“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.”
