Starting January 1, 2025, the Australian government will implement a significant adjustment to the Age Pension, providing a $841 annual increase and an extra $21 per fortnight to eligible pensioners. This move aims to help older Australians manage the rising cost of living driven by inflation.
The adjustment is expected to benefit millions of pensioners who rely on the Age Pension as their primary source of income. In this article, we will explain the details of the new payment structure, eligibility criteria, and other benefits available to pensioners.
Overview of the $841 Age Pension Increase for 2025
The introduction of the $841 Age Pension increase is designed to provide financial relief to older Australians, helping them keep up with the growing cost of living.
With the $21 extra per fortnight, eligible pensioners will receive an increase in their payments without needing to reapply for the pension. For more information on eligibility and to apply, visit the official Services Australia – Age Pension page.
| Aspect | Details |
|---|---|
| Annual Increase | $841 per year |
| Fortnightly Increase | $21 extra per fortnight |
| Effective Date | January 1, 2025 |
| Eligibility Age | 67 years |
| New Fortnightly Rates | – Single: $1,144.40 – Couple (combined): $1,725.20 |
| Additional Bonus | One-time $21 cost-of-living bonus |
| Next Adjustment Date | March 20, 2025 |
| Official Resource | Services Australia – Age Pension |
What is the Age Pension?
The Age Pension is a government-provided financial benefit aimed at supporting Australian citizens aged 67 and above, who meet certain residency, income, and asset criteria. This pension ensures older Australians have access to a basic standard of living in their retirement years.
The pension is reviewed and adjusted twice annually, typically in March and September, to account for inflation and changes in the cost of living.
2025 Age Pension Rates Breakdown
Effective from January 1, 2025, the updated Age Pension rates will be as follows:
For Single Recipients
- Previous Rate: $1,116.30 per fortnight
- New Rate: $1,144.40 per fortnight
- Increase: $28.10 per fortnight ($841 annually)
For Couples (Combined)
- Previous Rate: $1,682.80 per fortnight
- New Rate: $1,725.20 per fortnight
- Increase: $42.40 per fortnight ($1,102.40 annually)
These new rates include the basic pension amount, the pension supplement, and the energy supplement, ensuring recipients get the maximum entitlement possible.
Eligibility Criteria for the Age Pension in 2025
To qualify for the Age Pension, individuals must meet the following requirements:
- Age Requirement
- Applicants must be at least 67 years old as of 2025.
- Residency Status
- The applicant must be an Australian citizen or permanent resident.
- They must have lived in Australia for at least 10 years, including a continuous 5-year period.
- Income Test
- The Age Pension is subject to an income test, which limits how much you can earn before your payments are reduced. The income thresholds for 2025 are:
- Singles: Earn up to $204 per fortnight before the pension is reduced. For every $1 above this threshold, the pension is reduced by 50 cents.
- Couples (combined): Earn up to $360 per fortnight before reductions apply.
- The Age Pension is subject to an income test, which limits how much you can earn before your payments are reduced. The income thresholds for 2025 are:
- Assets Test
- The assets test limits the total value of assets (excluding the primary home). The 2025 thresholds are as follows:
- Single homeowner: Up to $301,750
- Couple homeowners (combined): Up to $451,500
- Single non-homeowner: Up to $543,750
- Couple non-homeowners (combined): Up to $693,500
- If your income or assets exceed these limits, your pension payment will be reduced or may not be available.
- The assets test limits the total value of assets (excluding the primary home). The 2025 thresholds are as follows:
How to Apply for the $841 Age Pension Increase and $21 Bonus for 2025
Eligible individuals can apply for the Age Pension in the following ways:
- Online Application
- Visit myGov and link your Centrelink account to apply online.
- Complete the Age Pension application form on the site.
- By Phone
- Call 13 23 00 for phone assistance in applying.
- In-Person Application
- Visit your nearest Services Australia service center with the required documents.
Documents Required for Application
- Proof of identity (e.g., passport, driver’s license)
- Income and assets statements
- Residential details
Additional Benefits for Pensioners in 2025
Besides the Age Pension increase, eligible pensioners may also qualify for several other government benefits, including:
- Energy Supplement
- Helps pensioners manage rising energy costs.
- Commonwealth Seniors Health Card
- Offers discounts on prescriptions, medical services, and transport.
- Rent Assistance
- Available for pensioners who rent privately.
- Discounted Public Transport
- Pensioners are eligible for reduced fares on public transport.
- One-Time $21 Cost-of-Living Bonus
- A special one-time $21 bonus will be paid in the first pension payment of 2025.
Full Payment Schedule for 2025
The Age Pension is paid fortnightly. Below is the payment schedule for the first quarter of 2025:
| Payment Date | Single Fortnightly Amount | Couple Combined Fortnightly Amount |
|---|---|---|
| January 3, 2025 | $1,144.40 | $1,725.20 |
| January 17, 2025 | $1,144.40 | $1,725.20 |
| January 31, 2025 | $1,144.40 | $1,725.20 |
| February 14, 2025 | $1,144.40 | $1,725.20 |
| February 28, 2025 | $1,144.40 | $1,725.20 |
All payments will be automatically deposited into the recipient’s nominated bank account.
The Australian government’s $841 Age Pension increase and the additional $21 per fortnight will significantly assist older Australians in managing rising living costs. With eligibility based on age, residency, income, and assets, pensioners who meet these criteria will benefit from the increased payments.
Moreover, additional support through energy supplements, rent assistance, and health care discounts further enhance the benefits for eligible recipients.
FAQs
What is the total increase in Age Pension payments for 2025?
The total increase is $841 annually, with an additional $21 per fortnight.
When will the Age Pension increase take effect?
The increase will be effective starting January 1, 2025.
How often are Age Pension payments made?
Age Pension payments are made fortnightly, typically every two weeks.
Do I need to reapply for the Age Pension increase?
No, the increase will be applied automatically to your existing Age Pension payments.
Anthony ALBANESE
where is people on a DSP increase. The cost of living we want a bigger increase.bYou know you politicians don’t live in the REAL WORLD like the normal do.
$2.90 a week a week is pitiful. You can’t even buy a loaf at the Supermarket
WHAT ARE INSULT
THIS DOES NOT MEET THE COST PF LIVING STANDARDS.
Whats going on with the supplement with the boost of the dsp