Uploaded: 8 April 2020
A further 0.25% reduction in the deeming rates in addition to the reductions announced in the first stimulus package.
What is the aim of this initiative?
This measure will benefit approximately 900,000 recipients of income support payments, most of which are recipients of the Age Pension.
Single pensioners with financial investments up to $51,800, and couples up to $86,200 will have the deeming rate reduced to 0.25%.
The upper deeming rate for those with assets over the above limits will decrease to 2.25%.
These updates to the deeming rates are set to automatically apply from 1 May 2020.
This initiative is an important development to those in receipt of the Age Pension.
With interest rate reductions by the RBA, and banks continuing to reduce the interest on bank accounts and term deposits, the gap between income from financial investments and deemed income from those investments has been widening.
This measure helps support some of our most vulnerable.
The Government is moving quickly and things are changing daily with regards to the response to COVID-19.
Should you have any queries regarding this measure or any Government measure announced in relation to COVID-19, please contact our office for more information.
If you would like to print this information, please click here for our PDF format.
The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.