Centrelink Deeming Rates to Determine Pension Eligibility Not Moved Since 2010

Pension Eligibility

Centrelink Deeming Rates
To Determine Pension Eligibility
Not Moved Since 2010

Retirees are losing financial firepower in their Age Pension payments, with Centrelink’s Deeming Rates failing to follow falling Interest Rates.

Some advisers say the lack of action on Deeming is a “Government Cash Grab”, but there are strategies people can use to reduce the impact.

Deeming is used for the Age Pension Income Test and assumes a person’s financial investments (such as term deposits and savings accounts) earn a certain rate of income, regardless of what they really do earn. The current Deeming Rates (at 3 per cent then 4.5 per cent once Financial Assets exceed $45,400 for a single and $75,600 for a couple) have not moved since they were lifted in March, 2010.

Reported 3 September 2012 Anthony Keane, The Advertiser, page 62.

What are your thoughts? Are you on a Centrelink Pension with your SMSF like about 25% of our clients are?

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About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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4 Responses to Centrelink Deeming Rates to Determine Pension Eligibility Not Moved Since 2010

  1. Gay Withers says:

    Very interesting point to know about deemed interest . Not really fair at all but what can be done about it?.

    Like

  2. Pauline says:

    It’s getting to te stage where the deemed interest rate is actually higher than the amount of interest able to be earned in a term deposit. Give with one hand and take away with the other seems to be the go with governments these days. It would be ok if the revenue wasn’t wasted on the unnecessaries .

    Like

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