The Minister for Families and Social Services has announced that deeming rates used by Government Agencies to determine retirees’ incomes are to be reduced with retrospective effect from 1 July.
The Minister, Senator Anne Ruston said the changes would benefit about 630,000 age pensioners and almost 350,000 people receiving other payments.
“The lower deeming rate will decrease from 1.75 per cent to one per cent for financial investments up to $51,800 for single pensioners and $86,200 for pensioner couples,” Senator Ruston said.
“The upper deeming rate will be cut from 3.25 per cent to three per cent for balances over these amounts,” she said.
“It will mean more money in the pockets of older Australians.”
She said that under the new rates, age pensioners whose income was assessed using deeming would receive up to $40.50 a fortnight for couples, or $1,053 extra a year, and $31 a fortnight for singles, or $804 a year.
She said the extra money would start flowing into peoples’ bank accounts from the end of September, in line with the regular indexation of the pension, and would be backdated to 1 July.
“While 75 per cent of aged pensioners are not affected by deeming, this decision recognises that it is an important issue for those who are,” Senator Ruston said.
“Changes to the deeming rate will also benefit people receiving other income-tested payments including the Disability Support Pension and Carer Payment, and income support allowances and supplements such as the Parenting Payment and Newstart,” she said.
