Starting on March 20, 2025, Centrelink will introduce changes that will make thousands more Australian seniors eligible for the Age Pension.
These adjustments involve increases to both the income and asset test thresholds, which determine who qualifies for the Age Pension and the level of support received. Along with these changes, pension rates will also rise, helping to ease the financial pressures many Australian seniors face.
In this article, we will break down the important updates, including the new eligibility criteria, the increased payment rates, and the revised thresholds for both the income and asset tests.
Key Changes in Centrelink’s Age Pension Program
| Aspect | Details |
|---|---|
| New Eligibility Date | March 20, 2025 |
| Income Test Changes | Increases in the maximum earnable income for singles and couples. |
| Asset Test Changes | Higher asset limits for both homeowners and non-homeowners. |
| Age Pension Payment Rates | Age pension rates rise with the indexation. |
| Pensioner Concession Card | Available to part-pensioners for discounts on healthcare, medicines, and other services. |
Income Test Changes: What’s New for Seniors?
From March 20, 2025, the income test thresholds for Age Pension eligibility will rise, allowing more people to qualify for a part-pension.
- Single pensioners: They will be able to earn up to $2,510 per fortnight, an increase of $9.20 from the previous limit of $2,500.80.
- Couple pensioners: The combined earnings limit will rise to $3,836.40 per fortnight, up $14 from the earlier limit of $3,822.40.
To receive the full Age Pension, singles can only earn $212 per fortnight, while couples are limited to $372 combined per fortnight.
These figures exclude the Work Bonus Scheme, which allows seniors to earn an additional $300 per fortnight from employment without it affecting their pension.
Asset Test Changes: Higher Limits for Homeowners and Non-Homeowners
Along with changes to income, the asset test limits will also rise, allowing more seniors to qualify for a part Age Pension. The updated thresholds are as follows:
- Single homeowners: They can now have assets up to $697,000, an increase of $1,500 from the previous limit of $695,500.
- Single non-homeowners: They can have up to $949,000 in assets, an increase from $947,500.
- Couple homeowners: The new combined asset limit is $1,047,500, up by $2,000 from the earlier threshold of $1,045,500.
- Couple non-homeowners: They can now have assets up to $1,299,500, compared to the previous limit of $1,297,500.
For the full Age Pension, the asset limits are:
- Single homeowners: $314,000.
- Single non-homeowners: $566,000.
- Couple homeowners: $470,000.
- Couple non-homeowners: $722,000.
Pension Rate Increase: How Much Will Pensioners Receive?
In addition to changes in income and asset thresholds, pension rates will also increase in March 2025 due to regular indexation adjustments.
- Single pensioners: Their payment will rise by $4.60 per fortnight, bringing the total to $1,149 per fortnight.
- Couple pensioners: Each member will see an increase of $3.50 per fortnight, bringing the combined total to $1,732.20 per fortnight.
This increase is designed to help seniors cope with rising living costs, including housing, utilities, and healthcare.
The Pensioner Concession Card
In addition to the Age Pension, those qualifying for a part-pension are also eligible for the Pensioner Concession Card. This card offers various discounts, including those for healthcare, medicines, and utilities, which can total more than $1,000 annually.
Why Are These Changes Important?
These adjustments are crucial for addressing the ongoing cost-of-living pressures that Australian seniors face. With the rise in inflation and living expenses, the Australian Government has made efforts to ensure that pensioners can maintain their standard of living.
The changes are aimed at increasing the number of seniors eligible for assistance, as well as improving the financial well-being of current pension recipients.
How to Check Eligibility and Apply
Seniors interested in applying for the Age Pension or checking their eligibility can:
- Visit the Services Australia website or use the myGov app to check their status.
- Call the Centrelink hotline or visit a local Centrelink office for in-person assistance.
- Ensure all financial and personal details are up to date to avoid delays in processing.
The Centrelink changes in March 2025 provide significant financial relief to more Australian seniors by increasing income and asset thresholds, along with pension rate adjustments.
These changes ensure that more people qualify for support, helping them manage the rising cost of living. Stay informed to maximize benefits and eligibility.
FAQs
Who qualifies for the Age Pension under the new rules?
To qualify, individuals must be at least 67 years old, meet income and asset tests, and be Australian residents.
What is the Pensioner Concession Card?
The card provides discounts on healthcare, medications, and utilities, available to part-pensioners.
How often are Age Pension payments adjusted?
Payments are adjusted quarterly based on inflation through indexation, ensuring that pensioners maintain their purchasing power.