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Covid-19 | Federal & State Governments Stimulus Measures banner.Uploaded: 8 April 2020

Government Stimulus Measure:

Reduction in the Social Security Deeming Rates

What is the stimulus/relief?

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.

Who is eligible?

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%.

How do I get it?

These updates to the deeming rates are set to automatically apply from 1 May 2020.

Who should use this stimulus/other consideration?

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.

More Info:

https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/supporting-australian-workers-and-business

Closing comment

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.

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