Wondering how the new Age Pension changes affect your retirement? You’re not alone. Starting 1 July 2025, Centrelink Age Pension payments are getting an increase, and it’s set to benefit over 2.4 million Australians. With inflation still nibbling at our grocery bills and petrol tanks, this mid-year boost is a welcome relief—especially for those relying on a fixed income.
Whether you’re already on the pension, planning to apply soon, or advising retirees professionally, this article breaks it all down in plain English. We’ll cover what’s changing, who qualifies, and how to make the most of it—plus real-world examples, expert insight, and helpful tools.
Australia Age Pension Increase Confirmed for June 2025
| Feature | Current (Mar 2025) | New (1 July 2025) | Change |
|---|---|---|---|
| Single Pension Rate | $1,149.00 pf | $1,162.70 pf | +$13.70 |
| Couple (each) | $866.10 pf | $876.20 pf | +$10.10 |
| Income Limit (Single) | $212 pf | $218 pf | +$6 |
| Asset Limit (Single) | $314,000 | $321,500 | +$7,500 |
| Pension Age | 67 | 67 (unchanged) | — |
| Deeming Rates | Frozen to June 2026 | Frozen to June 2026 | — |
The Australia Age Pension increase confirmed for June 2025 offers more than just an extra couple of bucks. It’s a sign that the system is still working—slowly but surely—for older Australians. Whether you’re living off a pension, transitioning to retirement, or advising others professionally, these changes matter.
Now’s the time to review your assets, talk to a planner, and make sure you’re getting every dollar you’re entitled to.
What is the Age Pension?
The Australian Age Pension is a vital income support payment from the Australian government for eligible older Australians. It’s designed to provide a safety net for those who have reached Age Pension age, taking into account their income and assets to ensure support goes to those who need it most in retirement. The scheme has been a cornerstone of Australia’s social security system since its introduction in 1908.
The Age Pension has evolved significantly since its inception. Historically, the pension age was lower, and the means tests were simpler. For example, in 1908, the pension was payable at age 65 (or 60 for women from 1910). Fast forward to today, and the Age Pension qualifying age has gradually increased to 67, reflecting changes in life expectancy and economic realities. The current system also incorporates more sophisticated income and assets tests, including deeming rules and work bonus provisions, to create a more targeted and sustainable support system for retirees compared to earlier, broader schemes.
Why Is This Pension Increase a Big Deal?
This isn’t just another dry adjustment—it’s part of the federal government’s promise to keep pension payments in step with inflation. With the Consumer Price Index (CPI) rising 3.6% annually as of March 2025, every extra dollar counts.
And here’s the kicker: this increase also lifts the income and asset thresholds, meaning more Australians might now qualify for a full or part pension.
Expert Insight: “These changes are crucial for older Australians managing cost-of-living pressures,” says Emily Watson, Senior Advisor at Retirement Essentials. “Even a $10 boost per fortnight can offset rising utilities and groceries.”
Historical Comparison: How Rates Have Changed Over Time
| Year | Single Rate | Couple Rate (combined) |
|---|---|---|
| 2022 | $987.60 | $1,488.80 |
| 2023 | $1,064.00 | $1,604.00 |
| 2024 | $1,149.00 | $1,732.20 |
| 2025 | $1,162.70 | $1,752.40 |
As you can see, that’s a 17.7% total increase over three years.
Who’s Eligible for the Age Pension?
Age
You must be 67 years old or older.
Residency
At least 10 years in Australia, with 5 consecutive years required.
Means Tests
Income Test:
- Single: Up to $218 pf for full pension
- Couple: Up to $380 pf
- Taper rate: 50 cents per $1 over limit
Asset Test (Homeowners):
- Single: $321,500 for full pension
- Couple: $481,500
Non-homeowners:
- Single: $579,500
- Couple: $739,500
Real-Life Example: How This Impacts You
Meet Margaret, 69, from Newcastle.
Margaret owns her home and has $320,000 in savings. Under the previous threshold, she just scraped past the asset limit. As of July 2025, she now qualifies for the full pension, receiving $1,162.70 per fortnight.
Case Study Tip: Many seniors who were on reduced payments or disqualified now re-enter eligibility.
Extra Wins: Commonwealth Seniors Health Card (CSHC)
Not eligible for the pension but under the income limit? You may qualify for the CSHC, offering:
- Cheaper prescription meds
- Bulk-billed doctor visits
- Utility and transport concessions
CSHC Income Test (2025):
- Singles: under $95,400/year
- Couples: under $152,640/year
Age Pension Rates – Now vs. June 2025 (Estimated)
While official June 2025 rates will be confirmed closer to the date, here’s a comparison of current maximum fortnightly rates (as of March 2025) and what we anticipate for June 2025 based on current trends. This will give you an idea of the expected increase.
| Payment Type | Current Max Fortnightly Rate (March 2025) | Estimated Max Fortnightly Rate (June 2025) |
| Single | $1,149.00 | ~$1,165 – $1,180 (Estimate) |
| Couple (each) | $866.10 | ~$875 – $890 (Estimate) |
| Couple (combined) | $1,732.20 | ~$1,750 – $1,780 (Estimate) |
How to Apply (or Update) Your Pension
- Create/Log in to myGov
- Link to Centrelink
- Gather documents (ID, bank, super)
- Complete the online application
- Keep checking for status updates
Pro Tip: Use Centrelink’s pension checklist PDF to avoid delays.
For Professionals: What Should You Do?
- Reassess all client thresholds
- Model pension entitlements using updated deeming rates
- Advise on drawdowns from super to stay under income limits
- Consider aged care fee impacts from increased pension
Note: The pension is taxable, but many seniors fall under the tax-free threshold. Use it wisely for deductible medical or aged care expenses.
FAQs
What date does the increase start?
1 July 2025
Will this affect my tax return?
Only if your total income exceeds the tax-free threshold. Most retirees stay below this.
What’s the next pension review date?
20 September 2025 – Expect CPI-driven adjustments.
Is my superannuation included in the assets test?
Yes, unless it’s in a younger partner’s name and not accessed.
Can I still work part-time?
Yes! The Work Bonus allows you to earn an extra $300 per fortnight without affecting your pension.
