National Seniors Australia says that if interest rates are cut by the RBA tomorrow this will increase the unfairness on age pensioners, and is calling for deeming rates to be linked to the cash rate. National Seniors Australia has been campaigning for reform to the Age Pension deeming system –… Read More »Another interest rate cut will increase unfairness of deeming on pensioners
Written by Peter Martin, Crawford School of Public Policy, Australian National University. Treasurer Josh Frydenberg has cut the deeming rate for large investments from 3.25% to 3%, and for smaller ones from 1.75% all the way down to 1%, backdated to the start of July. But what exactly is a… Read More »They’ve cut deeming rates, but what are they?
The Government has cut the age pension deeming rates, following a campaign calling for cuts to the “Pensioner Tax”. Over the weekend the Government announced the lower deeming rate – for financial assets up to $51,800 – would be cut from 1.75% to 1.0%. The higher deeming rate – financial… Read More »Government cuts deeming rates to 1.0% and 3.0%
Written by Peter Martin, Crawford School of Public Policy, Australian National University. Now it’s the Coalition that’s being accused of a “retiree tax”. As interest rates have come down over the past four years, the rate that retirees are “deemed” to have earned for the purpose of the pension income… Read More »Deeming rates explained. What is deeming, how does it cut pensions, and why do we have it?
National Seniors has called out the Coalition for an “unfair” and “covert” policy to boost the Budget bottom line at the cost of pensioners, with what it’s called a “pensioner tax” through high deeming rates. National Seniors says keeping age pension deeming rates high is a “pensioner tax”, and is… Read More »Seniors accuse Coalition of deeming rates “pensioner tax”
There are renewed calls for a cut to the age pension deeming rates, following the recent interest rate cut by the RBA, which the Government is reportedly considering. The deeming rate is used to assess income from financial assets, and is currently either 1.75% or 3.25%, depending on the level… Read More »Deeming rate at 3.25% “completely unfair” to pensioners: Labor
It is “almost impossible” to find a term deposit matching the age pension deeming rates, and so the rates should be cut to bring them back in line with interest rates, says a seniors organisation. Advocacy organisation National Seniors Australia has called for the age pension deeming rate to be… Read More »Deeming rates should be brought in line with interest rates: Seniors
The Minister for Social Services, Scott Morrison, has announced a decrease in the age pension deeming rates.
“The lower deeming rate will decrease from 2 per cent to 1.75 per cent for financial investments up to $48,000 for single pensioners and allowees, $79,600 for pensioner couples and $39,800 for each member of an allowee couple,” said Mr Morrison.
The upper deeming rate will also decrease from the current 3.50% to 3.25%. Both the decrease in the deeming rate and an indexation increase to the age pension will apply from 20 March.