5 Increase Coming in Centrelink Pensions This Year: What You Should Know About: Centrelink provides economic assistance to support Australian citizens. These payments help students, families, carers and others in need to manage their living expenses. Payment amounts are updated based on factors like inflation and the Consumer Price Index (CPI).
5 Increase Coming in Centrelink Pensions This Year
Due to rising inflation and changing economic conditions, Centrelink is likely to revise payment amounts in 2025.
Regular Changes
Several changes affecting the age pension occur either annually or more frequently. These changes include:
- The government-age pension usually increases in March and again in September.
- Thresholds for income and assets test are indexed in March, July And September
- Super income stream minimum drawn are reviewed every July
- Deeming rates and thresholds are reviewed every July
Depending on economic circumstances, adjustments may also be made at other times.
Age Pension rate changes
Each year, the commonwealth Government reviews the age pension rates for those who have reached retirement age.
| Maximum basic rate |
$1,047.10
|
$789.30 each | $1,047.10 each |
| Maximum pension supplement | $83.20 | $62.70 each | $83.20 each |
| Energy Supplement | $14.10 | $10.60 each | $14.10 each |
| Total per fortnight | $1,144.40 | $1,144.40 | $1,144.40 each |
Increase working limits for pensioners
Pensioners, including age pensioners, can earn up to $300 per fortnight without impacting their pension entitlement; this is called the work Bonus. The unused part of the fortnightly work bonus can accumulate in “Work Bank” to a maximum of $11,800. Each new person on the age pension commences with a “Work Bank” allocation of $4,000. To encourage older Australians to work a bit more the government temporarily increased this sum from $2,000 to $4,000 in 20222. This change was made permanent on 1 March 2025.
Changing the work test for older Australians
The work test was changed on 1 July 2022. Under the change if you are under 75 years of age during the financial year you can make non-concessional or salary sacrifice contributions, provided your super balance is less than $1.9 million in July of that financial year. The work Test continues to apply If you wish to claim personal super contribution deductions.
Deeming Rates Changes
As part of its response to the economic impacts of the COVID-190 pandemic in 2022, the Federal Government announced a reduction to the upper and lower deeming rates used by Centrelink for estimating pensioner incomes. These rates will remain until at least 30 June 2025.
Deeming rate thresholds are the amount above which the upper rate is applied, The current deeming assets threshold rates are outlined below.
| Deeming rates 2025/2025 | Single | Couple (combined) |
| 0.25% | Up to $62,600 | Up to $103,800 |
| 2.25% | Above $62,600 | Above $103,800 |
The higher rate only applies to the amount of assets above the threshold.
How do you keep on top of these changes?
The team at Retirements Essentials works hard to ensure all our information is as up-to-date as possible. We have prepared a comprehensive overview of all Age Pension rules so you can refer to them as often as you like, secure in the knowledge that they cover all relevant government changes as soon as they become law. The following aspects of the Age Pension are covered in this overview:
- How the Age Pension is Calculated
- The income thresholds- How much you can earn before your pension is affected
- The Asset thresholds
- The current Age Pension rates
- When Age Pension rates change each year
- When the asset and income threshold changes each year
- Other changes that could occur in 2025 that could affect the Age Pension.
We trust this brief overview of what is ahead for government entitlements has been helpful but [please let us know if you have any further que. we can answer. on change to retirement income in 2025.
How Does The Increase Impact, Pensioners?
The Age Pension increase provides much-needed relief to retirees facing rising costs of living. While the adjustments help offset inflationary pressures, advocacy groups have pointed out that they may not fully cover escalating expenses such as housing, healthcare, and utilities. Pensioners should regularly monitor their Centrelink accounts to ensure payments reflect these changes.
example
- Single pensioners will see an additional $28.10 per fortnight, which can help manage basic expenses like groceries or utility bills.
- Couples will get a combined increase of $42.40 per fortnight, offering slightly more financial flexibility.
However, some experts argue that future measures are needed to address the growing financial challenges faced by older Australians.