Deeming Rates

Deeming rates explained. What is deeming, how does it cut pensions, and why do we have it?

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?

Deeming rates for age pension to decrease from 20 March

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.

Read More »Deeming rates for age pension to decrease from 20 March