Deeming rates for pensioners easedSocial security deeming rates will be lowered from 4 November.
The deeming rate will decrease to 2 per cent from 2.5 per cent for financial investments up to $46,600 for single pensioners and allowees; $77,400 for pensioner couples and $38,700 for each member of an allowee couple.
The upper deeming rate will decrease to 3.5 per cent from 4 per cent for balances over these amounts.
Minister for Social Services, Kevin Andrews said deeming rules were a central part of the social security income test, used to assess income from financial investments for social security and Veterans’ Affairs pension/allowance purposes.
“This announcement means that part-rate pensioners and allowees will have less income assessed from their investments and receive a boost in Government income support,” Mr Andrews said.
“Returns available to pensioners and other allowees have decreased since deeming rates were last changed, in March.”
He said the announcement brought the deeming rates in line with available financial returns.
Mr Andrews said deeming rates reflected the rates of return that people receiving income support payments could earn from their financial investments. If income support recipients earned more than these rates, the extra income was not assessed.
Payments affected by the deeming rates include means tested payments such as the Age Pension, Disability Support Pension and Carer Payment, income support allowances and supplements such as the Parenting Payment and Newstart, paid by the Department of Human Services and the Department of Veterans' Affairs.
For more information on deeming see this PS News link.
Edition 385, 29 October 2013