Pension deeming rates to increase payments
Note: this information is now oudated. For the most recent pension deeming rates, click here.
In a move long overdue, the Government has announced a reduction in pension deeming rates from 20 March 2013, which will see 740,000 pensioners have a few extra dollars in their pockets.
Deeming rates are used to determine a standard rate of return that pensioners earn on their investments, which in turn affects how much Age Pension is paid under the means testing rules.
The lower deeming rate will decreased by 0.5 per cent to 2.5 per cent for investments up to $45,400 for single Age Pensioners or $75,600 for a couple. For those with investments above these amounts, the rate will decreased from 4.5 per cent to 4 per cent.
But what does this mean for those on the Age Pension? The reduction in deeming rates provides an average increase of $6.60 per fortnight to those on a part Age Pension.
Find out more about deeming rates by visiting FAHCSIA.gov.au.