With delight for the elderly in the country, the government has confirmed an increase in the Old Age Pension occurring in June 2025. The increase is irregular while keeping in check the nominal indexation and is intended to allow retirees to have some purchasing power with respect to rising prices. With these higher payments, pensioners with very little income stand a much better chance of getting by financially.
What Are the New Pension Rates?
Starting from June 2025, the single pensioner will get up to $935.40 per fortnight as against the earlier limit of $891. This splendid increase of around $44.40 is geared toward alleviating the impact of inflation on expenses of everyday items such as groceries, healthcare, and utilities. Couples on the combined pension will now be entitled to $1,410.80 per fortnight in increased payment as compared to the earlier amount of around $1,352.
The new changes reflect the basic pension plus the supplements applicable to this pension, including the Energy Supplement and the Pension Supplement, all of which are reviewed depending on the indexation.
Eligibility Criteria Amended
Payments remain on the increase, and so must the rules of eligibility that go into effect in June 2025. The age of eligibility remains at 67; however, some adjustments went into income and asset tests reflecting whether a person obtains a full or part pension. These have been increased slightly so that more people may qualify for the part payment or retain the present payments they are getting with slight increases in income or savings.
The new income limit of eligibility for a single pensioner to receive a full pension will increase to $204 per fortnight, while the asset limit for homeowners will be increased to $301,750. For non-homeowners, the limit will be $543,750. These increases are indexed to rise with inflation, intending to protect pensioners from losing eligibility on slight financial turnovers.
Dates for Issue of Payments
Eligible pensioners will receive the higher rates starting on 13 June 2025. This will be along with the regular payment cycle. Those who are already being paid do not have to do anything about it, as Services Australia will automatically update payments.
