Property-Owning Pensioners Face Cut to Support Payments Under New Rules

Property-owning pensioners in Australia may receive less government financial assistance due to an upcoming change in a key welfare payment indicator. The deeming rate, used to calculate pensioners’ social security payments based on their assets, will be updated on September 20. This change will increase the assumed rate of return on personal investments, potentially reducing the amount retirees receive.

• Pensioners in Australia may face reduced government payments.
• The deeming rate, used to assess social security payments, is changing.
• The deeming rate will increase from 1.25% to 1.75% for assets up to $66,800 (singles) and $110,600 (couples).
• Assets above the threshold will be subject to a 3.75% rate.
• The deeming rate represents the assumed return on personal investments used to calculate pension payments.