated.
For single pensioners, the base rate has increased slightly to account for rising expenses. Couples receiving the pension jointly will also see an uplift in their combined fortnightly payments. These changes help protect vulnerable retirees from economic pressures such as inflation, housing, and healthcare costs.
Updated Age Pension Rates for July 2025
Here are the new fortnightly payment rates effective from 1 July 2025:
| Pensioner Type | Base Rate | Supplement | Energy Supplement | Total Payment (Fortnightly) |
|---|---|---|---|---|
| Single | $1,084.00 | $81.60 | $14.10 | $1,179.70 |
| Couple (each) | $817.40 | $61.50 | $10.60 | $889.50 |
| Couple (combined) | — | — | — | $1,779.00 |
These figures reflect modest increases across all components of the pension and aim to ensure a fair standard of living for older Australians.
Income and Asset Tests – New Thresholds
Eligibility for the full or part Age Pension also depends on the income and asset tests. From July 2025, the income threshold for a single pensioner to receive the full pension has been raised to $204 per fortnight. For couples, this limit is now $360 combined per fortnight. Any income above these limits reduces the pension at a rate of 50 cents per dollar (singles) or 25 cents per person (couples).
As for the assets test, homeowners and non-homeowners now have higher threshold limits. For single homeowners, the asset cut-off is around $674,000, while non-homeowners can hold up to $896,500 in assets before losing eligibility. For couples, the respective limits are approximately $1,012,500 (homeowners) and $1,235,000 (non-homeowners). These updates make it easier for people with modest savings or assets to still qualify for support.
Residency and Age Requirements in 2025
The Age Pension age remains at 67 for those reaching that milestone in or after July 2023. You must also be an Australian resident for at least 10 years, with at least 5 of those years being continuous. Exceptions apply for certain humanitarian migrants and international social security agreements.
What Pensioners Need to Do Now
If you’re already receiving the Age Pension, the changes will be applied automatically by Centrelink. However, it’s important to update your financial details if your circumstances have changed such as bank savings, superannuation balance, or asset ownership since this may affect your payment rate. For new applicants turning 67 soon, it’s advisable to start the process early through Services Australia or your MyGov account.
Cost of Living Adjustments and Future Forecasts
With inflation remaining a pressing issue, these pension updates are expected to bring some relief. However, advocacy groups continue to call for more frequent indexation or a living wage-linked model for Age Pensions to better reflect retirees’ financial needs, especially in areas like aged care, rent, and medical expenses.