Starting 1 July 2025, major updates are coming to Centrelink payments in Australia — and yes, it could mean extra money in your pocket. But not everyone is talking about it… and not everyone will benefit unless they understand what’s changing.
If you’re a pensioner, carer, or receive support from Centrelink, this is something you can’t afford to ignore. Here’s what we know so far — and why it matters.
WHAT’S CHANGING FROM 1 JULY?
The Australian Government is adjusting the Income Free Area (IFA) for Age Pensioners and other Centrelink recipients. In short: you’ll be allowed to earn more money without reducing your pension.
Currently, single pensioners can earn up to $204 per fortnight and couples up to $360 combined before their payments are affected. But starting 1 July 2025, the IFA will be permanently increased.
New rates:
- Singles: Up to $300 per fortnight
- Couples (combined): Up to $540 per fortnight
This means pensioners can keep more of their Centrelink payments while doing casual or part-time work — a move many have been waiting for.
WHO BENEFITS FROM THIS BOOST?
The increase will mainly benefit those who:
- Receive the Age Pension
- Receive the Disability Support Pension
- Are on a Carer Payment
Basically, if you’re currently receiving Centrelink support and doing any form of paid work, this change means you can earn more and still keep your benefits.
WHY THIS CHANGE MATTERS
With rent, groceries, and energy bills continuing to rise, many older Australians are taking up part-time jobs just to make ends meet. But under the old rules, earning a few hundred dollars could already cause a pension reduction.
This new rule helps remove that penalty — giving you more breathing room and more incentive to stay active in the workforce if you’re able.
HOW TO MAKE SURE YOU QUALIFY
This payment boost is automatic, but you must make sure:
- Your income is properly declared every fortnight
- Your Centrelink and MyGov details are up to date
- You’re not exceeding the
Visit the official Services Australia website or log in to your MyGov account to double-check your details.
WHAT YOU SHOULD DO NOW
Don’t wait until July to prepare. Here’s what you can do today:
- Review your income sources and check how much you’re currently reporting
- Log in to MyGov and confirm your payment type
- Talk to a financial advisor or community centre if you’re unsure how this affects you
This update could mean thousands of Australians getting more money without lifting a finger — but only if they’re in the know.
Disclaimer: This article is for informational purposes only. Please refer to official sources such as Services Australia for the most accurate and updated information.