Changes to the deeming rate
28th October, 2013
At least 4,000 Wide Bay Age Pensioners and other Centrelink pension recipients will benefit from a reduction in deeming rates from 4 November 2013, Federal Member for Wide Bay, Warren Truss said.Mr Truss welcomed the reduction, which follows his calls for the former Government to cut the deeming rate after cuts to official interest rates were made by the Reserve Bank.
The pension deeming rate will fall from 2.5 per cent to 2 percent for the first $46,600 of financial investments for single pensioners and the first $77,400 for couples.
The upper deeming rate will be reduced from 4 per cent to 3.5 per cent for amounts over those thresholds.
The deeming rates are used to determine how much pensioners receive under the means testing rules.
The changes mean that a single Age Pensioner will be able to invest up to $135,857 before losing some of their pension if their only source of income is from financial investments.
Age Pensioner couples will be able to invest up to $238,200 before losing some of their pension if their only source of income is from financial investments.
“Some pensioners will now receive a higher Age Pension, and others will now qualify for the Age Pension for the first time.”
