Deeming rates a rip off

The Meeting Place > Government & Centrelink > Deeming rates a rip off

4 yrs ago

Deeming rates were brought in by Morrison in 2016 and have never been lowered and have robbed MANY pensioners over the years even though they have been written to for an explanation -- but nothing has been done and in most cases, not even a reply was given.

Note this letter was written in 2016

https://scoa.asn.au/wp-content/uploads/2016/09/20160816-Scott-Morrison-re-age-pension-deeming-rates.pdf

8 comments

McDaddy

4 yrs ago

Deeming rates were not brought in by Scott Morrison. They were brought in to "force" Pensioners to seek a better return on their money than sticking it in a Bank account. When setting them they look at the whole market, shares, cash, super, etc etc.

Daisy

4 yrs ago

They were brought in to encourage seniors to take greater risks with their life long savings???

Scott Morrison IS responsible for them. And it IS highway robbery!!!...and UNFAIR !!!

Suze

4 yrs ago

Deeming Rates were introduced in 1991 by Paul Keating the then Prime Minister.

http://guides.dss.gov.au/guide-social-security-law/4/4/1/10

McDaddy

4 yrs ago

A lot of Pensioners have their money in Super these days getting a higher return than the deeming rates. It may also encourage Pensioners to co-fund their retirement, rather than keep it all and live off the Pension.

PlanB

4 yrs ago

Darn, right they were brought in by Morrison McDaddy -- in 2016!!

Deeming rates are supposed to be for what you are able to get at a BANK not putting your money into unsafe places -- this is daylight robbery and needs to be stopped, Morrison is a sneaky crooked scum!

All these years Pensioners have been robbed blind eve if you have very little in the back -- as the higher rate --that you have NO hope of getting -- starts from $0 -- IF you are really lucky you may get 0.5% on whatever you have in the bank -- no where near 3.25% even on a term deposit!

McDaddy

4 yrs ago

Well before 2016

On 1 July 1996 the deeming legislation was extended to include the following financial investments:

bank, building society and credit union accounts and term deposits, managed investments, loans and debentures, and listed shares and securities.

McDaddy

4 yrs ago

A single Pensioner can have app $160k in the Bank and get the full pension, app $260k for a couple. If they have little other assets other than their house, a car etc. So they can get app $24k PA for life and app $36k for couples for life and still have that much to invest or use for their retirement.

Daisy

4 yrs ago

From the Sydney Morning Herald, 21/6/19:

“Almost a million retirees are being short-changed by the Morrison government as it fails to increase their fortnightly payments to reflect the hit long-term savings are taking because of falling interest rates.

Pensioner groups are accusing the government of using them to save money by deliberately sticking with a decision made in 2015 by then-social services minister Scott Morrison that assumes high returns on investments such as term deposit accounts.”

Suze

4 yrs ago

Deeming Rates were introduced in 1991 by Paul Keating the then Prime Minister.

http://guides.dss.gov.au/guide-social-security-law/4/4/1/10

McDaddy

4 yrs ago

Only imacting on a smaller section of those 1 million retirees in reality. Australians need to get into the mindset of co funding their retirement by using their capital, not increasing wealth in their later years to give the kids. Increasing the pension rate itself is a sperate discussion to deeming rates. Those of Working Age, who are funding the Pension, don't want to pay a lot of tax, in fact the tax collected by Gov is about to be lowered, so less Gov revenue to fund Pensions.

Suze

4 yrs ago

Deeming Rates were introduced in 1991 by Paul Keating the then Prime Minister.

http://guides.dss.gov.au/guide-social-security-law/4/4/1/10

Daisy

4 yrs ago

Suze,

We are not talking about when they were brought in. We are talking about when it was decided to keep them way above the reality of bank interest received. In effect, the government says we all have more income than we actually have.

Ny19

I agree that there needs to be a change.

Are you aware that the report says that both sides of government have consistently rejected an independent benchmark that would see deeming rates reviewed every three months.

Daisy

4 yrs ago

Yes, I think Labor would have done well in the election if they had countered the franking credit policy with a promise to do something about the deeming rates which affects many more people who on the whole are less well off than non pensioners who are big shareholders. I have read somewhere that Labor has been trying unsuccessfully in parliament over recent years to make the deeming rates fairer but with no success. Will try to chase up what I read in Hansard but no time to do it now.

McDaddy

4 yrs ago

The Banks were the 1st to jump, they once offered deeming accounts that mirrored the gov rates and thresholds, they haven't for a while now.

PlanB

4 yrs ago

Yes Suze they done by Keating --- were but they used to be changed and the last ones were done by Morrison in 2016 -- when he took it to 3.25% which was too darn high and has not been changed since and is now a real rip off they used to be changed so that people could get that rate at the Bank --

Thats what we have been talking about here sorry if that was not made clear

Also sorry if I got McDaddy wrong and maybe he meant that they were brought in by Keating? I Apologize.

Deeming rates a rip off

Preview your comment