The Australian government has announced a big change for older citizens who get the Age Pension. Starting in April and May 2025, eligible pensioners will receive a $846 increase. This amount includes a one-time bonus and a permanent raise in their regular payments. These changes are meant to help seniors deal with higher living costs, like rent, food, and medical bills.
If you or someone you know is receiving the Age Pension, it’s important to understand who qualifies, how much extra money they’ll get, and when the payments will arrive. This guide explains everything in simple terms.
What is the $846 Pension Increase?
The $846 increase is made up of two parts:
$546 Base Rate Increase
This is a permanent increase in regular pension payments. It includes a scheduled increase based on inflation and some extra money added by the government.
$300 One-Time Bonus
This is a single payment meant to help with the rising cost of living. It will be paid separately from your regular pension money.
After the increase, here’s what pensioners will get every two weeks:
- Single person: Up to $1,149.60
- Couple (combined): Up to $1,734.80
When Will You Get the Extra Money?
The government will start giving out the money in three stages:
- Late April 2025: One-time $300 bonus payment
- Early May 2025: The $546 permanent increase will start showing in regular payments
- Mid-May 2025: Catch-up payments for anyone who was missed earlier
You’ll be notified on myGov or by mail about your payment changes 2–3 weeks before they happen.
Who Can Get the Full $846 Increase?
To receive the full $846, you must meet certain rules. Not everyone will get the full amount.
Age Rules
You need to be the right age:
- Born between July 1, 1955 – Dec 31, 1956 → Must be 66 years and 6 months
- Born on or after Jan 1, 1957 → Must be 67 years old
Residency Rules
You must have:
- Australian citizenship or permanent residency
- Lived in Australia for at least 10 years, with 5 years in a row
Income and Assets Rules
Your income and what you own affect how much pension you get. Here are the maximums to still receive the full pension:
Income Limits (Per Fortnight):
- Single: Up to $190 for full pension, up to $2,290.20 for partial
- Couple (combined): Up to $336 for full, up to $3,502.00 for partial
Asset Limits:
- Single Homeowners: Full pension if assets are under $301,750
- Single Non-Homeowners: Up to $518,000
- Couple Homeowners (combined): Up to $451,500
- Couple Non-Homeowners: Up to $667,750
Special Pension Categories
Some people may not get the full amount but can still get part of the increase.
Transitional Rate
About 15,000 pensioners still get this older pension rate. They will get about 75-80% of the increase.
Partial Pensioners
If you get only part of the pension due to income or assets, you’ll get a smaller part of the $546 increase. But most still get the full $300 bonus.
Veterans and War Widows
People on service pensions from the Department of Veterans’ Affairs will get similar increases.
Pension Supplement
This extra payment for daily costs will also go up as part of the changes.
Extra Help: Benefits That Will Also Go Up
The pension increase also affects other benefits many seniors use.
Commonwealth Seniors Health Card
Income limits are rising so more people will still qualify, even after the pension increase.
Rent Assistance
- Single: Up to $158 per fortnight
- Couples: Up to $149 (combined)
Energy Supplement
This payment will continue to help with energy bills and is based on your location and household size.
How to Apply for Age Pension
If you are almost old enough or think you now qualify, here’s what to do:
Step 1: Check if You’re Eligible
Use the Services Australia website to check if you meet the age, residency, and financial rules.
Step 2: Gather Your Papers
You’ll need things like:
- ID (driver’s license, passport)
- Bank account info
- Details about your income, superannuation, and assets
Step 3: Apply
- Online: Through myGov (fastest)
- Paper form: Download and send
- In person: Visit a service center
- By phone: If you live in a remote area
Step 4: Wait for Approval
It takes 3–7 weeks to get a decision. You can track it on myGov.
Step 5: Start Getting Paid
Once approved, you’ll start receiving the new higher pension amount with your first payment.
Why Is the Pension Increasing Now?
The rise in pension is a response to economic challenges that affect seniors more than others.
Higher Living Costs
Seniors spend more money on essentials like medicine, food, and heating. They also don’t have as many options to cut spending.
Rent Is Rising
Many seniors rent, and rent has gone up by 7–10% in big cities.
Health Costs
Medical bills are rising, especially for people with long-term health problems.
What Should Pensioners Do Now?
To make sure you don’t miss out:
- Keep your myGov info up to date
- Check that your income and assets are reported correctly
- Watch for updates from Services Australia
- Think about talking to a financial advisor to help you manage your money better
Other Help If You Don’t Qualify
If you don’t get the Age Pension, you might still get help:
Commonwealth Seniors Health Card
Helps pay for medicines and doctor visits even if you earn too much for the pension.
Work Bonus
You can work and earn up to $300 per fortnight without it affecting your pension.
Pension Loans Scheme
If you own a house but don’t have much income, you can get loan payments from the government using your home as security.
Make the Most of the Age Pension Increase
The $846 increase in the Age Pension is one of the biggest improvements in recent years. It gives both immediate and long-term help to seniors across Australia. To benefit fully:
- Know the rules
- Stay informed
- Update your details
- Get advice if needed
This increase will help many older Australians manage their budgets better and live more comfortably during retirement.
Frequently Asked Questions (FAQs)
What is the $846 Age Pension increase?
The $846 increase is a boost in the Age Pension that includes two components:
A permanent $546 increase in the regular fortnightly pension rate.
A one-time $300 Economic Support Bonus to help with living costs.
I already receive a partial pension. How does this increase affect me?
If you receive a partial pension due to your income or assets, you will still get a part of the $546 increase. However, most partial pensioners will still receive the full $300 Economic Support Bonus, as it is less affected by income and assets.
I am a veteran. Will I get the increase?
Yes! If you receive a service pension from the Department of Veterans’ Affairs, you will receive the same pension increase as those on the Age Pension. This includes the $546 base increase and the $300 bonus.
What if I don’t qualify for the Age Pension?
If you don’t qualify for the Age Pension, you might still be eligible for other support programs, such as the Commonwealth Seniors Health Card or the Work Bonus that allows you to earn up to $300 per fortnight without it affecting your pension.
Must Visit:- Looped Back