Starting June 1, 2025, Australian seniors who receive the Centrelink Age Pension will enjoy a welcome increase in their fortnightly payments.
This update is part of the government’s scheduled indexation to ensure the pension keeps up with inflation and wage growth. As living costs continue to climb, this pay rise aims to ease the financial strain on retirees.
Updated Centrelink Age Pension Rates From June 1, 2025
The Age Pension payment is made up of three components: the base rate, the pension supplement, and the energy supplement. The latest update affects all three, resulting in a modest but meaningful increase in overall payments.
New Pension Rates:
| Recipient Type | Old Rate (per fortnight) | New Rate (per fortnight) | Total Increase |
|---|---|---|---|
| Single | $1,144.40 | $1,149.00 | $4.60 |
| Couple (each) | $862.60 | $866.10 | $3.50 |
| Couple (combined) | $1,725.20 | $1,732.20 | $7.00 |
These changes will be automatically reflected in centrelink pension payments starting the first full pay cycle after June 1, 2025.
Eligibility Criteria for Age Pension
To be eligible for the Centrelink Age Pension, individuals must meet a range of criteria related to age, residency, and financial situation.
Eligibility Requirements:
- Age: Must be at least 67 years old as of June 2025.
- Residency: Must be an Australian resident and have lived in the country for at least 10 years, with a minimum of 5 years of continuous residency.
- Income & Assets: Must pass the income and assets tests to qualify for a full or partial pension.
Failure to meet these criteria may result in reduced benefits or ineligibility.
Income and Assets Test Thresholds (Effective June 2025)
Centrelink uses income and assets tests to determine how much pension a recipient can receive.
Income Test Thresholds:
| Household Type | Max for Full Pension (per fortnight) | Cut-off for Part Pension |
|---|---|---|
| Single | $212 | $2,510 |
| Couple (combined) | $372 | $3,836.40 |
Assets Test Thresholds:
| Household Type | Homeowner | Non-Homeowner |
|---|---|---|
| Single | $314,000 | $566,000 |
| Couple (combined) | $470,000 | $722,000 |
If a pensioner’s income or assets exceed these thresholds, their fortnightly payment may be reduced or ceased altogether.
Deeming Rates
The government uses deeming rules to estimate the income you earn from financial investments.
Current Deeming Rates (Effective Until at Least June 30, 2025):
- Singles:
- 0.25% on the first $62,600
- 2.25% on amounts above $62,600
- Couples:
- 0.25% on the first $103,800 (combined)
- 2.25% on amounts above $103,800
These rates help determine whether pensioners exceed the income threshold.
Additional Benefits for Pensioners
Beyond the basic Centrelink Age Pension, eligible seniors may also receive:
- Energy Supplement: To offset rising utility costs.
- Pensioner Concession Card: Discounts on prescription medicines, healthcare, and transport.
- Rent Assistance: Available for renters meeting specific criteria.
These extra supports are aimed at improving the quality of life for low-income seniors.
The Centrelink Age Pension increase effective June 1, 2025, provides meaningful relief for seniors coping with rising living expenses. Even though the increase may appear modest, it reflects the government’s continued effort to support elderly Australians through fair indexation.
Understanding how these changes affect your payments—and ensuring your eligibility details are up-to-date—can help you make the most of this financial boost.
FAQs
Will I need to apply to receive the pension increase in June 2025?
No. The updated rates will be applied automatically if you’re already receiving the Age Pension.
How often does the Age Pension increase?
The Age Pension is reviewed twice a year, in March and September, in line with inflation and wage growth.
What if my income or assets change after June 1?
You must report changes in your financial situation to Centrelink, as it may affect your payment amount.