Social security income test deeming rates have decreased in recent months. The latest change to deeming rates was on 20 March 2009.
The deeming rates are used by Centrelink and the Department of Veterans’ Affairs to assess income from financial investments for pension and allowance purposes. The deeming rates do not set the returns from actual investments and savings accounts. Returns are determined by market forces and if pensioners earn more than the deeming rates, the extra income is not assessed.
The deeming rate is currently 2 per cent for the first $41 000 of total financial investments held by a single pensioner; for a pensioner couple, that rate applies to the first $68 200. For financial investments in excess of these amounts, the deeming rate is 3 per cent.
Based on these deeming rates, under the income test a single pensioner whose only income is from financial investments can have $133 266 in investments and still receive a full pension, while a pensioner couple can have $230 733 and still receive a full pension.
Further information is available from Centrelink by calling 13 2300.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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