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Centrelink blow for 460,000 pensioners as
major change to deeming rates announced:
'Gradually return'
The government has revealed it will begin changing deeming rates for pensioners and other
Centrelink recipients. Deeming rates are the rates of return the government assumes people
earn on financial assets, including shares, superannuation and bank accounts.
They have been frozen at 0.25 per cent and 2.25 per cent, respectively, since 2020. But Social
Services Minister Tanya Plibersek has revealed this is about to change.
“As Australians begin to feel the positive impacts of inflation easing, the government will now
gradually return deeming rates to pre-pandemic settings,” she said.
“That is, to reflect rates of return that pensioners and other payment recipients can reasonably
access on their investments.”
How do deeming rates work?
They impact means testing for Centrelink payments, including the Age Pension, JobSeeker and
parenting payments.
For singles, the first $64,200 of your financial assets has a deemed rate of 0.25 per cent.
Anything over $106,200 is deemed to earn 2.25 per cent.
