Pension deeming rates to increase payments

The Government has announced a reduction in pension deeming rates

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


    To make a comment, please register or login
    19th Feb 2013
    Of course, the reduction in the deeming rate may be good for part pensioners but since most financial institutions only pay the deeming rate, full rate pensioners and non-pensioners will be worse off. The banks will be better off! Isn't that what we all want?
    20th Feb 2013
    Yes we will be worse off being on the full pension
    11th Jul 2019
    Hi its not only Aged Pensioners who suffer from the high deeming rates. Everyone receiving centre link payments suffer the same. Hope when it changes it changes for everyone.
    Keep up the good work

    Join YOURLifeChoices, it’s free

    • Receive our daily enewsletter
    • Enter competitions
    • Comment on articles