Australia’s senior citizens are receiving a much-needed financial uplift as Centrelink increases Age Pension payments in March 2025. With inflation and rising household expenses putting pressure on retirees, this change comes as a welcome relief.
The updated pension rates mean that single pensioners can now receive up to $3,209 per month, while couples are seeing combined monthly payments exceeding $3,460.
What’s New in the March 2025 Age Pension Update?
The Age Pension is reviewed twice a year—March and September—to ensure payments keep pace with the cost of living. In March 2025, pensioners received an increase of up to $4.60 per fortnight (or $119.60 per year) for singles.
Here’s a breakdown of the new fortnightly and monthly pension payments:
Age Pension Rates as of March 2025
| Pensioner Type | Fortnightly Rate | Monthly Approx. | Increase |
|---|---|---|---|
| Single Pensioner | $1,149.00 | $3,209 | +$4.60 |
| Couple (each) | $866.10 | $2,332 (combined: $4,664) | +$3.50 each |
| Couple (combined) | $1,732.20 | $4,664 | +$7.00 |
These figures include:
- Base Pension
- Pension Supplement
- Energy Supplement
All payments are made fortnightly by default, but monthly estimates are shown for ease of planning.
What’s Included in the Pension Payment?
Each Age Pension payment comprises three parts:
- Base Rate – The core pension payment
- Pension Supplement – Support for utility bills, internet, and everyday costs
- Energy Supplement – Help with energy costs
For Singles:
- Base Rate: $1,051.30
- Pension Supplement: $83.60
- Energy Supplement: $14.10
- Total: $1,149.00 per fortnight
For Couples (each):
- Base Rate: $792.50
- Pension Supplement: $63.00
- Energy Supplement: $10.60
- Total: $866.10 per person per fortnight
Who Is Eligible for the Age Pension?
To receive the Age Pension, you must meet specific eligibility criteria:
1. Age Requirement
You must be 67 years or older to qualify for the full Age Pension in 2025.
2. Residency
You need to be an Australian citizen or permanent resident, having lived in Australia for at least 10 years, including 5 continuous years.
3. Income Test
| Status | Max. Income for Full Pension | Cut-off for Part Pension |
|---|---|---|
| Single | $212/fortnight | $2,510/fortnight |
| Couple | $372/fortnight (combined) | $3,836/fortnight (combined) |
4. Assets Test
| Status | Full Pension (Homeowner) | Part Pension Limit |
|---|---|---|
| Single | Under $314,000 | Under $697,000 |
| Couple (combined) | Under $470,000 | Under $1,047,500 |
Different limits apply for non-homeowners and certain transitional pensioners.
How Is the Pension Paid?
Centrelink pays the Age Pension every two weeks directly into your nominated bank account. You can manage and monitor your payments via your myGov account linked to Centrelink.
If you’re already receiving the pension, the March 2025 increase will be applied automatically. There’s no need to reapply or make changes unless your financial or living circumstances have changed.
The increase to $3,209 per month for single Age Pensioners and over $4,664 for couples is a much-needed financial boost in 2025. As inflation and essential costs continue to rise, this adjustment offers relief and helps pensioners maintain a decent quality of life.
If you’re eligible and already receiving the pension, keep an eye on your bank account and myGov portal to ensure your payments reflect the new rates. For those nearing eligibility, it’s never too early to check your entitlements and prepare your documentation.
FAQs
Do I need to apply to get the new increased rate?
No. If you already receive the Age Pension, the increased rate is automatically applied from March 20, 2025.
Will this pension increase affect other Centrelink benefits I receive?
No. The Age Pension increase is independent and won’t negatively impact other benefits. However, changes in income might affect eligibility for other payments.
Can I receive a part pension if my income or assets are slightly above the full pension threshold?
Yes. You may still qualify for a reduced (part) pension if your income or assets fall under the cut-off limits.