Age pensioners set to get a pay rise

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Single pensioners could be up to $804 a year better off and couples $1000 a year better off after September’s new deeming rate drop, new modelling from AMP shows.

The deeming rate change, which will be backdated to the start of the financial year, will mean single pensioners will receive a lump sum of up to $178 and couples up to $234 once the change kicks in.

Individuals will receive a maximum fortnightly pension boost of $30.92 for non-homeowners with financial investments up to $540,000, while non-homeowning couples with a maximum $670,000 in total investments could receive a fortnightly pension increase of $40.50.

Deeming applies to financial investments such as listed and unlisted shares, insurance bonds and saving and term deposit accounts, among other assets.

“Deemed income is added to a recipient’s social security assessable income from all other sources and the total is then used to calculate the rate of social security entitlement under the income test,” said AMP technical strategy manager John Perri.

The deeming rate change date will coincide with a regular scheduled increase to the Age Pension.

“Pensioners will have two reasons to smile in September with the scheduled increase to the pension coinciding with the deeming rate cuts,” said Mr Perri. “Although the changes for the vast majority of pensioners are relatively small, having some extra money in their budgets to tackle cost-of-living expenses is a positive thing.

“The pension is means tested and looks at a single or couples’ level of financial investments, income and assets, to determine how much they receive each fortnight.

“Having a good understanding of how many investments and other assets you can hold before your pension is impacted, and by how much, is a key tool to help plan for retirement.”

Are you looking forward to the deeming rate change? Will you then be eligible for the Age Pension?

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Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

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75 Comments

Total Comments: 75
  1. 0
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    That is good news. The one “missing link” to fix the pension is to increase the asset test threshold as it is too low and punishes people with small super or other savings.

    • 0
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      Blinky, when something sounds too good to be true, it always is. Think about it. This increase is just political propaganda to look good against the opposition so the senseless keep voting them in.

      A Government that wants to include the home as a pension asset.

      A Government that is thinking about providing a pension scheme against the home.

      A Government that wants all younger Australians to work till 70 and more because we all live longer than ever.

      A Government that advice all Australians should save for their retirement.

      A Government that constantly advises the pension is welfare Australians should not expect despite taking a pension himself before 70.

      A Government that is threatening to come after pensioners for their money.

      A Government that chases unfounded debt going back over 20 years with robot debt.

      A Government that wants all pensioners to be on the Cashless Card because if they can do it to some they can also do it for everyone.

      It costs more to keep politicians on the gravy train and the tax cuts for their elitist’s puppet masters than our entire welfare system.

      Now that’s Morrison’s Fair Go!

    • 0
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      no matter what you say Jackie Morrison is still far better than the alternative and the silent majority will again say so in 3 years time – Australia dodged a massive bullet/s in May

    • 0
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      Jackie, I agree 100% whatever the government gives with one hand is taken back double with the other, just watch there will be a media campaign convincing everybody not on a pension that pensioners with houses are causing all the problems.

    • 0
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      bob Menzies, Today’s Liberal Party does not have the same values and policies of Robert Menzies. He believed in unions, creating jobs, and making it possible for every Australian to own a home as well as social security for Australians.

      This Government only supports Franking Credits but look out for the home because they are after that.

    • 0
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      Ironic isn’t it that the govt won the election partly because of the Franking Credits and now they are trying to take them away. I have just been listening to a shareholder speaking to Davis Spears on Sky News, Alan Goffin , Chairman of Sharehioder’s Association and he is not a happy chappie..

    • 0
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      ray from Bondi, pensioners didn’t inflate the property market. The Government did by allowing it shonky land developers to do it. Now they aren’t accountable for those shoddy high rise apartments.

      It wants pensioners’ homes for land developers to exploit more buyers. I hope the Asian and Indian customers wake up to the scam and realise Australia is no longer a fair dinkum place any longer.

    • 0
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      I agree totally with you Jackie, you couldn’t have worded it better. This lot of buffoons we have in Government have one agenda – give to the rich and take from the poor. ScoMo and his pompous horde of merry men have no idea how the ‘real’ people live. Go and get a job he says. Yeh, right! Not too many firms want to employ anyone with any form of disability or anyone over fifty. Recent figures show that probably more than 50% of those on Newstart are over 50’s who want to work but either can’t get a job despite all efforts, or can’t due to ill health. Our great leader may be religious on Sunday’s but the rest of the week he’s just the moron who knifed his ‘mate’ in the back whilst facing the camera and saying he supported Turnbull all the way. What chance do the rest of us have.

    • 0
      0

      The Care Bear, we’re not all Drones with no intellect. Circumstances so often dictate how well off you are in retirement and trust me being a woman can have a massive detrimental effect. I should know. I started work at 14 while still at school. Finished school on the Friday, started work on the Monday. Never had a day out of work until I made the ‘unselfish’ decision to give up to look after my very ill Mother who had severe dementia and mobility issues. I did that 24/7, 365 days a year, single handedly for almost 8 years. Not an easy gig my friend. By the time Mum passed away I was so sick myself I was accessed as being able to do less than 8hrs work per week. I still did it, albeit if some of it was only voluntary work because that was all I could get. I saved hard, had my first home paid for by the age of 31. This despite the fact I started with the company age 16 but I was a WOMAN, couldn’t join Super until I was 25. The men could join straight away, the women were expected to leave, have babies and not come back. I worked in a man’s domain for much of my career, purchasing supply and blend scheduling for an oil company. Not once did I earn over $35k per year, while the guys doing the same job interstate we’re getting double that – and many of them Drones like the ones you mention. Who was doing your work while you were busy counting your cash? We weren’t all born with the same level of intellect either my friend. It doesn’t mean people are any more lazy, but it does often reduce their earning capacity. Maybe you were one of the lucky ones – your brawn saw your earning capacity increased, not your brain.

