Aged Pension Reforms – As of June 1, 2025, major reforms to the Aged Pension and Superannuation systems in Australia have come into effect. These changes are set to reshape how seniors receive benefits, how superannuation is accessed, and the long-term financial outcomes for retirees. With rising cost-of-living pressures, these updates are designed to provide greater financial security—but only if you understand and act on them correctly.
Below is a detailed guide covering all key updates, including new payment rules, eligibility changes, superannuation access reforms, FAQs, and official contact channels.
What Are the June 2025 Aged Pension Reforms?
The federal government has rolled out several updates aimed at aligning the Aged Pension system with modern cost-of-living realities and improving fairness. These include:
- Increased pension thresholds and payment rates
- Stricter rules for residency and asset testing
- Revised income testing brackets
- Enhanced Work Bonus for eligible retirees
- Mandatory revalidation of documents by June 30, 2025
Key Pension Changes in Brief:
- Base Pension Rate Increased by up to $42.50 per fortnight
- Asset Threshold Adjusted to allow more retirees to qualify
- Work Bonus extended with additional $4,000 annual credit
- Residency Proof revalidation made compulsory for continued payments
What Superannuation Reforms Are Now in Effect?
Superannuation reforms are designed to promote transparency, reduce fund management costs, and improve post-retirement income stability. These changes are crucial for anyone drawing or planning to draw from their superannuation in the next few years.
Major Superannuation Updates:
- Minimum Drawdown Rates adjusted from 4% to 5% for retirees under 75
- Super Guarantee increased from 11% to 11.5%
- Higher Cap for Voluntary Contributions raised to $30,000 per year
- Introduction of Default Retirement Income Strategies by super funds
- Mandatory annual fund performance reporting to members
Pension vs Superannuation Changes from June 1, 2025
| Category | Previous Rate | New Rate/Rule from June 1, 2025 |
|---|---|---|
| Base Aged Pension (Single) | $1,116.30/fortnight | $1,158.80/fortnight |
| Asset Limit (Single, Homeowner) | $674,000 | $722,500 |
| Work Bonus Annual Cap | $7,800 | $11,800 (with $4,000 bonus) |
| Super Guarantee Rate | 11% | 11.5% |
| Voluntary Contribution Cap | $27,500/year | $30,000/year |
| Minimum Drawdown (Age 65–74) | 4% | 5% |
| Retirement Strategy Mandate | Optional | Compulsory for all super funds |
| Pension Revalidation Deadline | Not applicable | June 30, 2025 |
Expected Impact:
- Retirees will see a net increase in payments
- Improved superannuation returns through competitive fund reporting
- Better retirement planning tools made available by providers
Important Note:
All pensioners must revalidate their documents with Centrelink or risk suspension of benefits. This includes ID, bank details, and residency proof.
How to Revalidate:
Visit www.servicesaustralia.gov.au or call 1800 227 475 before June 30, 2025.
Required Documents:
- Valid Photo ID (Driver’s License or Passport)
- Proof of Address (Utility Bills or Lease)
- Updated Bank Account Statements
- Medicare Card and Tax File Number
Super Contribution and Withdrawal Rules (2025-2026)
| Age Group | Mandatory Contribution (%) | Voluntary Cap | Tax on Excess | Minimum Withdrawal (%) |
|---|---|---|---|---|
| Under 35 | 11.5% | $30,000 | 45% | N/A |
| 35–49 | 11.5% | $30,000 | 45% | N/A |
| 50–59 | 11.5% | $30,000 | 45% | N/A |
| 60–64 | 11.5% | $30,000 | 45% | N/A |
| 65–74 | 11.5% | $30,000 | 45% | 5% |
| 75+ | 11.5% | $30,000 | 45% | 6% |
Useful Tips:
- Contact your super fund to confirm your retirement income strategy.
- Use myGov portal to view updated pension eligibility.
- Keep your income and asset details regularly updated to avoid overpayment recovery issues.
FAQs – Aged Pension Reforms
Q1: Will my pension stop if I miss the revalidation deadline?
Yes, failure to submit updated documents by June 30, 2025 may lead to a temporary suspension.
Q2: Can I still work and get the Aged Pension?
Yes. With the updated Work Bonus, you can now earn up to $11,800 annually without reducing your pension.
Q3: What if my super fund doesn’t offer a retirement income strategy?
From June 1, all regulated funds are required to provide a default retirement income strategy. If yours doesn’t, report to ASIC.
Q4: Are voluntary super contributions tax-free?
No, only up to the $30,000 cap is tax-preferred. Contributions above that are taxed at 45%.
Q5: Is there help available to understand these reforms?
Yes. Contact Centrelink Financial Information Service (FIS) at 132 300.
Contact Details for Departmental Support
Conclusion of Aged Pension Reforms
The reforms to the Aged Pension and Superannuation from June 1, 2025, are a significant step in enhancing retiree financial wellbeing. While most updates offer increased support, timely compliance—especially document revalidation—is critical. Take action now to ensure continued payments and make informed decisions to optimize your long-term retirement income.