Aged pensioners will soon be able to earn thousands more dollars each year without impacting their payments.
The pension work bonus will be doubled to $600 a fortnight, meaning older Australians can earn an extra $7800 a year.
It will also be easier for seniors to get cheaper access to everyday items.
The income threshold for the Commonwealth Seniors Health Card will increase to $90,000 for singles and $144,000 for couples.
Legislation underpinning the changes cleared the Senate on Wednesday night and is expected to be endorsed by the Labor-controlled lower house when parliament next sits in October.
Greens senator Janet Rice said the changes would allow pensioners to deal with the rising cost of living.
“We need to be getting measures through this parliament that are going to enable pensioners to deal with the cost of living,” she said.
“Here is a way of doing it.”