Deeming freeze to help pensioners keep more in their pockets

The Australian Government has delivered on its commitment to freeze social security deeming rates at their current levels for a further two years.

Minister for Social Services, the Hon Amanda Rishworth MP, said the freeze applies to all people receiving social security payments, including around 445,000 Age Pensioners whose rate of payment is affected by deeming.

“The Government is, and always will be, committed to ensuring Australia has a strong social safety net so no one is left behind,” Minister Rishworth said.

“By keeping deeming rates low, we will be supporting older Australians who rely on income from deemed financial investments, as well as the pension, to deal with the rising cost of living.”

The lower deeming rate will remain frozen at 0.25 per cent and the upper rate will remain at 2.25 per cent for the next two years to 30 June 2024.

From 1 July 2022, the lower deeming rate applies to financial investments up to the threshold amounts of $56,400 for singles and $93,600 for couples. The upper deeming rate applies for financial assets above these thresholds.

The Government indexes deeming rate thresholds every 1 July, in line with increases in the cost of living.

More details on the new thresholds are available on the Department of Social Services website.