Australia Raises ‘Deeming Rates’ to 1.75 Percent, What It Means for Pensioners

The Australian federal government has increased the ‘deeming rate’ used to estimate income from financial assets for pensioners. This change, effective August 20, raises the deeming rate by 0.5 percent, potentially lowering pension amounts for some. The rate increases to 1.75 percent for assets up to specific thresholds for singles and couples, with higher rates for assets exceeding these limits.

• The federal government has increased the ‘deeming rate’ for pensioners.
• The deeming rate estimates income from financial assets to determine pension amounts.
• The deeming rate increased by 0.5 percent on August 20.
• The new deeming rate is 1.75 percent for assets up to $66,800 for singles and $110,600 for couples.
• Assets above these thresholds are subject to a 3.75 percent rate.