The Australian government has confirmed a series of major Age Pension changes for 2025, impacting eligibility, income and asset thresholds, and payment rates. These updates are part of the government’s commitment to keep pensions in line with inflation and cost-of-living pressures.
Key Pension Changes in 2025
- Income Test Thresholds Increased
Pensioners can now earn more before their payments are reduced. - Asset Test Cut-offs Adjusted
Seniors with higher asset levels may still qualify for part pensions. - Payment Rates Updated
Fortnightly pension rates for singles and couples will rise in September 2025. - Work Bonus Expanded
Pensioners who continue working will benefit from an increased work bonus, allowing them to earn more without reducing their pension.
Updated Pension Rates 2025
| Category | 2024 Rate (Fortnightly) | 2025 New Rate (Sept) |
|---|---|---|
| Single (full pension) | $1,064.00 | $1,127.00 |
| Couple (combined, full) | $1,604.00 | $1,699.00 |
| Part-pension threshold (assets, single homeowner) | $634,750 | $704,500 |
| Part-pension threshold (assets, couple homeowners) | $954,000 | $1,059,000 |
(Exact payment rates may vary slightly by indexation and living cost adjustments.)
Why the Changes?
The government explained that these changes are designed to:
- Help seniors keep pace with rising inflation.
- Encourage older Australians to stay in the workforce with the Work Bonus.
- Expand eligibility so more part-pensioners receive support.
Frequently Asked Questions (FAQ)
1. When will the changes take effect?
From September 2025, following the regular pension indexation cycle.
2. Do I need to apply for these changes?
No. Centrelink will automatically adjust your pension if you are eligible.
3. Will part-pensioners benefit?
Yes. Higher income and asset thresholds mean more Australians can qualify for a part pension.
4. What is the Work Bonus?
The Work Bonus allows pensioners to earn income from work without it affecting their pension up to a higher limit.
5. Will this affect Carer Payment or DSP?
Yes. The same adjustments flow through to Carer Payment and Disability Support Pension recipients.
Key Takeaway
The Age Pension changes for 2025 increase payment rates, raise thresholds, and expand the Work Bonus. These updates mean more Australians will qualify for part pensions and full pensioners will see higher fortnightly payments from September 2025.