The Australian government has announced an increase in the Age Pension rates effective from 20 March 2025.
This adjustment aims to assist retirees in managing the rising cost of living. The pension rates are indexed biannually in March and September to reflect changes in the Consumer Price Index (CPI) and other economic indicators.
Updated Age Pension Rates (Effective 20 March 2025)
| Recipient Category | Fortnightly Payment | Annual Equivalent |
|---|---|---|
| Single | $1,149.00 | $29,874.00 |
| Couple (each) | $866.10 | $22,519.00 |
| Couple (combined) | $1,732.20 | $45,037.00 |
| Couple (separated due to illness) | $1,149.00 | $29,874.00 |
Note: These amounts include the base rate, pension supplement, and energy supplement.
Eligibility Criteria for the Age Pension
To qualify for the Age Pension in Australia, applicants must meet specific criteria:
- Age Requirement: Must be at least 67 years old.
- Residency: Must have been an Australian resident for at least 10 years, with at least 5 consecutive years.
- Income Test:
- Single: Income must be below $212 per fortnight for full pension; reduced payments up to $2,510 per fortnight.
- Couple (combined): Income must be below $372 per fortnight for full pension; reduced payments up to $3,836.40 per fortnight.
- Note: The Work Bonus allows eligible pensioners to earn up to $300 per fortnight without affecting their pension.
- Assets Test:
- Single Homeowner: Assets must be below $697,000 for part pension eligibility.
- Single Non-Homeowner: Assets must be below $949,000.
- Couple Homeowner (combined): Assets must be below $1,047,500.
- Couple Non-Homeowner (combined): Assets must be below $1,299,500.
Upcoming Payment Dates
The Age Pension is paid fortnightly. Key upcoming payment dates include:
- 29 May 2025: Payment issued.
- 4 June 2025: Direct deposit payments received.
- 18 June 2025: Cheque payments received.
Note: Payment dates may vary based on individual circumstances and payment methods.
Impact of the Increase
The Age Pension increase provides additional financial support to retirees, helping them cope with inflation and rising living costs. This adjustment reflects the government’s commitment to ensuring the well-being of older Australians.
The 2025 Age Pension increase is a significant step in supporting Australia’s aging population. By adjusting payments to match economic conditions, the government aims to provide retirees with the financial stability they need.
Eligible individuals should review their circumstances and apply through the appropriate channels to benefit from the updated rates.
FAQs
How often are Age Pension rates reviewed?
Age Pension rates are reviewed twice a year, in March and September, to align with inflation and wage changes.
Can I still work and receive the Age Pension?
Yes, under the Work Bonus scheme, you can earn up to $300 per fortnight without affecting your pension.
How do I apply for the Age Pension?
You can apply online through your MyGov account linked to Centrelink or visit a Services Australia service centre.