Pension deeming rates under review

“The government is balancing the budget on the backs of pensioners”

Deeming rates are set to be slashed after years of inaction by government. part-pensioners who have been stung by high deeming rates since 2015 may get some relief as the government finally prepares to review the current rates.

Minister for Social Services Anne Rushton has asked for departmental advice on cutting the deeming rate to better reflect the current very low rate environment.

The current deeming rate for assets over $51,200 is 3.25 per cent for single pensioners.

The top term deposit rates are now in the ballpark of around 2.20 per cent.

National Seniors spokesperson Ian Henschke said the Centrelink deeming rate needs to be cut by 1.25 per cent to reflect interest rate cuts on savings accounts and term deposits over recent years.

“To leave the (deeming) rates unchanged for more than four years while there has been five interest rate drops … shows the government is balancing the budget on the backs of pensioners.”

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