The income we deem you received from your assets

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This page can be used as a ready reckoner to work out the amount of deemed income that results from applying the deeming rules to your financial assets.

The deeming rates published in this page may have been out-of-date between 1 May 2020 and 3 June 2020. These rates have been corrected.

The rates quoted are current from 20 March 2021 to 30 June 2021.

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What is Deeming?

Deeming is the method DVA uses to calculate income from your financial assets. Deeming assumes that any money you have invested in financial assets is earning a particular amount of income regardless of the actual amount earned.

Refer to Deeming and Financial Assets for more information on financial assets.

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Why do we have Deeming?

Deeming is a simple, fair way to assess your income. It is used for assessing income from financial assets only, because the income generated by some of these assets is not always simple to calculate.

The deeming rates are monitored to ensure they reflect appropriate rates of return. Any future change in the rates will be timed to coincide with the March and September pension indexation increases and any other time if the financial market fluctuates significantly.

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How does deeming work?

There are two deeming interest rates, a high deeming rate and a low deeming rate. The deeming rate that is applied depends upon the amount of financial assets you have. The low deeming rate applies up to what is called a deeming threshold. Everything above this threshold is deemed to earn the higher deeming rate. The deeming thresholds are different for singles and couples.

The deeming thresholds are as follows:

  • For singles - Amounts up to $53,000 are deemed to earn the lower deeming rate of 0.25%. That portion over $53,000 is deemed to earn the higher deeming rate of 2.25%
  • For couples - Amounts up to $88,000 (combined) are deemed to earn the lower deeming rate of 0.25%. That portion over $88,000 is deemed to earn the higher deeming rate of 2.25%.

Your deemed income is worked out as follows:

The values of your financial assets are added together

The first $53,000 ($88,000 for couples) is deemed to earn the lower deeming rate of 0.25%

That portion of financial assets over $53,000 ($88,000 for couples) is deemed to earn the higher deeming rate of 2.25%.

Example 1: The following is an example of a deeming calculation for a couple:

Step 1 Total financial assets $174,188  
Step 2 First $88,000 of total at 0.25% interest $88,000 x 0.0025 = $220.00
Step 3 Remaining balance of total $174,188 - $88,000 = $86,188
Step 4 Balance of total at 2.25% interest $86,188 x 0.0225 = $1,939.23
Step 5 Add answer at step 2 and step 4 $220.00 + $1,939.23 = $2,159.23
Step 6 Divide your answer from step 5 by 26 to convert annual income to fortnightly income $2,159.23 / 26 = $83.05
  Fortnightly deemed income Combined $83.05
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How to use the ready reckoner

If you want to estimate your deemed income from your total financial assets, go to the appropriate ready reckoner (i.e. singles, couples or illness separated couples) and look up the amount of your financial assets in the column titled 'Total Financial Assets'. Your deemed income for pension purposes is in the column titled 'Deemed Income per Fortnight', directly to the right of your financial assets amount.

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Deemed income estimator for singles

Assets test for home owner illness separated couples, estimating your rate of pension based on your total assets
Total Financial Assets Deemed Income per Fortnight Total Financial Assets Deemed Income per Fortnight Total Financial Assets Deemed Income per Fortnight
$1,000 $0.10 $46,000 $4.42 $371,600 $280.81
$2,500 $0.24 $47,500 $4.57 $383,400 $291.02
$4,000 $0.38 $49,000 $4.71 $395,200 $301.23
$5,500 $0.53 $53,000 $5.10 $407,000 $311.44
$7,000 $0.67 $64,800 $15.31 $418,800 $321.65
$8,500 $0.82 $76,600 $25.52 $430,600 $331.87
$10,000 $0.96 $88,400 $35.73 $442,400 $342.08
$11,500 $1.11 $100,200 $45.94 $454,200 $352.29
$13,000 $1.25 $112,000 $56.15 $466,000 $362.50
$14,500 $1.39 $123,800 $66.37 $477,800 $372.71
$16,000 $1.54 $135,600 $76.58 $489,600 $382.92
$17,500 $1.68 $147,400 $86.79 $501,400 $393.13
$19,000 $1.83 $159,200 $97.00 $513,200 $403.35
$20,500 $1.97 $171,000 $107.21 $525,000 $413.56
$22,000 $2.12 $182,800 $117.42 $536,800 $423.77
$23,500 $2.26 $194,600 $127.63 $548,600 $433.98
$25,000 $2.40 $206,400 $137.85 $560,400 $444.19
$26,500 $2.55 $218,200 $148.06 $572,200 $454.40
$28,000 $2.69 $230,000 $158.27 $585,750 $466.13
$29,500 $2.84 $241,800 $168.48 $607,150 $484.65
$31,000 $2.98 $253,600 $178.69 $628,550 $503.17
$32,500 $3.13 $265,400 $188.90 $649,950 $521.69
$34,000 $3.27 $277,200 $199.12 $671,350 $540.21
$35,500 $3.41 $289,000 $209.33 $692,750 $558.73
$37,000 $3.56 $300,800 $219.54 $714,150 $577.25
$38,500 $3.70 $312,600 $229.75 $735,550 $595.76
$40,000 $3.85 $324,400 $239.96 $756,950 $614.28
$41,500 $3.99 $336,200 $250.17 $778,350 $632.80
$43,000 $4.13 $348,000 $260.38 $800,250 $651.75
$44,500 $4.28 $359,800 $270.60 $2,454,596 $2,083.40
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Deemed income estimator for couples

