Beware of Government’s questionable deeming calculations

Article published 14 July 2019

Beware of Government’s questionable deeming calculations

“Reductions in the deeming rates are obviously going to produce better outcomes for affected pensioners, but over-deeming will still be rife”, said CPSA Policy Manager Paul Versteege.

“Due to the lower deeming rates, single pensioners can now have $22,000 more in savings before they will be affected . For couples, that’s $38,000.

“But many will continue to be overdeemed if they have their money in 2% term deposits.

“The Government might also explain exactly how it hit on 1% and 3% as the right rates.

“Deeming rates need to be set independently, which highlights the urgent need for a Social Security Commission to set the rate of all social security payments. Leaving the determination of rates by politicians is unfair to those dependent on those rates.”

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