Australia’s Age Pension Will Increase From April 2025: Australia’s Age Pension will increase starting April 2025, bringing welcome relief to older Australians navigating retirement in the face of rising living costs. This change means more financial support for eligible pensioners, helping them cover essentials such as food, housing, healthcare, and utilities. Whether you’re currently receiving the Age Pension or planning for retirement soon, it’s important to understand how these updates affect you, what you’re entitled to, and how to make the most of it.
Australia’s Age Pension Will Increase From April 2025
The April 2025 Age Pension increase is great news for Australian seniors. Whether you’re already receiving it or planning your retirement, understanding the rules, eligibility, and payment structure helps you take full advantage of this vital support. As always, staying informed and seeking professional advice can significantly enhance your retirement income strategy.
| Aspect | Details |
|---|---|
| New Pension Rates | – Singles: $1,149.00 per fortnight (approx. $29,874 annually) – Couples (each): $866.10 per fortnight (approx. $22,519 annually) – Couples combined: $1,732.20 per fortnight (approx. $45,037 annually) |
| Eligibility Criteria | – Age: At least 67 years old – Residency: Must have lived in Australia for 10 years (5 continuous) – Means Test: Income and assets below government thresholds |
| Payment Start Date | 20 March 2025 (indexed twice yearly) |
| Application Method | Apply via myGov, phone, or in person through Centrelink |
| Supplements Available | Pension Supplement, Energy Supplement, Rent Assistance |
| Official Resource | Services Australia – Age Pension |
Why Is the Age Pension Increasing in 2025?
The Age Pension is adjusted twice a year, in March and September, to keep up with inflation and ensure payments reflect changes in living costs. This indexation process is tied to the Consumer Price Index (CPI) or the Pensioner and Beneficiary Living Cost Index (PBLCI) — whichever is higher. If wages rise faster, the Male Total Average Weekly Earnings (MTAWE) benchmark may also be applied.
The upcoming March 2025 increase is part of this regular adjustment. It’s designed to protect older Australians from falling behind as the cost of groceries, energy, rent, and healthcare continue to climb.
What Are the New Age Pension Rates in 2025?
Effective from 20 March 2025, the updated maximum fortnightly rates will be:
For Single Pensioners:
- Base Rate: $1,051.30
- Pension Supplement: $83.60
- Energy Supplement: $14.10
- Total: $1,149.00 per fortnight (approximately $29,874 annually)
For Couple Pensioners (each):
- Base Rate: $792.50
- Pension Supplement: $63.00
- Energy Supplement: $10.60
- Total (each): $866.10 per fortnight
- Combined (couple): $1,732.20 per fortnight (approximately $45,037 annually)
Who Is Eligible for the Age Pension?
To receive the Age Pension, you must meet three key criteria: age, residency, and means testing.
1. Age Requirement
You must be at least 67 years old at the time of your application. This age requirement was gradually increased from 65 to 67 between 2017 and 2023.
2. Residency Requirement
You need to be an Australian resident for at least 10 years, including at least 5 years of continuous residency. You must also be living in Australia when you apply.
3. Means Testing (Income and Assets)
The pension is means-tested, meaning your income and assets affect how much you receive.
Income Test:
- Full Pension (Single): Income must be below $212 per fortnight
- Full Pension (Couple): Combined income must be below $372 per fortnight
- Cut-off (Part Pension): Up to $2,510 per fortnight (single), $3,836.40 (couple combined)
Assets Test (Homeowners):
- Full Pension (Single): Assets must be below $314,000
- Full Pension (Couple): Assets must be below $470,000 combined
- Higher thresholds apply for non-homeowners
Real-Life Examples
Example 1: Single Pensioner with Modest Savings
Janet is a 68-year-old retired teacher living in Sydney. She owns her apartment and has $200,000 in superannuation. She earns no other income.
Janet is well below both the income and asset thresholds, making her eligible for the full Age Pension, including supplements.
Example 2: Couple with Investments
Barry and Lisa are both 70 and live in Brisbane. They own their home and have $600,000 in combined savings and investments.
They fall into the part pension range, meaning they will receive reduced Age Pension payments based on their assets.
Is the Age Pension Taxable?
No — the Age Pension is tax-free for most people. However, if you have other taxable income such as superannuation, dividends, or rental income, it may affect your tax obligations and Medicare levy.
Tips to Maximize Your Age Pension
- Review Your Assets: Downsizing your home or restructuring your superannuation may improve eligibility.
- Use a Financial Planner: Professionals can help you legally reduce assessable income.
- Claim Early: You can apply up to 13 weeks before you turn 67.
- Update Centrelink Promptly: Keep your income and assets records current to avoid overpayments or penalties.
How to Apply for the Australia’s Age Pension Will Increase From April 2025?
- Gather Documentation: ID, birth certificate, residency evidence, bank details, super balances, and other income sources.
- Apply Online: The easiest method is via myGov linked to Centrelink.
- Submit Application: You can also apply by calling Centrelink or visiting a Services Australia office.
- Wait for Assessment: It may take several weeks. You’ll be notified of the outcome by mail or in your myGov inbox.
Additional Benefits and Supplements
In addition to the base pension, recipients may qualify for:
- Pension Supplement: A fortnightly payment to assist with daily costs.
- Energy Supplement: Designed to help cover utility bills.
- Rent Assistance: If you’re renting and meet income criteria.
- Concession Cards: Discounted prescriptions, public transport, and more via the Pensioner Concession Card.
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FAQs About Australia’s Age Pension Will Increase From April 2025
1. Will I automatically get the increase if I’m already on the pension?
Yes. No need to apply — it will be updated automatically by Services Australia.
2. Can I still work part-time and receive the pension?
Yes. The Work Bonus lets eligible pensioners earn up to $300 per fortnight without affecting their pension.
3. What if only one partner in a couple is eligible?
Your partner’s income and assets will still be included in the means test.
4. Can I live overseas and still receive the pension?
Possibly, depending on your residency history. You may receive a pro-rata rate if you live abroad permanently.
5. How often does the Age Pension increase?
Twice per year — in March and September, based on inflation or wages growth.
