Beware of Government’s questionable deeming calculations

Article published 14 July 2019

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“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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