Centrelink’s Higher Pension Payments in 2025 are a timely lifeline for Australians receiving the Age Pension, Disability Support Pension (DSP), or Carer Payment.
With the cost of living continuing to climb, these changes provide much-needed financial relief. If you’re already receiving support or expect to apply soon, knowing the new payment rates, eligibility rules, and bonus supplements is essential to make the most of what you’re entitled to.
Here’s a quick breakdown of the changes for 2025:
| Aspect | Details |
|---|---|
| Effective Date | July 1, 2025 |
| New Single Payment | $1,142.90 per fortnight |
| New Couple Payment | $859.70 each per fortnight |
| Income Free Area | $212 (single), $372 (couple) |
| Asset Test Threshold | Up to $566,000 (single, non-homeowner) |
| One-Off Bonuses | Up to $5,048 total in 2025 |
| Covered Payments | Age Pension, DSP, Carer Payment |
These updates aim to ensure pensions rise in line with inflation and real-world expenses.
Rates
The new rates kick in from July 1, 2025, and include base payments, the Pension Supplement, and the Energy Supplement.
| Recipient Category | Previous Rate | New Rate (July 2025) | 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 |
That may not seem like much fortnight to fortnight, but over a year, the increase adds up.
Eligibility
To receive higher payments, you must meet the following criteria for each payment type.
Age Pension
- Be at least 67 years old
- Have lived in Australia for at least 10 years
- Pass income and asset tests
Disability Support Pension (DSP)
- Have a permanent medical condition
- Meet medical and functional impairment rules
- Satisfy residency conditions
Carer Payment
- Provide daily care to someone who is severely disabled or frail
- Meet income, asset, and residency criteria
Thresholds
Asset and income tests determine if you qualify for a full or part pension.
Asset Test Thresholds (from July 2025)
| Situation | Homeowner | Non-Homeowner |
|---|---|---|
| Single | $314,000 | $566,000 |
| Couple | $470,000 | $722,000 |
Income Test Free Areas
| Situation | Threshold Per Fortnight |
|---|---|
| Single | $212 |
| Couple | $372 |
For each dollar earned above these limits, the pension reduces by 50 cents.
Bonuses
The 2025 federal budget includes extra payments to offset rising living expenses.
One-Off Payments
- $400 Economic Support Payment (April)
- $250 Cost-of-Living Supplement (May)
- $1,144 Cost-of-Living Boost (ongoing since March)
- Various additional supplements totalling up to $5,048
Example:
Mary, a single pensioner in Melbourne, previously received $1,116.30 per fortnight. She will now receive $1,142.90 — $692 extra annually. Combined with the $400 and $250 bonuses, her 2025 support increases by at least $1,342.
Tips
Here’s how to ensure you receive the full benefit:
- Regularly review and report income and asset changes
- Use the myGov portal to update details quickly
- Check your eligibility for extras like Rent Assistance or Carer Allowance
- Use Centrelink’s Payment and Service Finder for guidance
Mistakes
Avoid these common issues that could reduce or delay payments:
- Not updating personal details like address or bank account
- Forgetting to report part-time or casual income
- Ignoring Centrelink notifications or reviews
- Not reapplying if your situation improves
Staying proactive and engaged with Centrelink services is the best way to make sure you’re receiving what you’re entitled to.
FAQs
What is the new pension rate in 2025?
$1,142.90 for singles, $859.70 each for couples.
When does the 2025 pension increase start?
The new rates begin from July 1, 2025.
Who gets the one-off $400 payment?
Age Pension, DSP, and Carer Payment recipients.
What is the income test free area?
$212 for singles, $372 for couples per fortnight.
How do I update my Centrelink details?
Log in to myGov and update your Centrelink account.
