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Deeming rate changes now benefiting Income Support recipients

On 14 July 2019, the Government announced reductions to deeming rates, with the changes backdated to 1 July 2019.

Deeming is the method the government uses to estimate income from financial assets. It can affect how recipients of income support payments, such as Age Pension and Service Pension, have their financial investments assessed for means testing purposes.

Lowering the deeming rates means that income support recipients with financial investments, whose payments are reduced by deeming, will be financially better off.

The new rates are:

  • Lower rate: 1.0% (previously 1.75%)
  • Higher rate: 3.0% (previously 3.25%)

The low rate is used for financial investments up to $51,800 for single pensioners, and $86,200 for pensioner couples. The higher rate is used for balances over these amounts.

DVA Factsheets listing deeming rates will be updated to reflect the new rates on 20 September 2019.

Many income support recipients affected by deeming have already had their payment amount reassessed, with the remaining reassessments to be completed by the end of September 2019.

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