REDUCED DEEMING RATES PUT MONEY BACK IN VETERANS’ POCKETS
Nearly 60,000 members of the veteran and defence communities will benefit from a decrease to deeming rates, the Minister for Veterans’ Affairs, Senator the Hon. Michael Ronaldson, announced today.
“The Government will decrease deeming rates from today Monday 4 November, to better reflect returns available to pensioners from financial investments,” Senator Ronaldson said.
The new deeming rate will lower from 2.5 per cent to 2 per cent for total financial investments up to $46,600 for single pensioners or $77,400 for a couple. The upper deeming rate will also decrease, from 4.0 per cent to 3.5 per cent for balances over these amounts.
The first full pension payment calculated using the new deeming rates will be on payday 28 November 2013. The payment on 14 November 2013 will be calculated partly using the previous deeming rates and partly using the new deeming rates.
“The reduced deeming rates will benefit service pensioners and income support supplement recipients who receive less than the maximum rate of pension due to their income. The average increase is around $8.00 per fortnight,” Senator Ronaldson said.
“In addition to this new measure, the Coalition Government has committed to scrap the Carbon Tax and reduce wasteful spending, whilst retaining existing Carbon Tax compensation measures,” Senator Ronaldson said.
Deeming rates are used by the Government to assess pensioners’ financial assets determining their level of service pension or income support supplement. They are applied to the total value of a person’s financial assets, including bank accounts and shares.