From January 2025, the Australian Government has introduced new rules for the Centrelink Age Pension, directly impacting millions of retirees. These updates focus on increasing pension rates, easing income and asset limits, and providing extra support to help seniors manage the rising cost of living.
Key Updates to the Age Pension in 2025
The 2025 changes bring higher payments and better flexibility for pensioners.
- Increase in base rates: Fortnightly pension payments have risen in line with inflation.
- Supplements included: Energy and pharmaceutical supplements remain available for eligible seniors.
- Better cost-of-living support: The increase is aimed at covering everyday expenses like groceries, utilities, and healthcare.
Income and Asset Test Changes
Higher Income-Free Area
Pensioners can now earn more from part-time work, investments, or superannuation before their pension starts to reduce.
Updated Asset Limits
The government has raised the asset thresholds, meaning more Australians will qualify for part or full pensions in 2025.
New Deeming Rates for 2025
Deeming rates (the rates used to calculate income from financial assets) have been adjusted downward. This means:
- Less of your savings are “deemed” to earn income.
- Many retirees will see a higher pension payment as a result.
Extra Benefits and Concessions
- Energy supplement: Ongoing support for utility bills.
- Pharmaceutical benefits: Continued discounts on medications.
- Pensioner Concession Card: Access to cheaper healthcare, transport, and services.
Checking Your Eligibility
Retirees can review their updated entitlements in two ways:
- Online: Through the Centrelink/Services Australia portal.
- In person: By visiting a Services Australia office.
It is important to keep income and asset details updated to ensure correct payment amounts.
What These Changes Mean for Retirees
The 2025 pension reforms aim to:
- Provide higher fortnightly payments.
- Allow retirees to work or invest without losing benefits too quickly.
- Offer better financial stability during rising living costs.
For most seniors, these adjustments will mean a small but noticeable boost in income.
FAQs
Q1: How much has the Age Pension increased in 2025?
The pension base rate and supplements have risen slightly to keep up with inflation.
Q2: Can I earn more from part-time work without losing my pension?
Yes. The income-free area has been increased, allowing pensioners to earn more before reductions apply.
Q3: What are deeming rates, and why do they matter?
Deeming rates calculate income from savings and investments. Lower deeming rates in 2025 mean higher pension payments for many retirees.
Q4: Do I still get the Energy Supplement?
Yes. Eligible pensioners will continue receiving the Energy Supplement to help with rising utility bills.
Q5: How do I check my new pension amount?
You can log into the Centrelink portal or visit a Services Australia office to review updated entitlements.
Conclusion
The Centrelink Pension Changes 2025 give retirees much-needed relief against rising costs. With higher payments, relaxed income rules, and lower deeming rates, most pensioners will see an improvement in their financial security. To make the most of these updates, seniors should regularly review their Centrelink details and stay informed about further adjustments.