  2. 0
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    We are being conned again. What a bonus! A drop of 0.25% in the deeming rate, which will now be ONLY 3 times the cash rate. How generous can our LNP government get? Coupled with the discredited robo-debt process now to be targeted at age pensioners, why wouldn’t we all be ecstatically happy with our treatment by Centrelink?

  3. 0
    0

    I cannot see what is happening for home owning couples? Anything is good, however, and people with no home or assets are the poorest.

    • 0
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      Nor can I – we just carry on – with a mortgage, BTW….. cheaper than rent, but still – no dollars thrown that way…

  4. 0
    0

    Why do businesses and government use marketing like $55.99,$843.99 $77. 22 this is marketing ploy some people see it and think it only $9.00 when infact 9.99 is really $10.00 similar to other amounts We don’t have 1 2 or 3 cents anymore so why are they still quoting this in prices. Big bargain new car now only $34999. when in reality it is $35.000 but some people only see $34000. so what garbage is the government telling us that the pension is going to rise by $30.92 when in fact it is going up by $30.90

    • 0
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      Not true Fair Dinkum. If you pay for something that is advertised as say $9.99 with anything other than cash, you will be charged $9.99 an extra one cent its true. But if that ‘thing’ cost $9.22 and you pay cash, you will only pay $9.20 thereby saving 2c. Pay any other way and you will pay the advertised amount.

      Given the pension rise is NOT paid over the counter in cash, you will receive the full $30.92 into your bank account (if that is what the rise will be for you). And just keep in mind that that figure will NOT be a universal amoiunt because people have different amounts of assessible assets. The $30.92 will only be paid to those who meet the asset cap of $540,000 for single non-homeowners. If you have fewer assets you will get less. Likewise own your own home and you will get less, have more assets and you will get less.

  5. 0
    0

    Why do businesses and government use marketing like $55.99,$843.99 $77. 22 this is marketing ploy some people see it and think it only $9.00 when infact 9.99 is really $10.00 similar to other amounts We don’t have 1 2 or 3 cents anymore so why are they still quoting this in prices. Big bargain new car now only $34999. when in reality it is $35.000 but some people only see $34000. so what garbage is the government telling us that the pension is going to rise by $30.92 when in fact it is going up by $30.90

  6. 0
    0

    While grateful for the small rise it still won’t cover the amount that everything else is going up by.
    Plus, within a week of the increase, a letter will arrive saying that my rent will be going up by almost the same amount. 🙁

  7. 0
    0

    WOW. Great Re “lump sum of up to $178”. And for a whole year !! Just $2- less then a politician’s daily meal allowance !!

    • 0
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      Johns, It’s nothing compared to Morrison gave to himself and he hasn’t improved the economy. How good is that?

    • 0
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      Yep Jackie. It is absolutely amazing that Morrison and the other politicians gave themselves 2% pay rise. Cos they can !! And they dont have anything to spend it on cos they receive $100K p.a. or thereabouts in daily meal and travel allowances. it is sickening and now feeling quite nauseous about it all !! Morrison is not a christian although he portrays himself as one !!

    • 0
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      johnp criticises Morrison for his christian beliefs but clearly does not mind stomping all over the tenth commandment. Whatever amounts politicians and pensioners receive are irrelevant as they are incomparable with each other.

    • 0
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      Incomparable is not relevant and doesnt make it right. it starts at the top and the largesse trickles down mainly in Govt salaries, perks, plus the large companies, the upper managements etc e.g. CEOs and various levels of managements are the main original source of being uncompetitive with such as china etc. Just one example was Telstra when sol trujillo was in charge. The CEO of China Telecom received way less than 10% of his salary but was in charge of a company 100 times larger. Most of this still goes on today.

  8. 0
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    I’m confused with the increase in the pension relating to the deeming rate. All commentary has quoted assets in the $100,000’s. As I understand it an income is deemed on the basis of those assets. OK, I get that. My assets are $30,000. Do I get deeming increase, or is that asset figure too low to generate sufficient income? Can someone clear this up?

  9. 0
    0

    I’m confused with the increase in the pension relating to the deeming rate. All commentary has quoted assets in the $100,000’s. As I understand it an income is deemed on the basis of those assets. OK, I get that. My assets are $30,000. Do I get deeming increase, or is that asset figure too low to generate sufficient income? Can someone clear this up?

  10. 0
    0

    ‘Age pensioners set to get a pay rise’. I find this headline most disappointing and misleading because as a lot of articles in both newspapers; magazines and online groups have a tendency to ‘flower up’ the articles. The true headline should be something along the lines of ‘Deeming Rate Cuts to come into affect along with Full Pension rate Half yearly Rise’. I say this because its the truth. Only ‘Part Pensioners’ ; people with monies still in Investments and or Superannuation will be affected by the ‘Deeming Rate Cut’ NOT the ‘Full Age Pensioners’ who will only receive the normal six monthly increase. HOW ABOUT TELLING THE COMPLETE FACTS AND NOT GIVING THE WRONG IMPRESSIONS!

    • 0
      0

      The headline should read ‘Deeming rate cuts to come into effect reducing the level of theft by government’

    • 0
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      I agree with you Stevo…is exactly what I would say. Totally misleading headline.

    • 0
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      That’s right, stevo, completely misleading headline copying what most of the media is also doing. The focus should be on the fact that Govt is giving back only a very small part of the money they are stealing from part=pensioners using crookedly set Deeming rates.

      Also, only part-pensioners who are affected by Deeming Income Tests (around 25%?), not those affected by Assets test, will have any benefit, whereas the media is projecting the impression that all pensioners are about to benefit from these less-than-fair Deeming rate changes.

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