From August 2025, the Australian government is updating the Age Pension eligibility rules, including changes to age requirements, income thresholds, and asset limits. These reforms are designed to keep pensions aligned with cost-of-living pressures and ensure fair access for retirees.
Key Changes to the Age Pension
1. Age Requirement
- The qualifying age for the Age Pension remains at 67 years, but additional health and residency checks will be strictly enforced.
2. Income Test Changes
- Singles: Can now earn up to $218 per fortnight and still receive the full pension. Partial payments available up to $2,516 per fortnight.
- Couples (combined): Full pension up to $380 per fortnight, with partial eligibility up to $3,844 per fortnight.
3. Asset Test Changes
- Single homeowners: Full pension if assets are under $321,500.
- Single non-homeowners: Full pension if assets are under $579,500.
- Couple homeowners: Full pension if assets are under $481,500 combined.
- Couple non-homeowners: Full pension if assets are under $739,500 combined.
- Higher asset cut-offs now apply, with part pension available up to $1,059,000 – $1,317,000.
Updated Pension Thresholds (August 2025)
| Category | Full Pension Threshold | Part Pension Cut-off |
|---|---|---|
| Single (Homeowner) | $321,500 assets / $218 income ft | $704,500 assets / $2,516 income ft |
| Single (Non-homeowner) | $579,500 assets | $962,500 assets |
| Couple (Homeowner, combined) | $481,500 assets / $380 income ft | $1,059,000 assets / $3,844 income ft |
| Couple (Non-homeowner) | $739,500 assets | $1,317,000 assets |
Why These Changes Matter
The government has linked these adjustments to inflation, housing pressures, and rising living costs.
“We want to make sure that older Australians can retire with dignity, while keeping the system sustainable for the future,” the Prime Minister said.
Frequently Asked Questions (FAQ)
1. Do I need to reapply under the new rules?
No. Centrelink will automatically update your entitlements based on the new limits.
2. Will part-pensioners benefit?
Yes. Many part-pensioners may receive higher payments due to raised thresholds.
3. When do the changes take effect?
From 1 August 2025.
4. Where can I check my eligibility?
Via your MyGov account or the Services Australia website.