Clients on full or part government pensions will be pleased to know that the government will reduce pension ‘deeming rates’ from 20 March 2013 to better reflect returns available to them from their financial investments.
Deeming rates reflect the standard rates of return that pensioners can earn from their financial assets. They are used to determine how much pension they are entitled to receive under the means test.
The ‘lower deeming rate’ will decrease from 3% to 2.5% for financial investments up to $45,400 for single pensioners or $75,600 for a couple.
The ‘upper deeming rate’ will decrease from 4.5% to 4% for balances over these amounts.
Payments affected by the deeming rate include means tested payments, such as the Age Pension, Service Pension, Disability Support Pension and Carer Payment, income support allowances and supplements such as the Parenting Payment and Newstart.
If you feel like you need support in making your way through the uncertainties and tough times ahead, or simply have a question or want more information, please contact PJS Accountants on (07) 33903177 or click here to contact us.