The morning sun streams through Margaret Wilson’s kitchen window in suburban Adelaide as she sorts through her mail.
The 72-year-old former nurse spreads her Centrelink correspondence across a well-worn dining table, calculator and reading glasses at the ready.
“It’s a monthly ritual,” she explains, tapping a finger on the latest statement. “Making sense of what’s coming in, what’s changed, and whether it’ll cover what’s going out.”
For Wilson and nearly 2.6 million Australian seniors receiving the Age Pension, understanding the details of their Centrelink payments has taken on renewed importance as March 2025 approaches.
Recent adjustments to payment rates, eligibility requirements, and supplement structures have created both opportunities and confusion for older Australians navigating the social security system.
March 2025 Payment Rates: Breaking Down the $790
The headline figure of $790 represents the base fortnightly rate for single pensioners receiving the full Age Pension, which translates to approximately $1,580 per month. However, this simplified figure doesn’t capture the complex reality of how pension payments are actually structured or delivered.
“People hear ‘$790 a fortnight’ and think that’s what everyone gets,” explains financial counsellor James Chen, who specializes in helping seniors manage their benefits. “In reality, what lands in your account depends on your circumstances, other income, assets, and which supplements you’re eligible for.”
The current maximum fortnightly rates as of March 2025 break down as follows:
Single pensioners:
Base pension: $790.40 per fortnight
Pension Supplement: $81.20 per fortnight
Energy Supplement: $14.10 per fortnight
- Total maximum payment: $885.70 per fortnight
Couples (combined):
Base pension: $1,192.00 per fortnight ($596 each)
Pension Supplement: $122.40 per fortnight ($61.20 each)
Energy Supplement: $21.20 per fortnight ($10.60 each)
Total maximum payment: $1,335.60 per fortnight
These figures reflect the most recent indexation adjustment applied in March 2025, which increased payments by 2.8% to account for inflation and changes in the cost of living.
For Margaret Wilson, who owns her home but has limited savings and no other income, the full rate applies. “The indexation helps, but it never quite keeps up with the real increases in costs,” she notes, pointing to her latest electricity bill. “That’s gone up nearly 6% since last year.”
Payment Dates: When the Money Arrives
Unlike some government benefits that arrive on fixed dates, Centrelink payments follow a personalized schedule based on when recipients first started receiving their pension. For March 2025, payments will follow the standard pattern:
Group A: Payments on March 6th and 20th Group B: Payments on March 13th and 27th
“I’m in Group A,” Wilson explains. “Been that way since I started receiving the pension five years ago. You get used to budgeting around those dates.”
Chen notes that understanding your payment schedule is crucial for managing finances on a fixed income. “Many of my clients arrange direct debits for major bills to align with their pension days. It provides peace of mind knowing the money will be there when payments are due.”
For new recipients, Centrelink typically assigns them to either Group A or B based on current system balance, though they can request a specific schedule if there are compelling reasons.
The Commonwealth Seniors Health Card Expansion
Perhaps the most significant recent change for many older Australians is the expanded eligibility for the Commonwealth Seniors Health Card (CSHC). As of January 2025, the income thresholds increased to $105,000 for singles and $168,000 for couples combined—a substantial increase from previous limits.
“This is a game-changer for many self-funded retirees,” explains retirement specialist Sophia Nguyen. “The card provides PBS-subsidized medications, bulk-billed doctor visits in many practices, and various state-based concessions. For seniors with chronic health conditions, the savings can amount to thousands annually.”
The expanded eligibility is expected to bring approximately 35,000 additional seniors into the program. For those not receiving the full pension due to income or assets test restrictions, the health card provides crucial support for managing healthcare costs.
Robert Jenkins, 68, from Brisbane, falls into this category. “I don’t get the full pension because of my superannuation income, but the health card makes a massive difference,” he says. “My heart medication used to cost me $120 a month. Now it’s $32.60.”
To receive the card for March 2025, applications needed to be submitted by February 15th, though Centrelink will process late applications for future eligibility.
Rent Assistance Boost for Private Renters
Another notable change affecting many pensioners is the increased Commonwealth Rent Assistance (CRA) payment, which saw a 10% permanent increase in September 2024, followed by an additional indexation adjustment in March 2025.
The maximum fortnightly amounts now stand at:
Single pensioners: $157.20
Couples without children: $148.00
To receive the maximum amount, single pensioners must pay at least $348.67 in fortnightly rent, while couples need to pay at least $422.27.
“The rent increase helps, but it’s still catching up to market realities,” says housing advocate Diana Morales. “In capital cities, the median rent for even a one-bedroom unit far exceeds the thresholds for maximum assistance.”
