Effective March 20, 2025, the Australian Government will adjust Centrelink Age Pension rates as part of its regular indexation process.
This adjustment aims to ensure that pension payments align with the current cost of living, providing financial support to eligible Australians.
This comprehensive guide details the revised pension rates, eligibility criteria, payment schedules, and additional benefits to help recipients understand and maximize their entitlements.
Overview of the Age Pension
The Age Pension is a government-provided income support payment for older Australians who meet specific age, residency, income, and assets criteria.
It serves as a safety net for those who may not have sufficient superannuation or other income sources in retirement. The payment is made fortnightly and includes supplements to assist with essential living expenses.
Revised Age Pension Rates from March 20, 2025
The upcoming adjustments will see a modest increase in pension payments. The table below outlines the revised fortnightly payment rates:
| Recipient Category | Previous Total Payment (per fortnight) | Increase (per fortnight) | New Total Payment (per fortnight) |
|---|---|---|---|
| Single | $1,144.40 | $4.52 | $1,148.92 |
| Couple (each) | $862.60 | $3.41 | $866.01 |
| Couple (combined) | $1,725.20 | $6.82 | $1,732.02 |
Eligibility Criteria for the Age Pension
To qualify for the Age Pension, applicants must meet the following requirements:
- Age Requirement
- Must be at least 67 years old.
- Residency Requirements
- Must be an Australian resident for at least 10 years, with at least five of those years being continuous.
- Certain exemptions apply, such as for refugees and individuals under international social security agreements.
- Income and Assets Tests
- Applicants must undergo means testing to determine the level of pension payable.
Income and Assets Tests Details
The means testing process assesses both income and assets to determine eligibility and payment rates.
Income Test
The income test evaluates the amount of income an individual or couple receives. The table below outlines the income thresholds.
| Status | Income Threshold for Full Pension (per fortnight) | Income Cut-off for Part Pension (per fortnight) |
|---|---|---|
| Single | Up to $190 | $2,115.20 |
| Couple | Up to $336 (combined) | $3,237.60 (combined) |
Assets Test
The assets test considers the value of assets owned, excluding the primary residence. The following table details the asset thresholds:
| Status | Homeowner Asset Limit for Full Pension | Non-Homeowner Asset Limit for Full Pension | Homeowner Asset Limit for Part Pension | Non-Homeowner Asset Limit for Part Pension |
|---|---|---|---|---|
| Single | $280,000 | $504,500 | $622,250 | $846,750 |
| Couple | $419,000 (combined) | $643,500 (combined) | $935,000 (combined) | $1,159,500 (combined) |
Payment Dates and Schedules
Age Pension payments are disbursed fortnightly. The new rates will take effect from March 20, 2025. For those residing overseas, payments are made every four weeks, with specific dates outlined by Services Australia.
Additional Supplements and Benefits
Beyond the base pension rate, recipients may be eligible for additional supplements:
1. Pension Supplement
Assists with daily living expenses, including utilities and pharmaceuticals.
2. Energy Supplement
Provides additional support for energy costs.
3. Rent Assistance
Available to those who rent privately and meet eligibility criteria.
4. Concession Cards
Such as the Pensioner Concession Card, offering discounts on various services.
FAQs
When will the new Age Pension rates be implemented?
The revised rates will be effective from March 20, 2025.
How often are Age Pension rates adjusted?
Rates are reviewed and adjusted biannually, in March and September, to reflect changes in the cost of living.
Does my primary residence count towards the assets test?
No, the primary residence is exempt from the assets test.
