Australia is making some big changes to pensions that kick in this year, and they make the rules for receiving the Age Pension clearer for couples and singles who’ve been contributing to the system all their lives. Starting this March, couples who are both qualified can expect around $845 paid to their bank accounts every other week, an amount that shows how the system is evolving to keep pace with the cost of living and retirement pressures.
What the New Payment Looks Like
As of March 20, 2025, couples reaching the Age Pension age will see their maximum payment bumped to 866.. For singles, the weekly amount grows similarly and will hit $1,149.00, signalling that the government is trying to keep pensions above the crunch line for big, unavoidable bills.
Who Can Get the Age Pension in 2025
To start receiving the Age Pension in 2025, here are the must-meet rules:
- Age rule: You must be 67; that number was slowly rising, and it’s finally here.
- Residency rules: To start getting the Age Pension, you need to have lived in Australia for certain time periods, so be prepared to prove you’re a resident.
- Income test: Couples can get the full pension if the two of you together earn less than 380 every two weeks in a year. If you earn a bit more, partial payments kick in as long as together you earn less than $3,844.40 every two weeks.
Older Rates and Special Cases
Finally, a few people still get the older transitional rates that were set up back in 2009 when the income test rules changed, so if you’re one of those, double-check if your payment is stuck on that older schedule.
Couples on the Age Pension each get a slightly smaller amount than single people, which is 762. If one part of the couple has to stay away because of illness, short-term care, or prison, the couple gets to collect the single rate, adding up to the same benefit as two single payments.
Tax Tips for Pensioners
Although the Age Pension counts as taxable income, a lot of retirees won’t earn enough to pay tax. Thanks to the Seniors and Pensioners Tax Offset (SAPTO), the tax-free threshold for most eligible seniors rises to around $29,000 each year for every person. Pensioners who prefer to play it safe can ask Centrelink to hold back a little tax from each payment, so they won’t face a big tax bill at the end of the year.
What Seniors Should Do Next
Now that the 2025 changes have kicked in, every Age Pension recipient needs to double-check they’re still eligible and that they’re receiving the right amount. Payments get reviewed twice a year—in March and September—so it pays to keep an eye on the details. Seniors getting close to pension age should go online and run one of the calculators that show how much they might receive according to the latest rules.
For people who find the pension system a bit tricky, Services Australia provides a help line and in-person advice to explain benefits, and to guide each senior through the paperwork. With a little bit of planning and the right info, people in Australia can make the most of the Age Pension changes.
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