For Elizabeth Cooper, 75, who rents a small apartment in Geelong, Victoria, the increased assistance has provided some relief. “Before the boost, nearly 65% of my pension went to rent,” she explains. “It’s still my biggest expense, but the extra assistance means I’m not cutting back on essentials quite as much.”
Deeming Rate Changes Impact Part-Pensioners
March 2025 also brings adjustments to deeming rates—the assumed returns on financial assets that Centrelink uses to calculate pension entitlements for the income test. After successive Reserve Bank interest rate increases throughout 2024, the government has adjusted deeming rates upward:
Lower threshold (singles up to $60,400, couples up to $100,200): 2.25% (up from 1.75%)
Upper threshold (amounts above those limits): 4.00% (up from 3.25%)
“These changes primarily affect part-pensioners with significant financial assets,” explains financial adviser Martin Brooks. “For someone with $300,000 in deemed assets, the change could reduce their pension by approximately $35 per fortnight.”
The government has defended the adjustments as necessary to reflect actual returns available in the market, pointing to term deposit rates now exceeding 4.5% at many financial institutions.
However, seniors’ advocacy groups have criticized the timing, arguing that many older Australians remain conservative with investments and haven’t adjusted their portfolios to higher-yielding options.
Work Bonus Changes Encourage Participation
For seniors interested in supplementing their pension with part-time work, changes to the Work Bonus program offer new opportunities. The program allows pensioners to earn up to $300 per fortnight without affecting their pension rate, with unused amounts accumulating in a “Work Bonus bank” up to a maximum of $7,800.
“The Work Bonus changes acknowledge that many seniors want or need to remain connected to the workforce,” says economist Patricia Lee. “With skill shortages across multiple industries, this creates a win-win situation for the economy and for seniors wanting to boost their incomes.”
John Simons, 70, works one day a week at a hardware store in Hobart. “The Work Bonus means I can earn about $800 a month without losing a cent of pension,” he explains. “That extra money funds my fishing trips and helps when the grandkids visit. Plus, I enjoy the social aspect of remaining in the workforce.”
Digital Payment Summary Changes
Starting in March 2025, Centrelink has also updated how payment summaries are delivered through the myGov platform and Centrelink app. The new format provides a more detailed breakdown of payment components and any deductions.
“The improved digital statements offer more transparency,” says Chen. “Recipients can now see exactly how their payment was calculated and identify any discrepancies more easily.”
For those uncomfortable with digital platforms, paper statements remain available upon request, though Centrelink has reduced their frequency to quarterly rather than monthly to reduce administrative costs.
Navigating the System: Tips from Experts
For seniors trying to maximize their entitlements, financial counselors offer several recommendations:
Regular reviews: “Request a full entitlement review at least annually,” suggests Chen. “Circumstances change, and so do program rules. Many seniors miss out on supplements they qualify for simply because they haven’t been reassessed.”
Report changes promptly: “Any change in circumstances—whether income, assets, or living arrangements—should be reported within 14 days,” warns Nguyen. “Failure to report can result in debts that are increasingly being actively pursued by Services Australia.”
Seek expert advice: “The interaction between the pension, taxation, and aged care systems is extremely complex,” notes Brooks. “Professional advice from a financial adviser familiar with Centrelink rules can often pay for itself many times over.”
Understand concessions: “Beyond the federal payments, don’t overlook state and local government concessions,” recommends Morales. “These can significantly reduce council rates, utility bills, and transportation costs.”
Centrelink : June 2025 Indexation
While March brought modest increases, attention is already turning to the next major indexation adjustment scheduled for June 20, 2025. Early projections suggest it could be one of the largest in recent years, potentially increasing payments by 3.2-3.5%.
“The June adjustment will reflect the significant inflation we saw in the first quarter of 2025,” explains Lee. “Particularly the increases in food, healthcare, and energy costs that disproportionately affect seniors.”
For Margaret Wilson, each adjustment helps, but the real challenge remains bridging the gap between fixed income and variable expenses. As she finishes organizing her papers, she reflects on how the system has evolved over the decades.
“When I first heard about the Age Pension as a young woman, it seemed so straightforward,” she says. “Now it’s this complex web of rates, supplements, thresholds, and tests. I’m grateful for the support, truly I am, but sometimes I wish they’d simplify it all.”
As Australia’s population continues to age, with more than 4 million citizens expected to reach pension age by 2030, the pressure to both sustain and streamline the system will only grow. For now, seniors like Wilson continue their monthly ritual of sorting through statements and adjusting budgets, navigating a support system that remains essential even as it becomes increasingly complex.