Starting July 1, 2025, the Australian Government will implement adjustments to the Age Pension rates, reflecting changes in the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI).
These changes aim to ensure that pension payments keep pace with the cost of living.
Updated Age Pension Rates
The following table outlines the maximum fortnightly Age Pension payments effective from July 1, 2025:
| Recipient Category | Previous Rate (per fortnight) | New Rate (per fortnight) |
|---|---|---|
| Single | $1,116.30 | $1,149.00 |
| Couple (each) | $841.40 | $866.10 |
| Couple (combined) | $1,682.80 | $1,732.20 |
| Couple separated due to illness | $1,116.30 | $1,149.00 |
Note: These rates include the basic pension, Pension Supplement, and Energy Supplement.
Adjustments to Income and Assets Tests
To determine eligibility and payment amounts, the income and assets tests have been updated:
Income Test Thresholds
| Recipient Category | Full Pension Threshold (per fortnight) | Part Pension Cut-off (per fortnight) |
|---|---|---|
| Single | $212.00 | $2,510.00 |
| Couple (combined) | $372.00 | $3,836.40 |
Assets Test Thresholds
| Recipient Category | Homeowner (Full Pension) | Non-homeowner (Full Pension) | Homeowner (Part Pension Cut-off) | Non-homeowner (Part Pension Cut-off) |
|---|---|---|---|---|
| Single | $314,000 | $566,000 | $697,000 | $949,000 |
| Couple (combined) | $470,000 | $722,000 | $1,047,500 | $1,299,500 |
Note: These thresholds are effective from March 20, 2025, and are subject to change.
Deeming Rates and Their Impact
Deeming rates are used to estimate income from financial assets. As of now, the rates are:
- 0.25% on the first $62,600 (single) or $103,800 (couple combined)
- 2.25% on amounts above these thresholds
These rates are scheduled to be reviewed and may change after June 30, 2025. Changes in deeming rates can affect pension entitlements, especially for those with significant financial assets.
Actions for Pensioners
To ensure you receive the correct payment:
- Review Your Financial Information: Update any changes in income or assets with Centrelink.
- Link Your Bank Account: Ensure your bank details are current to receive payments promptly.
- Seek Financial Advice: Consult with a financial advisor to understand how changes may affect your entitlements.
The upcoming changes to the Age Pension rates from July 1, 2025, reflect the government’s commitment to supporting retirees amidst rising living costs.
By understanding these adjustments and staying informed, pensioners can better manage their finances and ensure they receive their rightful entitlements.
FAQs
When will the new Age Pension rates take effect?
The updated rates will be effective from July 1, 2025.
How often are Age Pension rates reviewed?
Rates are reviewed twice a year, in March and September, to align with inflation and wage changes.
What if my circumstances change?
You should report any changes in your income, assets, or personal circumstances to Centrelink as soon as possible to ensure accurate payments.