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