In May 2025, the Australian government implemented a significant increase to the Centrelink Age Pension, aiming to provide enhanced financial support to over 2.6 million older Australians.
This adjustment addresses the rising cost of living and includes both regular payment increases and one-off support payments.
Updated Fortnightly Age Pension Rates
Effective from March 20, 2025, the Age Pension rates have been adjusted as follows:
| Recipient Type | Fortnightly Rate | Annual Equivalent |
|---|---|---|
| Single | $1,149.00 | ~$29,874 |
| Couple (each) | $866.10 | ~$22,519 |
| Couple (combined) | $1,732.20 | ~$45,037 |
| Separated due to illness | $1,149.00 (each) | ~$59,748 (combined) |
These rates encompass the base pension, pension supplement, and energy supplement.
One-Off Cost-of-Living Support Payments
To further assist seniors, the government announced two one-off cost-of-living support payments:
- $250 Payment: Scheduled between May 15–30, 2025.
- $750 Payment: Scheduled between June 1–15, 2025.
These payments are non-taxable and do not affect existing Age Pension entitlements.
Eligibility Criteria for the Age Pension
To qualify for the Centrelink Age Pension in May 2025, applicants must meet the following criteria:
- Age Requirement: Must be 67 years or older.
- Residency Requirement: Must have been an Australian resident for at least 10 years, with at least 5 of those years being continuous.
- Income and Assets Tests: Must fall within specified income and asset thresholds.
Income and Assets Tests
Income Test
| Status | Full Pension (Max Income) | Part Pension (Cut-Off) |
|---|---|---|
| Single | $212/fortnight | $2,510/fortnight |
| Couple | $372/fortnight (combined) | $3,836.40/fortnight |
Income exceeding these thresholds may reduce the pension amount.
Assets Test
Homeowners:
| Status | Full Pension (Max Assets) | Part Pension (Cut-Off) |
|---|---|---|
| Single | $314,000 | $697,000 |
| Couple | $470,000 | $1,047,500 |
Non-Homeowners:
| Status | Full Pension (Max Assets) | Part Pension (Cut-Off) |
|---|---|---|
| Single | $566,000 | $949,000 |
| Couple | $722,000 | $1,299,500 |
Assets exceeding these limits may lead to a reduction or cancellation of the Age Pension.
Work Bonus Scheme
The Work Bonus allows eligible pensioners to earn up to $300 per fortnight from employment without affecting their pension.
Unused amounts can accumulate up to $11,800, providing flexibility for those who choose to work intermittently.
Managing Your Centrelink Age Pension
To effectively manage your Age Pension, consider the following:
- MyGov Portal: Use the MyGov website to check payment schedules, update personal details, and report income.
- Reporting Changes: Notify Centrelink within 14 days of any changes in circumstances, such as income, assets, or living arrangements.
- Pension Calculator: Utilize the Services Australia Pension Calculator to estimate your eligibility and payment amounts.
The May 2025 increase in the Centrelink Age Pension provides much-needed financial relief to older Australians amidst rising living costs.
By understanding the updated rates, eligibility criteria, and available support payments, seniors can better navigate their retirement finances and ensure they receive the benefits they are entitled to.
FAQs
Do I need to apply for the one-off support payments?
A: No, eligible recipients will receive the payments automatically; no separate application is required.
Will the one-off payments affect my regular Age Pension?
A: No, these payments are non-taxable and do not impact your existing Age Pension entitlements.
How can I check my eligibility for the Age Pension?
A: You can use the Services Australia Pension Calculator or consult with Centrelink directly to assess your eligibility based on age, residency, income, and assets.