Now for the bad news for pensioners under the income test.\u00a0<\/p>\n
With the rebalancing of deeming rates a certainty, the actual amount of change will depend on how much deeming rates increase when indexation is applied.\u00a0<\/p>\n
Our tool allows you to estimate the potential impact of increasing deeming rates by 0% (no change), 0.25%, and 0.5% compared to the current 0.75% rate (applying to financial assets below $64,200 for a single pensioner and $106,200 for a couple) and 2.25% (for assets above the threshold). We assume the increase is applied equally to both rates \u2013 in reality the government could increase the lower rate differently to the upper rate.\u00a0<\/p>\n
As you would expect, the higher that deeming rates increase, the less that your pension will increase. Beyond a certain point, your pension payment could in fact reduce.\u00a0<\/p>\n
For example, a single homeowning pensioner with $300,000 of assets outside the principal place of residence would experience an increase in their pension of approximately $11 per fortnight if deeming rates were increased by 0.25% \u2013 compared to a $22 per fortnight increase if deeming rates aren\u2019t lifted. If deeming rates increased by 0.5%, they would receive small decrease in the pension of $1 per fortnight.\u00a0<\/p>\n
A homeowning couple with $500,000 of assets outside the family home would receive an increase of $16 per fortnight if deeming rates increased by 0.5%, compared to $33 per fortnight with no deeming rate increase. They would receive a decrease of $2 per fortnight if deeming rates increased by 0.5%.<\/p>\n","protected":false},"excerpt":{"rendered":"Now for the bad news for pensioners under the income test.\u00a0 With the rebalancing of deeming rates a…\n","protected":false},"author":2,"featured_media":481242,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185],"class_list":["post-481241","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-au","tag-australia","tag-business","tag-finance","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/481241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=481241"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/481241\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/481242"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=481241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=481241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=481241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}