Assets test for home owner illness separated couples, estimating your rate of pension based on your total assets
Total Financial Assets Deemed Income per Fortnight Total Financial Assets Deemed Income per Fortnight Total Financial Assets Deemed Income per Fortnight
$1,000 $0.10 $55,200 $5.31 $400,000 $278.46
$2,600 $0.25 $56,700 $5.45 $420,800 $296.46
$4,200 $0.40 $58,200 $5.60 $441,600 $314.46
$5,800 $0.56 $59,700 $5.74 $462,400 $332.46
$7,400 $0.71 $61,200 $5.88 $483,200 $350.46
$9,000 $0.87 $62,700 $6.03 $504,000 $368.46
$10,600 $1.02 $64,200 $6.17 $524,800 $386.46
$12,200 $1.17 $65,700 $6.32 $545,600 $404.46
$13,800 $1.33 $67,200 $6.46 $566,400 $422.46
$15,400 $1.48 $68,700 $6.61 $587,200 $440.46
$17,000 $1.63 $70,200 $6.75 $608,000 $458.46
$18,600 $1.79 $71,700 $6.89 $628,800 $476.46
$20,200 $1.94 $73,200 $7.04 $649,600 $494.46
$21,800 $2.10 $74,700 $7.18 $670,400 $512.46
$23,400 $2.25 $76,200 $7.33 $691,200 $530.46
$25,000 $2.40 $77,700 $7.47 $712,000 $548.46
$26,600 $2.56 $79,200 $7.62 $732,800 $566.46
$28,200 $2.71 $80,700 $7.76 $753,600 $584.46
$29,800 $2.87 $82,200 $7.90 $774,400 $602.46
$31,400 $3.02 $88,000 $8.46 $795,200 $620.46
$33,000 $3.17 $108,800 $26.46 $816,000 $638.46
$34,600 $3.33 $129,600 $44.46 $836,800 $656.46
$36,200 $3.48 $150,400 $62.46 $857,600 $674.46
$37,800 $3.63 $171,200 $80.46 $880,500 $694.28
$39,400 $3.79 $192,000 $98.46 $904,300 $714.88
$41,000 $3.94 $212,800 $116.46 $928,100 $735.47
$42,600 $4.10 $233,600 $134.46 $951,900 $756.07
$44,200 $4.25 $254,400 $152.46 $975,700 $776.66
$45,800 $4.40 $275,200 $170.46 $999,500 $797.26
$47,400 $4.56 $296,000 $188.46 $1,023,300 $817.86
$49,000 $4.71 $316,800 $206.46 $1,047,100 $838.45
$50,600 $4.87 $337,600 $224.46 $1,070,900 $859.05
$52,200 $5.02 $358,400 $242.46 $1,095,000 $879.90
$53,700 $5.16 $379,200 $260.46 $3,762,596 $3,188.40
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Deemed income estimator for illness separated couples

Assets test for home owner illness separated couples, estimating your rate of pension based on your total assets
Total Financial Assets Deemed Income per Fortnight Total Financial Assets Deemed Income per Fortnight Total Financial Assets Deemed Income per Fortnight
$1,000 $0.10 $53,800 $5.17 $446,400 $318.62
$2,600 $0.25 $55,400 $5.33 $472,000 $340.77
$4,200 $0.40 $57,000 $5.48 $497,600 $362.92
$5,800 $0.56 $58,600 $5.63 $523,200 $385.08
$7,400 $0.71 $60,200 $5.79 $548,800 $407.23
$9,000 $0.87 $61,800 $5.94 $574,400 $429.38
$10,600 $1.02 $63,400 $6.10 $600,000 $451.54
$12,200 $1.17 $65,000 $6.25 $625,600 $473.69
$13,800 $1.33 $66,600 $6.40 $651,200 $495.85
$15,400 $1.48 $68,200 $6.56 $676,800 $518.00
$17,000 $1.63 $69,800 $6.71 $702,400 $540.15
$18,600 $1.79 $71,400 $6.87 $728,000 $562.31
$20,200 $1.94 $73,000 $7.02 $753,600 $584.46
$21,800 $2.10 $74,600 $7.17 $779,200 $606.62
$23,400 $2.25 $76,200 $7.33 $804,800 $628.77
$25,000 $2.40 $77,800 $7.48 $830,400 $650.92
$26,600 $2.56 $79,400 $7.63 $856,000 $673.08
$28,200 $2.71 $81,000 $7.79 $881,600 $695.23
$29,800 $2.87 $82,600 $7.94 $907,200 $717.38
$31,400 $3.02 $88,000 $8.46 $932,800 $739.54
$33,000 $3.17 $113,600 $30.62 $958,400 $761.69
$34,600 $3.33 $139,200 $52.77 $984,000 $783.85
$36,200 $3.48 $164,800 $74.92 $1,009,600 $806.00
$37,800 $3.63 $190,400 $97.08 $1,037,000 $829.71
$39,400 $3.79 $216,000 $119.23 $1,063,800 $852.90
$41,000 $3.94 $241,600 $141.38 $1,090,600 $876.10
$42,600 $4.10 $267,200 $163.54 $1,117,400 $899.29
$44,200 $4.25 $292,800 $185.69 $1,144,200 $922.48
$45,800 $4.40 $318,400 $207.85 $1,171,000 $945.67
$47,400 $4.56 $344,000 $230.00 $1,197,800 $968.87
$49,000 $4.71 $369,600 $252.15 $1,224,600 $992.06
$50,600 $4.87 $395,200 $274.31 $1,251,500 $1,015.34
$52,200 $5.02 $420,800 $296.46 $4,846,969 $4,126.80
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