Pension boost is unlikely to help many older Australians

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It took the Government a long time to come to the party on changing deeming rates, but Freedom of Information (FOI) documents reveal that those changes will only deliver a paltry windfall to most of those affected by the changes.

At the time, the Government was spruiking that its changes would deliver an extra $800 a year to affected pensioners, but the FOI documents sourced by The New Daily show that only a handful of people would receive anywhere near this amount of money.

Most single pensioners with investments that attracted deeming rates would be just $5 a week better off with the new deeming rates, or $249 a year. The average boost delivered for couple is $3 a week, or just $156 a year.

According to the FOI documents, nearly half of pensioners who receive the couples rate will secure less than $130 a year.

The data shows that less than one per cent of the one million pensioners who are better off under the changes will receive the full $800 a year boost touted by government ministers at the time the changes were announced.

Worse still, the number of pensioners on the couples rate who will secure this level of extra Age Pension payment will total just 191 couples across Australia.

Also, because the payment is being backdated to July, it may appear more generous in the first payment, due this month, but will then reduce to the lower payment that will be paid fortnightly.

Many older Australians, who rely largely on the Age Pension to fund the majority of their retirement income, believe that deeming rates are unfair. This is because the actual returns on savings accounts and term deposits are often lower than the Centrelink deeming rates. This means that they are deemed to be earning more income from their savings than they actually are and, as a result, their Age Pension payment is reduced.

Do the deeming rate changes affect your pension payment? If so, how much extra are you expecting per fortnight? Has the Government overpromised and underdelivered in this area?

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Written by Ben

72 Comments

Total Comments: 72
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    As a home-owning couple with a small amount of super, we’re nearly on the full pension. This change gives us a combined extra $20 a fortnight.
    Not a lot but it helps. Means our deemed income is now almost zero.

  2. 0
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    So clear, it’s it funny! So Who will get anything? And why can they tell us exactly what we are getting? Specially pensioners that are renting!!!

  3. 0
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    This issue is not worth the time or money that it’s taking up, a complete furfy, not worth a cracker!

  4. 0
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    Deeming was never really that big of an issue, there are better ways to help.

  5. 0
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    Typical betrayal of Pensioners by this miserly surplus at all costs obsessed government. To think we voted for this garbage makes my blood boil. Wake up fellow Pensioners we are being dudded big time.

    • 0
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      you have not been betrayed … as the good book says “for whatever a man sows, this he will also reap”. Choices have consequences.

    • 0
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      Your choices or the choices of others, given that we live in a country where a significant percentage thrive on inflicting harm on others to prop up their own failed egos……???

      Most such are found in positions of ‘authority’ – in a nation that generally does not require ‘authority’ but for the majority requires genuine governance of and by their servants …….

    • 0
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      point taken TREBOR but in this instance old mate Red said “we voted” so it would be his choice rather than the choices that voted differently.

  6. 0
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    Some one voted the L.N.P.in what did you expect.It is on the cards they will lie there way in at the next election so just get used to it.

    • 0
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      floss – ANY party in government will be no better. Labor will not be the panacea to do anything far better.

    • 0
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      So true – Labor have ‘bigger fish’ to fry – their Great Equalisation Revolution, meaning continued policies of exclusion and of preference for specified groups in order to attain ‘equality’, is far more important than mere proper governance of all equally….. (read that again and weep)…

      Just like ‘controlling male v female violence in society as a first step in controlling violence throughout society’ – such a ‘revolution’ NEVER gets beyond Stage One (in 27 years it has in fact gone backwards with an escalation in violence BETWEEN women and men, and then via government agency intrusion, in many ways), but becomes calcified at that stage – therefore it is fundamentally impossible to ever attain genuine Equality – just Preference as the established law of the land….

      Never going to work …..

    • 0
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      Please, TREBOR, not that boring BS again?

      But I agree, SunnyOz, Labor are as useless as the LNP at the moment.

