People receiving the Age Pension, JobSeeker, ABSTUDY and Parenting Payment will receive higher payments from today. (Source: AAP/Getty)
Millions of Aussie Centrelink recipients will see an increase in their payments from today. But it’s a double-edged sword for pensioners, who will also see deeming rates increase for the first time in half a decade.
More than five million Aussies will benefit from the government’s twice-yearly indexation, which happens in March and September. That includes 2.6 million age pensioners, along with those receiving JobSeeker, ABSTUDY, Parenting Payment, Commonwealth Rent Assistance, the Disability Support Pension and Carer Payment.
Deeming rates, which have remained the same since 2020, have also increased today. The change will impact about 771,000 Centrelink recipients, whose payment rate is impacted by their deemed income.
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Age Pension recipients will see their maximum fortnightly payment go up to $1,178.70, an increase of $29.70. This takes into account the Pension Supplement and Energy Supplement.
Partnered pensions will see their maximum fortnightly payment increase to $888.50 each, an increase of $22.40.
JobSeeker rates will increase to $793.60 per fortnight, up $12.50, for singles aged 22 or over with no children.
The partnered JobSeeker rate will increase to $726.50 each per fortnight, up $11.40.
ABSTUDY rates will also increase to $793.60 per fortnight, up $12.50, for those aged 22 or over living at home or away from home.
Parenting Payment maximum fortnightly rates will increase to $1,039.70, up $16.20, including the supplement and energy supplement.
Partnered parents will see their rate increase to $734.30 a fortnight, up $11.40.
You can see the full list of increases here.
Deeming rates have been frozen since 2020, when they were reduced as an emergency measure during the pandemic.
With inflation now easing, the government announced it would be gradually increasing rates to better reflect current rates of return.
From today, a deeming rate of 0.75 per cent will apply to financial assets under $64,200 for singles and $106,200 combined. That’s an increase from the current 0.25 per cent.
Assets over this amount will be deemed at a rate of 2.75 per cent. That’s an increase from the current 2.25 per cent.
Services Australia said you don’t have to do anything in response to the increase.
“We’ll automatically apply the new deeming rates if you have deemed income,” it said.
Deeming rates are the rates of return the government assumes people earn on their financial assets, including shares, superannuation and bank accounts.
The government uses deeming rates to calculate the assumed income pensioners earn, which can affect the income test.
These rates are assumed regardless of your financial assets actual return. That means anything you earn above that rate isn’t counted in the income test.
Around 771,000 people who receive government welfare and who have income from other sources that are affected by deeming rates.
That includes about 460,000 aged pensioners, 96,000 on JobSeeker payments, and 62,000 disability support pension recipients.
Age Pensioners will also see changes to their income and asset thresholds today.
The cut-off income threshold to receive a part pension will increase to $2,575.40 for singles, up $59.40 per fortnight. The threshold for couples will increase to $3,934, up $89.60 per fortnight.
The cut-off asset threshold to receive a part pension will increase to $714,500 for single homeowners and $972,500 for single non-homeowners, both up $10,000.
For couples, the cut-off will increase to $1,074,000 for homeowners and $1,332,000 for non-homeowners, both up $15,000.
Singles with taxable incomes below $101,105 and couples with incomes below $161,768 may also be eligible for a Commonwealth Seniors Health Card from September 20.
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