A major update has arrived for millions of older Australians relying on Centrelink’s Age Pension. As of March 20, 2025, several key changes have been rolled out, including payment increases, updated asset test thresholds, and revised income support rules.
These adjustments are part of the government’s effort to help pensioners manage the rising cost of living and maintain financial stability.
Here’s everything you need to know about this shake-up and how it might impact you or your loved ones.
What’s Changed in 2025?
From March 20, 2025, the Australian Government implemented updated rates for Age Pension payments and changed the rules surrounding income and asset testing. This ensures that the Age Pension stays in line with inflation, living expenses, and economic growth.
The key updates include:
- An increase in fortnightly pension payments
- Higher asset thresholds before payments are reduced
- Changes in eligibility calculations
New Centrelink Age Pension Rates – March 2025
The updated fortnightly payment rates are as follows:
| Recipient Type | Previous Rate (Fortnightly) | Increase | New Rate (Fortnightly) | New Annual Rate |
|---|---|---|---|---|
| Single Pensioner | $1,144.40 | $4.60 | $1,149.00 | $29,874.00 |
| Each in a Couple | $862.60 | $3.50 | $866.10 | $22,518.60 |
| Combined (Couple) | $1,725.20 | $7.00 | $1,732.20 | $45,037.20 |
These payments include the base rate, pension supplement, and energy supplement.
Updated Asset Test Thresholds
The assets test affects how much Age Pension a person can receive. These thresholds have now been increased, meaning you can hold more in assets before your payment is reduced or cut off.
| Situation | Homeowner | Non-Homeowner |
|---|---|---|
| Single – Full Pension | $314,000 | $566,000 |
| Single – Part Pension Ends | $697,000 | $949,000 |
| Couple – Full Pension | $470,000 | $722,000 |
| Couple – Part Pension Ends | $1,047,500 | $1,299,500 |
These changes allow more Australians to retain their pension even as their savings or property assets grow.
How to Know If You’re Still Eligible
To continue receiving the Age Pension, you must:
- Be 67 years or older
- Be an Australian resident for at least 10 years (with some exceptions)
- Pass both the income test and asset test
If your situation changes, such as increased savings, property ownership, or additional income, it may affect your payment. It’s a good idea to regularly check your Centrelink account or speak with a representative.
What This Means for Retirees
The changes are designed to provide better financial support to pensioners without penalizing those with modest savings or assets. The increase in payment amounts and higher asset limits means:
- More pensioners will qualify for full or part payments
- Those on partial pensions may now receive larger payments
- Fewer retirees will be disqualified due to small increases in their savings
The Centrelink Age Pension shake-up of March 2025 brings much-needed improvements for senior Australians. With increased payments and higher asset thresholds, more retirees will enjoy greater financial peace of mind.
Whether you’re already receiving the Age Pension or planning to apply soon, these updates offer a more flexible and supportive system to help you live comfortably in retirement.
Stay informed, review your eligibility regularly, and make sure your details are current to make the most of these beneficial changes.
FAQs
When did the new pension rates take effect?
The changes came into effect on March 20, 2025, and will reflect in your next scheduled payment after that date.
Do I need to reapply to receive the new rates?
No. If you’re already receiving the Age Pension, the increase is automatic and will be applied to your next payment.
How can I check how much I’ll receive now?
You can log in to your myGov account linked to Centrelink or review your latest payment notification to see the updated rate.