The Minister for Social Services has announced a reduction to the deeming rates reflecting lower returns available to income support recipients from financial investments.
From 4 November 2013 the deeming rates will be:
Deeming rates are set to reflect returns on investments available to pensioners and other income support recipients. It recognises that many pensioners and social security recipients who also rely on own-source income have been adversely affected by the global economic downturn.
Means tested part rate income support recipients paid under the income test, with financial investments mainly in term deposits, shares, managed investments and other accounts, may receive an increase in their pension payments, to reflect the reduction in their assessable income. This applies to both Centrelink and Department of Veterans’ Affairs means tested recipients.
Clients in aged care that pay income-tested fees may have lower costs as a result of the low deeming rates.