From 1st November 2025, the Australian government will implement a series of new Centrelink pension changes designed to improve income support, ensure fairness, and align payments with the rising cost of living. These updates will affect Age Pension recipients, Disability Support Pensioners, and Carer Payment beneficiaries across Australia.
Updated Pension Rates
The most significant change is the adjustment in pension payment rates. The Age Pension and Disability Support Pension will see an increase of around $32.40 per fortnight for singles and $48.80 for couples combined. This rise is part of the regular indexation process, reflecting inflation and wage growth. The adjustment ensures that pensioners continue to maintain their purchasing power amid rising household expenses.
Revised Income and Asset Thresholds
Alongside the payment increase, new income and asset test thresholds will come into effect. These thresholds determine how much pensioners can earn or own before their payments are reduced. The higher limits mean more Australians will remain eligible for part pensions even with modest savings or superannuation balances. The government aims to encourage retirees to supplement their pensions through part-time work without losing benefits.
Changes to Deeming Rates and Work Bonus
The deeming rates, used to calculate income from financial investments, will remain under review. However, the government is expected to maintain lower deeming rates to support retirees with savings. In addition, the Work Bonus scheme continues, allowing pensioners aged over 67 to earn up to $11,800 a year without affecting their payments—a move to promote workforce participation among seniors.
Impact on Pensioners
These changes are expected to provide much-needed financial relief and flexibility for retirees. Seniors can expect increased fortnightly payments, improved access to benefits, and more control over how they manage their income.
Conclusion
The new Centrelink pension changes effective 1st November 2025 mark a positive shift for Australian retirees. With higher payments, revised thresholds, and supportive policies, the government reinforces its commitment to protecting pensioners’ financial security and quality of life.