Australia’s Centrelink Age Pension is undergoing a major shift from August 2025—but it’s not ending. The pension will still support older Australians, yet the rules are evolving to reflect an ageing population, longer retirements, and the need for government sustainability. Let’s break down the most important facts and what they really mean for you.
Key Scheme Changes at a Glance
Here’s a snapshot of what’s changing. These new rules might mean some people need to plan more carefully or adjust their retirement strategy.
| Scheme Parameter | Before 2025 | From August 2025 |
|---|---|---|
| Minimum Age to Qualify | 67 | 67 years 6 months |
| Asset Limit (Single, Full Pension) | $656,500 | $625,000 (proposed) |
| Weekly Income Threshold (Single) | $204 | $190 (proposed) |
| Superannuation Assessment | Drawdown only | Includes unrealized gains |
| Homeownership Exemption | Primary residence exempt | No change |
People-First Overview: Why These Changes Now?
Retirement is different today compared to past decades. Australians are living longer—many well into their 80s—and superannuation balances are larger. But the growing number of retirees means more strain on government finances.
The Pension System is Not Ending. It’s being reshaped to balance long-term security with fairness and sustainability. The government wants to encourage reliance on superannuation and savings, making public support more targeted and less universal.
Who Will Be Most Impacted?
Not every Australian will feel these changes the same way. You might be more affected if you’re…
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Retiring soon without substantial superannuation savings
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An older adult shifting from JobSeeker or Newstart to Age Pension
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An early retiree with a health condition who isn’t old enough for the new pension age
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Approaching retirement as a non-homeowner or renter
These groups may need to prepare for a tighter eligibility threshold or a longer wait before qualifying for support.
Key Changes Explained
Minimum Age Increase
The qualifying age for the Age Pension will soon be 67 years and 6 months, moving up from 67. There’s also a proposal to raise the age further to 68 by 2026. This means people born after January 1958 will need to wait longer to apply for the pension.
Stricter Income and Asset Tests
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The asset threshold for a single person to receive a full pension is dropping from $656,500 to a proposed $625,000.
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The income test is tightening, with singles now allowed a maximum of $190 per week without reduction, down from $204.
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Importantly, your superannuation will be assessed not just on the money you withdraw, but on unrealized gains—meaning even increases in your super balance will count toward your income test.
No Change for Primary Homeowners
Your main home will still be exempt from asset testing, offering continued protection to homeowners.
Smarter, Digital Reporting
A major part of the reform is the switch to automated, digital reporting. You’ll use Centrelink’s online tools instead of paper forms to declare income and assets—making reporting faster, reducing errors, and ensuring fairer payments.
Adapting to the New Landscape
Less Dependence on Government
With the Australian government signalling that the Age Pension will be harder to access for some, personal superannuation and savings are now more important than ever for retirement security.
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Those with lower savings or uneven work histories might find it harder to qualify for full benefits.
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Being proactive and reviewing your retirement plan—and speaking with a financial advisor or Centrelink expert—will help you adapt to the changes.
The Long-Term Vision
The reforms aim to build a pension system that can last for decades, ensuring support for those who need it most, while keeping public finances healthy.
People’s Priority: What Should You Do Now?
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If you’re approaching retirement, review your superannuation and personal savings.
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Check your expected eligibility under the new rules—especially if you were aiming to retire shortly after your 67th birthday.
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Consider seeking advice from Centrelink or a financial advisor to avoid surprises.
Quick-Read Table: Core Scheme Changes
| Change | Before August 2025 | From August 2025 |
|---|---|---|
| Age Requirement | 67 | 67 years 6 months |
| Asset Cap (Single, Full Pension) | $656,500 | $625,000 (proposed) |
| Weekly Income Threshold (Single) | $204 | $190 (proposed) |
| Super Test | Drawdown only | Includes unrealized gains |
Your Most Common Questions—Answered
Is the Age Pension actually ending in Australia?
No, the Age Pension isn’t ending—it’s being reshaped with new rules for how and when you can claim.
Who will be most affected by the changes?
People with limited superannuation, those retiring early for health, renters, and anyone born after January 1958 will face the biggest impacts.
Do I need to do anything if I’m already receiving the pension?
If you’re already receiving the Age Pension, your payments will continue but you should stay updated about reporting changes and any possible re-assessment under new rules.
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