Centrelink’s updated pension payments for 2025 bring a much-needed financial uplift for millions of Australians, including Age Pension, Disability Support Pension (DSP), and Carer Payment recipients. With the cost of living continuing to rise, these changes offer welcome support to those who need it most.
This complete guide outlines the new payment rates, eligibility updates, one-off bonuses, and practical steps you can take to ensure you receive your full entitlements.
Overview: What’s Changing in 2025?
Starting July 1, 2025, Centrelink will implement new pension rates and expanded thresholds for income and asset tests. These changes aim to help eligible Australians better manage day-to-day expenses like food, utilities, rent, and healthcare.
| Aspect | Details |
|---|---|
| Effective Date | July 1, 2025 |
| New Fortnightly Rates | Single: $1,142.90; Couple (each): $859.70 |
| Asset Thresholds | Single Homeowner: $314,000; Non-Homeowner: $566,000 |
| Income Free Area | Single: $212; Couple: $372 per fortnight |
| One-Off Bonuses | Up to $5,048 in 2025 |
| Applies To | Age Pension, DSP, Carer Payment recipients |
| Official Resource | Services Australia |
Updated Fortnightly Pension Payments (Effective July 2025)
All rates include the base rate, Pension Supplement, and Energy Supplement.
| Recipient Type | Previous Rate | New Rate | Increase |
|---|---|---|---|
| Single | $1,116.30 | $1,142.90 | +$26.60 |
| Couple (each) | $841.40 | $859.70 | +$18.30 |
| Couple (combined) | $1,682.80 | $1,719.40 | +$36.60 |
Eligibility: Who Qualifies for the Increased Payments?
Age Pension
- Must be 67 years or older.
- Must have lived in Australia for at least 10 years.
- Must meet income and asset tests.
Disability Support Pension (DSP)
- Must have a permanent disability (physical, mental, or intellectual).
- Must provide supporting medical evidence.
- Must meet residency rules.
Carer Payment
- Must provide daily care to someone with a severe illness, disability, or frailty.
- Must meet income and asset test requirements.
- Must satisfy residency criteria.
Income and Asset Test Thresholds (Effective July 2025)
These tests determine how much pension you can receive. If you exceed the thresholds, your payment may be reduced or stopped.
Asset Test Thresholds
| Situation | Homeowner | Non-Homeowner |
|---|---|---|
| Single | $314,000 | $566,000 |
| Couple (combined) | $470,000 | $722,000 |
Income Free Areas
| Situation | Fortnightly Income Limit |
|---|---|
| Single | $212 |
| Couple | $372 |
Note: If you earn above these limits, your pension is reduced by 50 cents for every dollar over the threshold.
Special Bonus Payments in 2025
In addition to the standard increases, several one-off payments will be delivered in 2025 to help offset rising expenses:
| Bonus Payment | Amount | Payment Date |
|---|---|---|
| Economic Support Payment | $400 | April 2025 |
| Cost-of-Living Supplement | $250 | May 2025 |
| Cost-of-Living Boost (ongoing) | $1,144 | Started March 2025 |
| Total Annual Extra Support | Up to $5,048 | Throughout 2025 |
Real-Life Example: How Much More Will You Get?
Let’s look at Mary, a 70-year-old single pensioner in Melbourne.
- Before July 2025: Mary received $1,116.30 per fortnight.
- After July 2025: Her payment rises to $1,142.90 — an annual increase of $692.
- She also qualifies for:
- $400 Economic Support Payment
- $250 Cost-of-Living Supplement
Total Additional Support in 2025: $1,342+
This extra amount helps Mary manage bills, groceries, and medical expenses more comfortably.
How to Maximize Your Centrelink Benefits
Take these steps to get the most out of your entitlements:
- Review your income and assets regularly.
- Report any changes via myGov to avoid overpayments.
- Check for other payments you may be eligible for (e.g., Rent Assistance, Carer Allowance).
- Use Centrelink’s Payment and Service Finder tool to explore options.
- Set calendar reminders for regular income updates and compliance checks.
Common Mistakes That Can Cost You
Avoid these common errors:
- Failing to update contact or banking details
- Not reporting changes in income or assets
- Ignoring letters or deadlines from Centrelink
- Assuming you’re ineligible without checking again
Being proactive keeps your payments accurate and uninterrupted.
FAQs
When do the new Centrelink rates start in 2025?
The new rates come into effect on July 1, 2025.
How much is the new Age Pension for singles in 2025?
Singles will receive $1,142.90 per fortnight, up from $1,116.30.
Who qualifies for the $400 Economic Support Payment?
Most Age Pension, DSP, and Carer Payment recipients are eligible for the $400 payment in April 2025.
What happens if my income exceeds the free area?
Your pension reduces by 50 cents per dollar over the limit.
Where can I check my eligibility and entitlements?
Use the Payment and Service Finder tool on the Services Australia website.