The Australian Government has officially announced significant Centrelink pension changes for the 2025–26 financial year, aiming to support retirees and low-income seniors as inflation and living costs continue to climb.
These updates cover increased pension rates, adjustments to income and asset thresholds, revised deeming rates, and superannuation policy enhancements—all geared toward improving financial security for older Australians.
Age Pension Rate Increases – Effective March 20, 2025
To ensure Age Pension payments reflect current economic realities, the government has raised pension rates from March 20, 2025. The increases offer modest yet important support to both singles and couples receiving benefits.
New Fortnightly Pension Rates:
- Single pensioners: $1,149.00
- Each member of a couple: $866.10
- Combined rate for couples: $1,732.20
These adjustments are applied automatically—no action is needed for current recipients to benefit from the revised amounts.
Updated Income and Asset Test Thresholds (2025–26)
Centrelink assesses Age Pension eligibility using income and asset tests, which have been updated for the 2025–26 financial year to better align with the current cost of living.
Asset Limits:
| Status | Homeowners | Non-Homeowners |
|---|---|---|
| Single | $314,000 | $566,000 |
| Couple (combined) | $470,000 | $722,000 |
Income Limits (before payment reduction):
- Single: Up to $212 per fortnight
- Couple (combined): Up to $372 per fortnight
Earnings above these thresholds trigger a gradual reduction in payments under Centrelink’s taper rate rules.
Deeming Rate Adjustments for 2025–26
Deeming rates—used to estimate income from financial assets like savings, shares, and term deposits—have also been revised for the new financial year:
New Deeming Rates:
- Single pensioners: First $62,600 at 0.25%
- Couples (combined): First $103,800 at 0.25%
Amounts exceeding these thresholds are assessed at higher deeming rates, impacting the final pension calculation. These updates allow many pensioners to retain more income support.
Superannuation Policy Updates – From July 1, 2025
Beginning 1 July 2025, superannuation policies will also change to further strengthen retirement readiness:
- Superannuation Guarantee (SG) increases to 11.5%
- Concessional contribution cap rises to $30,000
- Non-concessional contribution cap increases to $120,000 annually
These adjustments are intended to help working Australians grow their retirement savings more effectively within the tax-preferred superannuation system.
Snapshot of Centrelink Pension Changes for 2025–26
| Update Area | New Rule for 2025–26 |
|---|---|
| Single Pension Rate | $1,149.00 per fortnight |
| Couple Pension Rate | $1,732.20 per fortnight (combined) |
| Single Asset Limit | $314,000 (homeowner) / $566,000 (non-homeowner) |
| Couple Asset Limit | $470,000 (homeowner) / $722,000 (non-homeowner) |
| Income Threshold (Single) | $212 per fortnight |
| Income Threshold (Couple) | $372 per fortnight |
| Deeming Threshold (Single) | $62,600 at 0.25% |
| Deeming Threshold (Couple) | $103,800 at 0.25% |
| Super Guarantee Rate | 11.5% from July 2025 |
What These Changes Mean for Pensioners
The 2025–26 Centrelink pension updates highlight the government’s continued effort to provide stable and equitable financial support to older Australians. With adjustments to pension rates, thresholds, deeming rules, and super contributions, retirees will have more tools to navigate rising living costs.
Eligible pensioners should check their Centrelink details to ensure they are receiving the full benefits available under these new rules.
FAQs
Who qualifies for the Centrelink Age Pension in 2025–26?
Australians of Age Pension age who meet the updated income and asset thresholds and satisfy residency requirements are eligible.
Do I need to reapply to receive the new rates?
No. If you’re already receiving the pension and remain eligible, the new rates are applied automatically to your payments.
What if I exceed the income or asset limits?
If your financial situation goes over the new thresholds, your pension will be reduced according to Centrelink’s taper rate rules, or you may lose eligibility altogether.