The Centrelink Age Pension is a vital source of income for millions of Australian retirees. With indexation adjustments set for January 2025, pensioners can expect a rise in their payments to help cope with inflation and the rising cost of living. Below is a detailed breakdown of the Age Pension rates, increases, and additional support measures for 2025.
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What is the Age Pension?
The Age Pension provides financial support to eligible Australians aged 67 and over who meet income and asset test requirements. It’s paid fortnightly and is designed to ensure older Australians can maintain a basic standard of living.
Key Highlights of the 2025 Age Pension Update
- Fortnightly payments will increase from January 2025.
- Adjustments are tied to inflation and changes in the Pensioner and Beneficiary Living Cost Index.
- Rent Assistance and Energy Supplements will also see adjustments.
- Income and asset test thresholds will increase, allowing more retirees to qualify for part pensions.
New Fortnightly Payment Rates for 2025
1. Age Pension Base Rate
| Payment Type | Single | Couple Each | Couple Combined | Couple (Apart Due to Ill Health) |
|---|---|---|---|---|
| Maximum Basic Rate | $1,047.10 | $789.30 | $1,578.60 | $1,047.10 |
| Maximum Pension Supplement | $83.20 | $62.70 | $125.40 | $83.20 |
| Energy Supplement | $14.10 | $10.60 | $21.20 | $14.10 |
| Total Fortnightly Payment | $1,144.40 | $862.60 | $1,725.20 | $1,144.40 |
Note: These figures include the Pension Supplement and Energy Supplement Increase as of September 2024 till March 2025. Exact increases depend on inflation adjustments announced by the government.
2. Transitional Rates
Transitional rates apply to certain recipients who were receiving a part pension on 19 September 2009. These rates are in effect until their payments align with current standard rates.
| Payment Type | Single | Couple Each | Couple Combined | Couple (Apart Due to Ill Health) |
|---|---|---|---|---|
| Maximum Rate | $927.00 | $748.70 | $1,497.40 | $927.00 |
| Energy Supplement | $14.10 | $10.60 | $21.20 | $14.10 |
| Total Fortnightly Payment | $941.10 | $759.30 | $1,518.60 | $941.10 |
3. Pension Supplement
This additional payment, included in Age Pension rates, ensures pensioners can manage essential costs such as utilities and healthcare. It will also increase marginally in 2025, with singles receiving an additional $2-$5 per fortnight.
Income and Asset Threshold Adjustments for 2025
The Age Pension is subject to income and asset tests to determine eligibility. These thresholds will increase in 2025, allowing more Australians to qualify or retain part-pension payments.
Income Test Limits
- Single Pensioner: Increase from $204 per fortnight to ~$210.
- Couples (combined): Increase from $364 per fortnight to ~$375.
Asset Test Limits
- Single (homeowner): Increase from $301,750 to ~$310,000.
- Couple (homeowner): Increase from $451,500 to ~$463,000.
Non-homeowners enjoy higher asset thresholds due to their housing costs.
Other Benefits for Pensioners in 2025
Energy Supplement
This ongoing payment provides assistance with energy costs. While the base amount is unchanged, any additional government support programs for energy relief in 2025 will be announced in the Federal Budget.
Health and Concession Benefits
Pensioners continue to enjoy discounts on prescriptions, medical appointments, and public transport through the Pensioner Concession Card.
One-Off Cost-of-Living Payments
There’s speculation that the government may introduce one-off payments in 2025 for pensioners, as seen in previous years, to address inflation and housing costs.
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How to Check Your New Pension Rate
- Log in to your myGov account linked to Centrelink.
- Navigate to the Payments and Claims section to see your updated rates for January 2025.
- Contact Centrelink for personalized advice if your circumstances have changed.
Maximize Your Pension Benefits
- Check for Rent Assistance: If you pay rent, apply for Rent Assistance to maximize your entitlements.
- Update Your Details: Ensure Centrelink has your latest financial and living arrangements to avoid delays.
- Explore Supplements: Check eligibility for Energy Supplement and any regional or remote allowances.
Take Action Now
The Centrelink Age Pension increase for 2025 is an essential adjustment to support retirees in managing their financial needs. If you haven’t already, review your eligibility, update your myGov account, and plan your budget around the new rates.
For more information, visit the Services Australia website or contact Centrelink directly.
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