Australia’s Age Pension is undergoing significant reforms in June 2025, set to affect over 2 million senior citizens across the country. Managed by Centrelink under Services Australia, the Age Pension is a crucial financial support system for retirees and low-income elderly citizens. The latest updates include increased payment rates, expanded eligibility, and adjusted income and asset thresholds—all aiming to provide better security amid rising living costs.
This article outlines all the key Age Pension changes effective from April–July 2025, who will benefit, and what actions pensioners should take.
What Is the Age Pension?
The Age Pension is a fortnightly government payment made to Australians who have reached retirement age and meet income, asset, and residency criteria. As of April 2025, over 2.6 million Australians rely on the pension to cover basic living expenses like food, rent, energy, and healthcare.
Key Age Pension Reforms (June 2025 Updates)
1. Increased Fortnightly Pension Rates
Effective from 20 April 2025, Age Pension payments increased to reflect higher inflation and cost-of-living pressures.
| Recipient Type | Previous Rate | New Rate (From April 2025) |
|---|---|---|
| Single | $1,096.70 | $1,116.30 |
| Couple (combined) | $1,653.40 | $1,682.80 |
These rates include the Pension Supplement and Energy Supplement.
2. Updated Income Test Thresholds
Centrelink uses an income test to determine how much pension a recipient qualifies for. In 2025, thresholds have slightly increased:
- Single pensioners can now earn up to $204/fortnight (up from $190) before their pension is reduced.
- Couples can earn $360/fortnight combined (up from $336).
Payments reduce by 50 cents for every dollar earned above the threshold.
3. Deeming Rate Freeze Until June 2025
Centrelink assumes income from financial assets through deeming rates. The good news? These rates remain frozen until 30 June 2025, benefiting pensioners with savings or superannuation:
- Lower rate: 0.25%
- Upper rate: 2.25%
This freeze helps seniors qualify for a higher pension by lowering their deemed income.
4. Asset Test Threshold Adjustments
New asset thresholds will apply from 1 July 2025, making more individuals eligible for a full or part pension.
| Recipient Type | Homeowner | Non-Homeowner |
|---|---|---|
| Single | $301,750 | Higher |
| Couple (combined) | $451,500 | Higher |
The asset test is crucial in determining eligibility for full or part pensions.
5. Expanded Commonwealth Seniors Health Card Access
If you don’t qualify for the Age Pension due to higher income or assets, you might now be eligible for the Commonwealth Seniors Health Card (CSHC) thanks to raised thresholds:
- Singles: Income under $95,400
- Couples: Combined income under $152,640
The CSHC provides:
- Discounted prescriptions
- Bulk-billed doctor visits
- Utility and transport discounts
6. Work Bonus Scheme Continues
The Work Bonus helps seniors stay employed part-time without sacrificing pension payments.
- Pensioners can earn $300/fortnight from work without reducing their pension.
- Unused Work Bonus accumulates in a balance of up to $7,800 annually.
Why These Age Pension Reforms Matter
These reforms are not just policy changes—they are lifelines. Here’s what they achieve:
- Help seniors maintain standard of living amid rising costs
- Allow part-time work without harsh penalties
- Expand benefits to more self-funded retirees
- Make Centrelink’s eligibility tests more flexible
The government aims to balance support with fiscal responsibility, ensuring older Australians can retire with dignity and security.
What You Should Do Now
To make sure you’re ready for these changes, follow this quick checklist:
- Log in to myGov and update income and assets
- Use Centrelink’s pension calculator for estimates
- Check eligibility for the Seniors Health Card
- Consult Centrelink’s Financial Information Service for guidance
The Age Pension reforms set for mid-2025 represent a major shift in Australia’s retirement landscape. With increased payment rates, updated thresholds, and broader access to benefits, over two million older Australians stand to gain. These changes offer financial relief and flexibility, helping seniors manage rising costs with dignity.
FAQs
Will everyone over Age Pension age automatically receive more money?
No. The increase depends on your income and assets. However, many will benefit due to raised thresholds and rate adjustments.
Does the Work Bonus apply to self-employment income?
Yes, but only to employment income (wages or business income from active work), not to investment returns.
Can I still apply for the Commonwealth Seniors Health Card if I don’t get the Age Pension?
Yes. Many self-funded retirees now qualify thanks to the increased income limits introduced in 2025.