The Australian Government has officially rolled out major Centrelink pension updates for the 2025–26 financial year, aiming to support retirees and low-income seniors amidst growing inflation and cost-of-living pressures.
These new rules include pension rate increases, changes to asset and income thresholds, and deeming rate revisions, all designed to offer improved financial security for eligible Australians.
Centrelink Age Pension Rate Increases
Starting from 20 March 2025, the Age Pension rates have been adjusted to better align with inflation and updated living expenses. This means more support for both single and partnered pensioners.
Updated Fortnightly Pension Rates:
- Single pensioners: Now receive $1,149.00
- Each member of a couple: Now receives $866.10
- Combined rate for couples: Now totals $1,732.20
These adjustments represent a modest increase and are automatically applied to eligible pensioners without requiring a new application.
New Asset and Income Test Thresholds
To determine eligibility and payment levels, the Centrelink Age Pension uses income and asset tests. These thresholds have been updated for 2025–26 to reflect economic changes and provide more access to benefits.
Asset Limits:
| Status | Homeowners | Non-Homeowners |
|---|---|---|
| Single | $314,000 | $566,000 |
| Couple (combined) | $470,000 | $722,000 |
Income Limits (before pension reduces):
- Single: Up to $212 per fortnight
- Couple (combined): Up to $372 per fortnight
If recipients earn more than these limits, their pension payments are reduced progressively under Centrelink’s taper rules.
Updated Deeming Rates for 2025–26
Deeming rates, which estimate income from financial investments, have also been updated for the new financial year. These changes affect how Centrelink assesses income from savings, shares, and term deposits.
- Single pensioners: First $62,600 deemed at 0.25%
- Couples (combined): First $103,800 deemed at 0.25%
Any amount above these thresholds is assessed at a higher deeming rate, which impacts the final pension amount. These new rates help pensioners retain more of their income support.
Superannuation Policy Updates
From 1 July 2025, the mandatory employer superannuation contribution increases to 11.5%, supporting long-term retirement planning. The concessional contribution cap also rises to $30,000, while non-concessional caps move up to $120,000 annually.
This boost helps future retirees grow their super savings more effectively while staying within tax-advantaged limits.
Centrelink Pension Updates 2025–26
| Update Area | New Rule for 2025–26 |
|---|---|
| Single Pension Rate | $1,149.00 per fortnight |
| Couple Pension Rate | $1,732.20 per fortnight (combined) |
| Single Asset Limit | $314,000 (homeowner) / $566,000 (non-homeowner) |
| Couple Asset Limit | $470,000 (homeowner) / $722,000 (non-homeowner) |
| Income Threshold (Single) | $212 per fortnight |
| Income Threshold (Couple) | $372 per fortnight |
| Deeming Threshold (Single) | $62,600 at 0.25% |
| Deeming Threshold (Couple) | $103,800 at 0.25% |
| Super Guarantee Rate | 11.5% from July 2025 |
The 2025–26 Centrelink pension updates reflect the government’s commitment to ensuring retirees have access to better financial stability. With changes to payment amounts, income and asset limits, deeming rules, and superannuation, these adjustments aim to provide more equitable and adequate support for older Australians.
Pensioners are encouraged to review their details with Centrelink to ensure they receive the full benefit of these changes.
FAQs
Who is eligible for the updated Centrelink Age Pension in 2025–26?
Australians of Age Pension age with assets and income within the updated thresholds and meeting residency requirements are eligible.
Will I automatically receive the new pension rate?
Yes, eligible pensioners will have their payments automatically updated to reflect the new rates.
What happens if my income or assets exceed the limits?
If your income or assets exceed the new thresholds, your pension payment will be reduced under taper rate rules or may stop completely.