Post by Banjo on Oct 25, 2013 15:33:08 GMT 7
Some pensioners to get deeming benefit
Some pensioners and self-funded retirees will have more money next month after the federal government announced the deeming rate would be cut.
Deeming rates are the return on people's financial assets, which are considered when means testing the Australian pension.
Minister for Social Services Kevin Andrews said on Friday that deeming rates would decrease to two per cent from 2.5 per cent for financial investments up to $46,600 for single pensioners and $77,400 for pensioner couples from November 4.
For higher asset balances, the upper deeming rate would decrease to 3.5 per cent from four per cent.
National Seniors Australia chief executive Michael O'Neill said it would help older Australians with such investments who work hard at managing on a fixed income.
"Now we need to make sure the deeming rate remains in line with the cash rate."
COTA Australia, a body that represents older Australians, says the change brings the deeming rates in line with market returns.
Chief executive Ian Yates said many older people are doing it tough and even a small increase in their pension can have a significant positive impact on their wellbeing.
"For many older Australians living on low incomes, it will ease the pressure and even help avoid some people from sinking below the poverty line," he said in a statement.
news.ninemsn.com.au/national/2013/10/25/17/26/some-pensioners-to-get-deeming-benefit
Some pensioners and self-funded retirees will have more money next month after the federal government announced the deeming rate would be cut.
Deeming rates are the return on people's financial assets, which are considered when means testing the Australian pension.
Minister for Social Services Kevin Andrews said on Friday that deeming rates would decrease to two per cent from 2.5 per cent for financial investments up to $46,600 for single pensioners and $77,400 for pensioner couples from November 4.
For higher asset balances, the upper deeming rate would decrease to 3.5 per cent from four per cent.
National Seniors Australia chief executive Michael O'Neill said it would help older Australians with such investments who work hard at managing on a fixed income.
"Now we need to make sure the deeming rate remains in line with the cash rate."
COTA Australia, a body that represents older Australians, says the change brings the deeming rates in line with market returns.
Chief executive Ian Yates said many older people are doing it tough and even a small increase in their pension can have a significant positive impact on their wellbeing.
"For many older Australians living on low incomes, it will ease the pressure and even help avoid some people from sinking below the poverty line," he said in a statement.
news.ninemsn.com.au/national/2013/10/25/17/26/some-pensioners-to-get-deeming-benefit
