In May 2025, the Centrelink Age Pension was significantly increased, providing essential financial support to over 2.6 million older Australians.
As inflation continues to challenge household budgets, this pension rise, combined with one-off support payments, is designed to ease the financial strain, particularly for seniors who rely on fixed incomes.
Whether you are receiving the Age Pension or preparing to apply, understanding the updated rates, eligibility criteria, and payment schedules is key.
This guide offers a comprehensive breakdown of the changes, ensuring you stay informed about your benefits.
Key Updates on the Centrelink Age Pension
The Age Pension increase in May 2025 is a much-needed boost for older Australians, providing relief amidst ongoing economic pressures like inflation.
The increase includes new fortnightly rates, updated income and asset limits, and one-off payments aimed at helping seniors with everyday living expenses.
Breakdown of Key Details
| Aspect | Details |
|---|---|
| New Fortnightly Rates | Single: $1,149; Couple (each): $866.10; Combined: $1,732.20 |
| Annual Payment Equivalents | Single: ~$29,874; Couple (combined): ~$45,037 |
| One-Off Support Payments | $250 in May (15–30); $750 in June (1–15) |
| Eligibility Age | 67 years and older |
| Residency Requirement | 10 years in Australia, 5 consecutive years |
| Full Pension Income Limits | Single: $212/fortnight; Couple: $372/fortnight |
| Assets Limits (Homeowners) | Single: <$314k (full), <$697k (part); Couple: <$470k (full), <$1.047m (part) |
| Work Bonus | $300/fortnight employment income exempt |
| Deeming Rates (Frozen) | Lower: 0.25%; Upper: 2.25% until June 30, 2025 |
| Official Website | Services Australia – Age Pension |
What Are the New Age Pension Payment Rates?
As of March 2025, the Centrelink Age Pension has been updated to reflect the ongoing cost-of-living pressures faced by seniors. Here are the revised fortnightly payment rates effective from May 2025:
| Recipient Type | Fortnightly Rate | Annual Equivalent |
|---|---|---|
| Single | $1,149.00 | ~$29,874 |
| Couple (each) | $866.10 | ~$22,519 |
| Couple (combined) | $1,732.20 | ~$45,037 |
| Separated due to illness | $1,149.00 (each) | ~$59,748 (combined) |
These payments now include the base pension, pension supplement, and energy supplement.
One-Off Cost-of-Living Support Payments (May & June 2025)
In addition to the regular pension increase, eligible recipients will also receive two one-off support payments:
- $250 Payment: Paid between May 15–30, 2025
- $750 Payment: Paid between June 1–15, 2025
These one-off payments will not affect existing Age Pension payments and will not be counted as income.
Who Is Eligible for the Age Pension?
The Age Pension is available to:
- Age Pension recipients
- Disability Support Pensioners
- Carer Payment and Parenting Payment recipients
- JobSeeker and Youth Allowance recipients
- Commonwealth Seniors Health Card holders
- Pensioner Concession Card holders
No separate application is necessary if you are eligible as of May 1, 2025, as payments will be processed automatically.
Age Pension Eligibility Criteria
To qualify for the Age Pension in 2025, applicants must meet the following requirements:
Age Requirement
You must be at least 67 years old by the time of your application.
Residency Requirements
You must have:
- Australian residency for at least 10 years (with a minimum of 5 continuous years).
Income and Assets Tests: How Much You Can Earn and Own
Centrelink uses the income and assets tests to determine your eligibility and pension amount. You can still qualify for a part pension if your income or assets exceed the full pension limits.
Income Test (as of May 2025)
| Status | Full Pension (Max Income) | Part Pension (Cut-Off) |
|---|---|---|
| Single | $212/fortnight | $2,510/fortnight |
| Couple | $372/fortnight (combined) | $3,836.40/fortnight |
Assets Test (as of May 2025)
Homeowners:
| Status | Full Pension (Max Assets) | Part Pension (Cut-Off) |
|---|---|---|
| Single | $314,000 | $697,000 |
| Couple | $470,000 | $1,047,500 |
Non-Homeowners:
| Status | Full Pension (Max Assets) | Part Pension (Cut-Off) |
|---|---|---|
| Single | $566,000 | $949,000 |
| Couple | $722,000 | $1,299,500 |
The Work Bonus Scheme: Earning Without Affecting Your Pension
The Work Bonus program allows eligible pensioners to earn up to $300 per fortnight without impacting their pension.
Additionally, unused Work Bonus credits can accumulate to a maximum of $11,800, which can be accessed when earnings exceed the $300 threshold.
How to Manage Your Centrelink Age Pension
Here are a few tips to stay on top of your Centrelink Age Pension:
- Log into MyGov: Check your payment schedule, update personal details, and submit income reports.
- Report changes promptly: Notify Centrelink within 14 days if you have any changes in your circumstances, such as a change of address or employment.
- Use the pension calculator: Estimate your eligibility with the Services Australia Pension Calculator.
Real-Life Example: How the Pension Increase Helps
Margaret, 70, lives alone in Brisbane with no income other than the Age Pension. She owns her home outright and has $250,000 in savings.
Based on the new asset thresholds, Margaret qualifies for the full Age Pension of $1,149 per fortnight, in addition to the $250 and $750 one-off payments for May and June.
The 2025 Centrelink Age Pension increase provides crucial support for older Australians, ensuring they can cope with rising living costs.
With improved payment rates, one-off support payments, and flexible options like the Work Bonus, the pension increase aims to improve financial security for those in retirement.
By staying informed about the eligibility criteria, payment schedules, and available benefits, seniors can make the most of the support they are entitled to.
FAQs
When will the new Age Pension rates start?
The new Age Pension rates will begin on May 1, 2025, and will continue to be paid fortnightly.
How do I apply for the Age Pension?
No application is needed if you are eligible as of May 1, 2025. Payments are processed automatically for those who meet the eligibility criteria.
What are the one-off support payments for?
In addition to regular pension increases, eligible recipients will receive $250 in May and $750 in June to help offset the rising cost of living.