Starting from January 1, 2025, the Australian government will implement an $841 increase in the Age Pension, offering an additional $21 per fortnight to eligible recipients. This increase aims to help older Australians manage the rising cost of living and inflation.
For many pensioners, the Age Pension serves as their primary income source, and this adjustment provides essential financial support. This article will outline the payment schedule, eligibility requirements, the process to apply, and other additional benefits available to pensioners.
Overview of the $841 Age Pension Increase and $21 Bonus
The $841 Age Pension increase scheduled for 2025 is a crucial move to support older Australians facing inflation and increased living costs. In addition to this annual increase, pensioners will receive an additional $21 bonus per fortnight.
The great news is that pensioners do not need to reapply for the increase; it will be automatically adjusted in their payments. To verify eligibility or apply, visit the Services Australia – Age Pension page.
| Aspect | Details |
|---|---|
| Annual Increase | $841 per year |
| Fortnightly Increase | $21 extra per fortnight |
| Effective Date | January 1, 2025 |
| Eligibility Age | 67 years |
| New Fortnightly Rates | Single: $1,144.40, Couple (combined): $1,725.20 |
| Additional Bonus | One-time $21 cost-of-living bonus |
| Next Adjustment Date | March 20, 2025 |
| Official Resource | Services Australia – Age Pension |
What is the Age Pension?
The Age Pension is a financial benefit provided by the government to Australians aged 67 years and over. It aims to ensure that older individuals have access to a basic living standard in their retirement years. To qualify for the Age Pension, applicants must meet specific residency, income, and asset criteria.
The Age Pension is reviewed and adjusted twice a year—once in March and again in September—to accommodate inflation and changes in the cost of living.
New Age Pension Rates for 2025
Starting January 1, 2025, the updated Age Pension rates will be as follows:
For Singles
- Previous Rate: $1,116.30 per fortnight
- New Rate: $1,144.40 per fortnight
- Increase: $28.10 per fortnight ($841 annually)
For Couples (Combined)
- Previous Rate: $1,682.80 per fortnight
- New Rate: $1,725.20 per fortnight
- Increase: $42.40 per fortnight ($1,102.40 annually)
The updated rates include the basic pension, pension supplement, and the energy supplement, ensuring pensioners receive the highest possible entitlement.
Eligibility Requirements for the Age Pension in 2025
To qualify for the Age Pension, individuals must meet the following criteria:
1. Age Requirement
- Applicants must be 67 years or older (as of 2025).
2. Residency Status
- Applicants must be an Australian citizen or permanent resident.
- They must have lived in Australia for at least 10 years, with at least 5 years being continuous.
3. Income Test
The Age Pension is subject to an income test, which limits how much individuals can earn before their payments are reduced. The thresholds for 2025 are:
- Singles: Can earn up to $204 per fortnight before the pension is reduced. For every $1 earned over this amount, the pension will be reduced by 50 cents.
- Couples (combined): Can earn up to $360 per fortnight before reductions apply.
4. Assets Test
The value of an individual’s assets (excluding their primary home) must fall below the following limits:
| Asset Type | Single Homeowner | Couple Homeowners (Combined) | Single Non-Homeowner | Couple Non-Homeowners (Combined) |
|---|---|---|---|---|
| Threshold Limit | $301,750 | $451,500 | $543,750 | $693,500 |
If an individual’s income or assets exceed these limits, their pension payment may be reduced or unavailable.
How to Apply for the Age Pension Increase and $21 Bonus for 2025
Eligible individuals can apply for the Age Pension and its associated benefits through the following methods:
1. Online Application
- Visit myGov and link your Centrelink account.
- Complete the Age Pension application form online.
2. By Phone
- Call 13 23 00 to apply via phone assistance.
3. In-Person Application
- Visit your nearest Services Australia service center with the necessary documents.
Documents Required
- Proof of identity (passport, driver’s license)
- Income and asset statements
- Residential details
Additional Benefits for Pensioners in 2025
In addition to the pension increase, recipients may also qualify for various government support programs, including:
1. Energy Supplement
- Helps pensioners manage increasing energy costs.
2. Commonwealth Seniors Health Card
- Provides discounts on prescriptions, medical services, and transportation.
3. Rent Assistance
- For those renting privately, pensioners may be eligible for additional rent support.
4. Discounted Public Transport
- Reduced fares for public transportation.
5. The One-Time $21 Cost-of-Living Bonus
- A special one-time bonus will be included in the first payment of 2025 to help with living expenses.
Full Payment Schedule for 2025
The Age Pension payments are made fortnightly. Below is the payment schedule for the first quarter of 2025:
| Payment Date | Fortnightly Amount (Single) | Couple (Combined) |
|---|---|---|
| January 3, 2025 | $1,144.40 | $1,725.20 |
| January 17, 2025 | $1,144.40 | $1,725.20 |
| January 31, 2025 | $1,144.40 | $1,725.20 |
| February 14, 2025 | $1,144.40 | $1,725.20 |
| February 28, 2025 | $1,144.40 | $1,725.20 |
All payments will be automatically deposited into the recipient’s nominated bank account.
The $841 Age Pension increase along with the $21 bonus represents a significant boost for older Australians who depend on the Age Pension to meet their living expenses. This change will provide vital relief to pensioners facing the effects of inflation, helping them maintain their standard of living.
With an easy application process, pensioners are encouraged to apply or verify their eligibility through Services Australia. Along with the increased payments, pensioners can benefit from additional assistance such as the Energy Supplement and rent support.
FAQs
When will the new Age Pension increase take effect?
The $841 Age Pension increase will start on January 1, 2025, with the new $21 per fortnight bonus included in the payments.
How much will I receive if I’m single?
Single recipients will receive $1,144.40 per fortnight from January 1, 2025.
How much can I earn before my pension is reduced?
Singles can earn up to $204 per fortnight before reductions apply. Couples can earn up to $360 per fortnight.
Can I apply for the Age Pension online?
Yes, you can apply online by linking your Centrelink account through myGov.