March 2025 Age Pension changes

The Age Pension is indexed twice yearly with effect from 20 March and 20 September.

The 20 March 2025 indexation increased the maximum age pension rates as follows:

• Maximum Single fortnightly rate is now $1,149.00 (previously $1,144.40).

• Maximum Couple fortnightly rate is now $1,732.20 (previously $1,725.20) (both entitled to the age pension).

As a result of the increase in the maximum age pension rates, the income limit (“the income test disqualification limit”) at which the age pension is reduced to a nil entitlement has been increased to:

• for single age pensioners - $2,510.80 (previously $2,500.80).

• for couple age pensioners - $3,836.40 (previously $3,822.40) (both entitled to the age pension).

Also, as a result of the increase in the maximum age pension rates, the asset limit (“the assets test disqualification limit") at which the age pension is reduced to a nil entitlement has been increased to:

• for single age pensioners (homeowner) - $697,000 (previously $695,500)

• for single age pensioners (non-homeowners) - $949,000 (previously $947,500)

• for couple age pensions (homeowners) - $1,047,500 (previously $1,045,000)

• for couple age pensioners (non-homeowners) - $1,299,500 (previously $1,297,500)

(Different and lower disqualification limits apply for age pensioners who are non-residents.)

The increase in the age pension rates will apply automatically using the previously recorded income and assets data held by Centrelink. Generally, the increase to the age pension applies in respect of the fortnightly instalment period which commences with or which includes 20 March.

If the fortnightly instalment period commences with 20 March, then the age pension payment for that instalment period will be based upon the increased maximum age pension rate.

If the fortnightly instalment period includes the 20 March, then the age pension payment for that instalment period will be based upon a combination of the previous maximum age pension rate and the 20 March maximum age pension rate (based upon the number of days of the instalment period which occur before 21 March and the number which occur on or after 20 March).

For individuals who are not currently entitled to the age pension (solely because of the application of the means test) or who currently have a Seniors Health Card, they should consider applying for the age pension. Given the increase in the age pension disqualification limits, it is possible that they will now qualify for a part pension. If so, they will now be entitled to both a part (possibly small) age pension but, more significantly, their health card will not be replaced by the more generous Pensioner Health Card.