Relief, of a sort, is finally in sight for thousands of Australian pensioners.
Selective age pensioners will get up to $1,853 a fortnight when they receive a Centrelink pension boost from July 2025 to help older Australians cope with cost of living pressures.
Whether its electricity bills that seem to never stop rising, grocery bills that have doubled from what they were a couple of year’s ago or just the difficulty of trying to make a fixed income stretch through a volatile economy- this increase in payment is more than welcome. It’s a lifeline.
What’s Up With the $1,853 Bump?
The increase is not a one-time benefit or a temporary payment. Instead, it forms part of the Federal Government’s new-look pension indexation scheme which will be applied from 1 July 2025 as a result of new inflation figures, revised cost of living amounts and alterations to the pension formula.
Spread throughout the year, fortnightly pension payments will be going up by approximately $71.25, which over 26 fortnights equates to the $1,853 figure per annum.
But for lots of age pensioners, this isn’t just a number — it’s real money that helps pay for everyday essentials such as medication, heating and transport.
Who Would Benefit from the Boost?
The pension supplement is available to both full-rate and part-rate Age Pensioners that qualify Centrelink’s income and assets test. That includes:
✅ Australians at or above the relevant pension age (currently 67)
✅ People who meet the income and asset tests
✅ Be an Australian permanent resident living in Australia
✅ Be an Australian resident for a minimum of 10 years, with at least 5 years of uninterrupted residency
Carer Payment and Disability Support Pension recipients with regard to Age Pension will also most likely also rise by the same amount but the actual amount will be determined by individual circumstances.
Additional Pension Rates (From July 2025) Payable Fortnightly
Here’s what those revised base rates are projected to be after the indexation:
Category Existing Rate New Rate (July 2025)
One (Base Rate) $1,002.50 $1073.75
Couple (Each) $755.70 $826.95
These totals don’t include any supplement payments such as the Energy Supplement and the Pension Supplement, as these will continue to be paid separately.
Advantages and Disadvantages of the $1,853 Centrelink Pension Boost
Pros Cons
Would provide lasting relief, not just a single shot Not necessarily enough to compensate for real inflation in housing/food
Reflects real C.O.L.A (cost of living adjustment) Still prone to increases and adjustments for income and assestaking
Indexation applied automatically – no claim required Part-pensioners to gain less than for other welfare recipients
Supports older Australians to live with dignity and independence Does not support seniors who are not eligible for Centrelink benefits
How to Maximize the Increase
An additional $71 a fortnight may not seem like much, but cumulatively it mounts up. Such small raises can cover critical expenses for retirees trying to scrape by:
These can be prescription drugs or health services
Utility bills, especially in winter and summer months
Necessities like grocery or produce items
Public transportation, petrol, or car service
Small home improvement or repair projects
If you are already receiving the pension, you will not need to take any action. August 30th, 2020 added You will receive the new amount by direct deposit from your regular payment date in July, automatically.
$1,853 Centrelink Pension Boost from July 2025
It represents a value placed on age and disability, and more than that over 1,000 words and numbers, it stands for the conception of a fair society.
An acknowledgement that pensioners deserve not only to survive, but to live with dignity.
It may not address every problem, but it certainly doesn’t hurt. For many of you, it will be the difference between being able to pay your rent or not. And in times like these, a dollar goes a long way.
