In a major announcement for seniors, the federal government has confirmed a $5,800 Centrelink pension boost will be delivered in 2025 to eligible recipients. This one-off increase is part of a targeted cost-of-living relief package, designed to help older Australians manage rising expenses, from groceries to utility bills.
Why the Boost Is Happening
Australia’s inflation rates and higher household costs have placed extra pressure on fixed-income households. The government says the payment is intended to provide meaningful financial relief while supporting local economies, as most pension recipients spend directly within their communities.
Who Will Receive the $5,800 Boost
The payment will be available to eligible recipients of the Age Pension, Disability Support Pension (DSP), Carer Payment, and some veterans’ pensions. To qualify, recipients must:
- Be receiving the eligible payment on the government’s set test date in 2025
- Meet residency and income/asset test requirements
- Have an active Centrelink or Department of Veterans’ Affairs account for payment processing
| Payment Type | Eligible Recipients | Boost Amount |
|---|---|---|
| Age Pension | Singles & couples | $5,800 |
| Disability Support Pension (DSP) | Singles & couples | $5,800 |
| Carer Payment | Singles & couples | $5,800 |
| Veterans’ Service Pension | Eligible veterans | $5,800 |
How and When the Payment Will Be Made
The $5,800 boost will be paid in full as a lump sum directly into the bank accounts of eligible recipients. The payment is expected to roll out in mid-2025, and there is no need to apply Centrelink will automatically process the deposit for those who qualify. The payment will appear as a separate entry from regular pension instalments.
Will It Affect Other Benefits?
The pension boost is tax-free and will not reduce regular pension payments. However, it may temporarily affect eligibility for some state or territory concessions if income reporting thresholds are crossed. Centrelink advises recipients to review their benefits to ensure they understand any impacts.
Looking Ahead
While this $5,800 boost is a one-off payment, regular pension indexation will still occur in March and September 2025, meaning eligible recipients could see further increases to their fortnightly payments.