Centrelink Pension Increase 2025: New Payment Thresholds and Eligibility Updates

The Centrelink pension changes implemented on July 1, 2025, have introduced updated thresholds for income and assets, making it easier for Australians to qualify for age pensions or receive higher payments. To qualify, individuals must:

• Be 67 years old or older.
• Meet the updated income and asset test thresholds.

These changes reflect inflation adjustments, enabling pensioners to retain more income and assets without reducing their pension payments.

How Have the Income Test Thresholds Changed?

The income test thresholds determine how much pensioners can earn before their payments are reduced. The updates include:

Single Pensioners:

• Income-Free Area: Increased from $204 to $212 per fortnight.
• Reduction Rate: Pension reduces by 50 cents for every dollar earned over this threshold.
• Maximum Income Limit: Increased to $2,444.60 per fortnight (up from $2,436.60).

Couple Pensioners:

• Income-Free Area: Increased from $360 to $372 per fortnight.
• Reduction Rate: Pension reduces by 50 cents for every dollar earned over this threshold.
• Maximum Income Limit: Increased to $3,737.60 per fortnight (up from $3,725.60).

What Are the New Asset Test Limits?

The asset test thresholds determine the maximum value of assets pensioners can hold without impacting their pension payments. Here’s a breakdown:

For Homeowners:

• Single Pensioners: Asset limit for full pension increased to $314,000 (up from $301,750).
• Couple Pensioners: Combined asset limit for full pension increased to $470,000 (up from $451,500).

For Non-Homeowners:

• Single Pensioners: Asset limit for full pension increased to $566,000 (up from $543,750).
• Couple Pensioners: Combined asset limit for full pension increased to $722,000 (up from $693,500).

Part Pension Limits:

• Single Homeowners: Limit for part pension increased to $686,250 (up from $674,000).
• Couple Non-Homeowners: Combined limit for part pension increased to $1,283,000 (up from $1,254,500).

What Are the Updates on Deeming Rates and Thresholds?

Deeming rates, used to estimate income from financial assets, remain frozen until June 30, 2025. However, the thresholds for deeming have been adjusted:

Single Pensioners:

• The first $62,600 of financial assets is deemed to earn 0.25% (up from $60,400).

Couple Pensioners:

• The first $103,800 of combined financial assets is deemed to earn 0.25% (up from $100,200).

Amounts exceeding these thresholds are deemed to earn 2.25%.

What Are the Additional Adjustments for 2025?

Several other adjustments have been made to benefit pensioners:

• Retirement Villages and Granny Flats: Extra allowable amount for non-homeowners increased to $252,000 (up from $242,000).
• Special Disability Trusts: Concessional asset value limit raised to $813,250 (up from $781,250).
• Exempt Funeral Investments: Threshold increased to $15,500 (up from $15,000).

How Can You Review Your Pension Eligibility?

Pensioners are encouraged to reassess their financial situations to determine how these changes may impact their payments. For personalized advice:

• Contact Centrelink through official channels.
• Consult a financial advisor to maximize your benefits.

FAQs

How Can I Qualify for the Full Centrelink Pension?

You must meet the updated income and asset thresholds as of July 1, 2025. For homeowners, the asset limit is $314,000 for singles and $470,000 for couples.

How Have Income Limits Changed for Single Pensioners?

Single pensioners can now earn up to $212 per fortnight without reducing their pension payments.

What Are the New Asset Limits for Non-Homeowners?

Non-homeowner singles can have up to $566,000 in assets for the full pension, while couples can have up to $722,000.

What Are Deeming Rates, and Why Are They Important?

Deeming rates estimate income from financial assets. The lower rate applies to the first $62,600 for singles and $103,800 for couples.

How Do These Changes Benefit Pensioners?

These updates allow pensioners to hold more income and assets, increasing eligibility and payment amounts.

Are There Changes to Part Pension Thresholds?

Yes, thresholds for part pensions have increased. For example, the limit for single homeowners is now $686,250.

What Should I Do to Stay Informed About Pension Updates?

Regularly check official Centrelink announcements and consult a financial advisor for updates.

How Can I Report Issues With My Pension Payments?

If you face discrepancies, contact Centrelink through MyGov or their customer service line for assistance.

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