The new extension in Centrelink payments and changes in eligibility will come into effect from September 20, 2025 and is set to benefit retirees and pensioners in Australia, and is a step towards the proposed 3,000 dollar a month pension boost. This uplift is in tandem with the government’s bi-annual assistance, designed to counter rising costs of living in Australia. The uplift is a result of the changes to the commonwealth seniors health entitlement card and increased age retirement payment. The measures will go a long way in easing the financial pressure faced by many retirees and older Australians.
The changes to the Commonwealth Seniors Health Card is one of the most significant of these changes. It will now benefit renters beyond the 65,000 dollar threshold. The moved will benefit single retirees earning 101,105 dollars a year, up from 99,025. Couples will benefit with a rise from 158,440 dollars to 161,768 dollars, with a gross income. It is calculated that with every commonwealth card, seniors save up to 3,000 dollars a year and spend less on administering health, medicines, and other bills.
Increased Age Pension and Other Payment Rates
In addition to the increased health card eligibility, the rate of Age Pension payable will also go up. Singles will, on average, receive an additional $29.70 every 14 days, which will result in an average Age Pension payment of $1,178.70. Partnered pensioners will receive $22.40 extra every 14 days. Other Centrelink payments, including the JobSeeker payment, the Parenting Payment, the Disability Support Pension, and the Youth Allowance, will also receive percentage increases in line with inflation. These increases are part of the Australian Government’s ongoing efforts to assist at-risk Australians throughout the continuing economic crisis.
New Deeming Rates Impact Pension Eligibility
For a single person, the first $53,200 is deemed to be invested at 0.75%, and any amount above that is deemed at 2.75%. For a couple, the first $88,000 is deemed invested at 0.75%, and anything above that at 2.75%. These increases have not been reviewed for more than five years and are intended to better align to the prevailing market situation. Approximately 460,000 people on pension will be impacted by these adjustments, which are likely to change their income and payment assessments.
