Changes to the deeming rates
15 July 2019
The deeming rates we use to assess your income are being lowered.
We use an income and asset test to work how much we can pay you. We include any deemed income in the income test. Deeming assumes that your financial investments earn a set rate of income, no matter what they really earn.
How we work out your deemed income depends on your circumstances. We apply a lower deemed rate to a certain amount of your total financial investments. Anything over that amount is deemed at a higher rate.
The lower deemed rate is 1.75%. This will drop to 1%.
The higher deemed rate is 3.25%. This will drop to 3%.
The Minister for Social Services sets these rates.
These deeming rates will change shortly. However, we’ll backdate the change to 1 July 2019, and apply the new rates from this date.
You don’t need to do anything. If you have deemed income, we’ll automatically apply the new deeming rates. You may see a change in your regular payment rate after the new deeming rates have been updated.
Read more about how we work out your deemed income, based on your circumstances.
Read more news for older Australians.
Page last updated: 25 July 2019