With July 1 just around the corner, Australian retirees are set to see significant changes to their pension entitlements. The upcoming pension rate changes July 1 will affect how much older Australians receive through Centrelink payments, particularly the aged pension. These adjustments, tied to inflation and government policy, are crucial for seniors relying on fixed incomes. Let’s break down what’s changing, who it affects, and what actions pensioners might need to consider before the new rates take effect.
What Are the New Pension Rates Effective July 1?
Each financial year, the Australian Government updates pension rates in line with the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI). For July 1, 2025, the Centrelink update includes increased fortnightly payments for both singles and couples.
| Pension Type | Current Rate (May 2025) | New Rate (From July 1, 2025) |
|---|---|---|
| Single | $1,116.30 | $1,145.20 |
| Couple (each) | $841.40 | $860.90 |
These new rates include the basic pension plus supplements such as the Pension Supplement and Energy Supplement.
Who Will Be Affected by the Changes?
The pension rate increase will primarily benefit Australians receiving the aged pension through Centrelink. However, how much you receive depends on your assets and income. The updated income thresholds mean more people could now qualify for at least a part pension.
For singles, the income limit to receive the full pension will rise to $204 per fortnight, while couples can earn up to $360 combined. The thresholds for part pension access have also been adjusted:
- Single pensioners: Up to $2,431.20 per fortnight
- Couples (combined): Up to $3,720.40 per fortnight
These changes help ensure pensions better reflect cost-of-living increases while allowing more flexibility for retirees with part-time work or small investments.
Impact of the New Income Thresholds on Eligibility
Rising income thresholds mean many retirees who previously missed out on the pension could now qualify. It also allows current recipients to take on modest extra earnings—such as casual work or rental income—without losing their full entitlement. This change provides a safety net for seniors trying to balance living costs without becoming fully reliant on superannuation.
Importantly, the thresholds apply differently depending on whether you’re single or part of a couple and whether your income is deemed or earned. The deeming rates, which assess the income from financial assets, remain unchanged at 0.25% for the first $60,400 (singles) or $100,200 (couples combined) and 2.25% above those levels.
What Should Pensioners Do Before July 1?
Ahead of the pension rate changes July 1, it’s wise to review your financial position. Retirees should:
- Check their latest Centrelink correspondence for updated payment details
- Assess how additional income (e.g. from work or investments) might affect payments under new rules
- Update income and asset details with Centrelink to avoid overpayment or underpayment
- Seek financial advice if nearing eligibility thresholds to understand the impact
Those turning age-pension age in the coming months should also explore whether they qualify under the new, more generous thresholds.
Conclusion
The Centrelink update for pension rate changes July 1 brings good news for many older Australians. With higher payment amounts and expanded income thresholds, these reforms are designed to offer more security and financial flexibility for retirees in 2025. Keeping up with these changes ensures you get every dollar you’re entitled to—and stay ahead of the game in managing your retirement finances.
FAQs
What is the pension rate change happening on July 1, 2025?
The Australian Government will increase the aged pension rates to reflect inflation and cost-of-living changes. Single pensioners will receive $1,145.20 per fortnight, while each member of a couple will get $860.90.
How do income thresholds affect my pension?
If your income exceeds a certain amount, your pension may be reduced. From July 1, 2025, higher thresholds mean more retirees can qualify or maintain higher payment rates.
Will the deeming rates change?
No changes to deeming rates have been announced for July 2025. They remain at 0.25% for lower balances and 2.25% for amounts above the threshold.
How do I report updated income or assets to Centrelink?
Use your MyGov account linked to Centrelink or contact Services Australia directly to update your details.
Can part-time workers still receive the aged pension?
Yes, under the new income rules, more part-time earners will remain eligible for full or partial aged pension payments.
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