      Maybe our problem lies in that the major political Party leaders are always old, white men? But what Party in their right mind would dare to try to have a female leader elected after the persecution of Prime Minister, Julia Gillard?

      None of them have the guts, but they do have the balls. Trouble is, balls are soft, weak & easily injured. What they need is some vaginas! They’re tough as & they can truly deliver!

  7. 0
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    Yep, Both LNP and Labor are like the nazis. LNP got into power by lying, cheating, bullying, conniving !! Labor is like the guards in hogans heroes; bumbling idiots who lost the election by not being able to explain their objectives clearly etc.

    • 0
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      “Like the nazis”. How many Australians have been transported to Death Camps and killed to date. Silly comparisons like this are an insult to the memories of people who suffered under the Nazi regime.

    • 0
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      what an utterly ignorant comment to compare labor and liberal to nazis –

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      Labor lost the election for many reasons, Clive Palmer and his misleading ads, the LNP lies about the electric cars, people’s utes being taken off them etc, their ads, “The bill you can’t afford”, but most of all because of the stupidity and ignorance of the Australian voters who changed their minds on election day. They did this because they didn’t bother to find out who their Federal member was and just voted for the first person at the top of the voting paper, This was the explanation given by people who were interviewed as to who they voted for and why they changed their minds from the answer given to previous polsters. These would also probably be the people who will complain the loudest now about the govt they helped vote back in.

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      Nazis were way more capable & organised than our idiot politicians – trouble is the Nazis were genocidal fascists. If only our parliament had half the brains & resolve of the Nazis. The only thing our government has controlled well is the propaganda machine (with the help of the Murdochs & Alan Jones’s from the media AND the people duped into believing they are watching “The News” not “the opinions”).

      But I do consider that the Global government (Capitalism) is moving steadfastly towards Fascism. And with all that surveillance!!! Who will dare step out of line or speak up?

      Regarding Labor’s demise at the last election, you’re spot on, Misty. I saw a Tweet from Josh Frydenberg saying that Labor, the Unions & the Greens will introduce Death Duties. At the end of the tweet he asks “share with all your friends”. I wish there were legal consequences for politicians who blatantly lie. Instead, he’s been promoted, like a good soldier for the cause. The irony is he’s Jewish.

  8. 0
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    So the only ones that will benefit are the ones that are benefiting now, like politicians.

  9. 0
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    The government is absolutely hypocritical about DEEMING RATES on term deposits, they have no intention on looking after older Australians whether Full or Part Pensioners.

    • 0
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      That’s a big yes. There is no incentive to invest for any future expenses that may or will occur

    • 0
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      there is no incentive for the government to change approach to pensioners, few will change their votes regardless what actions the government takes

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      They keep voting for the LNP because they’re afraid of Death Duties & Labor’s so-called poor ability to manage the economy. Even though it was a lie by Frydenberg about Death Duties & the fact this government has tripled debt while preaching small government & trickle-down economics. (The Govt only talks about a surplus in regard to the current account, not Australia’s overall debt, which has tripled under their watch. No matter, it still works well for voters who have already proved they are easily duped by these charlatans).

      Labor actually saved Australia from Recession during the GFC while Turnbull (in Opposition), screeched that Austerity was the only way the Australian Share market would keep afloat. Yes, he actually talked down our economy during a time of potential economic disaster. I noted it at the time for posterity – Malcolm Turnbull: a traitor to Australia. Anyone who knows anything about the Share Market knows that confidence is a crucial element, yet he actively undermined confidence in the market.

  10. 0
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    Well I had a small increase for about a month or two and then or the last two payments a big drop in my pension back to just a few dollars above what I was receiving prior to the so called increases. So since my wife passed on I dropped from $800 to $194 now. Because most of my investments a set I’m now doing part time work which makes up half of what I lost and that is seasonal. So much for a happy retirement. Deeming rate changes appear to have made me worse off.

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