Changes to deeming rates

Changes to deeming rates will benefit more than 740,000 pensioners

Changes to deeming rates
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Changes to deeming rates which take effect from 4 November 2013 will benefit more than 740,000 pensioners and may mean you now qualify for an Age Pension.

Social security deeming rates will decrease from 2.5 to 2 percent for those with financial investments up to $46,6000 for single pensioners, $77,400 for pensioner couples, with this figure halved to $38,700 for each eligible member of a couple. For those with balances over these amounts, the upper deeming rate will decrease from 4 to 3.5 percent.

Deeming rules are applied to income received on financial investments to assess eligibility for a pension. The reduction in assessable income resulting from reduced deeming rates may mean that those who had previously just missed out on an Age Pension, Disability Support Pension or Carer Payment may now qualify. To confirm if you are now eligible, refer to the income limit tables.

Reduction in income may also mean that you now qualify for certain allowances, such as Newstart Allowance, which are subject to the income test.

Rates were last changed in March 2013 and the most recent reduction is in response to the reduced returns currently available to pensioners.

Deeming rates reflect the rates of return which people receiving income support payments can earn from their financial investments. If income support recipients earn more than these rates, the extra income is not assessed.

For more information on deeming, visit the Department of Social Services


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    30th Oct 2013
    Well that is good news even though the 3.5% is what many can obtain these days.
    30th Oct 2013
    Bet that won't last for long now.....Banks will be very quick to lower their rates to match
    30th Oct 2013
    IF you are 'earning' 77k a year, what the HELL are you doing on an aged pension. It is suppose to be for the poor not for investors. WTF?
    30th Oct 2013
    Read the article again, sunshine. And get your facts straight about deeming before making any more knee jerk reactions. Just to help you and give you a starting point. $77400 is NOT earnings.
    Nan Norma
    30th Oct 2013
    Well its bad news as far as I'm concerned, if the banks lower their rates, which they will. If you are asset tested it's really bad news. You lose 75c every week for each $1000 but you won't earn that much in bank interest, plus, if your life insurance, which you pay for, has a cash value, you will be losing money. And don't forget inflation. When you earn a dollar Centrelink lets you keep half. But at 3.5% you earn next to nothing and still have to gave half to centrelink.
    30th Oct 2013
    I think someone at 'Choices' needs to fully explain deeming. Seems a lot of readers don't understand.
    3rd Nov 2013

    Well, I keep a little money in the bank for emergencies - Thats' financial investment on sorts! Any money in savings &/or term deposits.
    4th Nov 2013
    it would be good news if anybody could get it. Personally I think it's a cop out for banks. If one was to get 2% one would need a lot of money many thousands in fact to even earn the $50 per week one is supposed to be allowed to earn.
    Get real government !!
    13th Oct 2014
    I am wondering about how the government deems YOUR car. I am told that they add the value of your car into the total assets. Is this true? and if you have a this added too? Hope someone can fill me in.
    I have a very old car (1990) and I am wondering if it is a good idea for me to buy a better one before I retire in 12 months time.....Or if it really doesn't make any difference.
    13th Oct 2014
    Good question Finn because when I was lcky enough to have a new car given to me I told Centrelink and then in 2004 accoding to them my car was worth nearly as much as it was brand new so I hollered long & loud because they alsohad it as belonging half each to my hisband & me. My husband had his own carwhich they did not take into account he had sold in 1998 & they had been told. Then in 2005 I was blinded in one eye & let my licence lapse so I sold my car my husband had sold his also so we bought another, which we didn't report to them now we have bought another which once more they will not be told unless something goes wrong with the system we are telling them nothing in future. I'd do what I wanted now before the horrible fact of reporting when you have a bath comes in.
    13th Oct 2014
    Well Unicorn I have never had any trouble getting the value of cars reduced in fact several times I have been asked if I wanted to reduce the value of stuff, even the value of personal effects. (My cars are 1996 and 1999 so not new). When they suggest a reduction I make a note of it and to whom I spoke, for future reference.
    24th Sep 2015
    I am on a disability support pension and have a allocated pension that was done in May 2014 and safe under the grandfather clause, or so i thought. We booked a long overdue overseas trip lasting 14 weeks, i thought my pension would just stop after 6 weeks and recommence when i got back and everything would be the same, well that's what the centrelink people told me . NOT SO, on return my pension was reduced by 66% and now comes under the NEW deeming rates. This seems totally unfair and discriminates against disabled people saying you are only allowed to go OS on holidays for less that 28 days in a 12 month period or we will penalise you for the rest of your life. I was advised by my super company to lodge an appeal with Centrelink using the "review a decision" form. Has any one else experienced this and have some advise for me?
    5th Sep 2019
    The for more information on deeming visit department of social services (above)doesn`t open says NOT FOUND!(DOH) anyone know when this is due to kick in???

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