DEEMING RATE HIKE A BLOW TO PENSIONERS - 27 aUGUST

Breaking

2 Dec

The Albanese Government has announced an increase to deeming rates, set to take effect from 20 September 2025, impacting pensioners and other welfare recipients with financial assets.

Deeming rates – used to estimate income from financial assets like term deposits and property for pension and welfare payments – have remained at historic lows since COVID-19 to ease cost-of-living pressures. The upcoming increase signals a return to pre-pandemic settings.

Under the changes, singles will see the deeming rate on financial assets up to $64,200 rise from 0.25% to 0.75% – with similar increases applying to couples and higher asset thresholds.

Federal Member for Lyne, Alison Penfold MP, said the move comes with little warning and leaves many older Australians in the dark.

“A lot of pensioners are just trying to keep up with the basics – power bills, groceries, rent,” Ms Penfold said. “Changing the rules with hardly any notice makes it even harder for people to budget and plan.”

“These Australians aren’t a line item in the budget – they’re real people who’ve worked hard, raised families, and supported their communities,” she said. “They deserve better.”

Media reports suggest the deeming rate increase will affect around 900,000 income support recipients – including approximately 450,000 pensioners – and reduce pension payments for many who rely on them to meet daily expenses.

Ms Penfold said the policy shift ignores the reality for people on fixed incomes.

“Just because inflation is easing on paper doesn’t mean life is getting cheaper,” she said. “The cost of food, rent and essential services is still climbing – and this change makes it even harder for people to get by.”

“If the Albanese Government is serious about easing cost of living pressures, it should hold off on changes like this and consult directly with those affected before shifting the goalposts,” Ms Penfold concluded.

ENDS

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