How does this impact your entitlements?
The new Centrelink deeming rates are changing effective from the 1st of May. These changes will put money back into the pockets of senior Australians receiving the Age Pension, and may increase the number of Australians eligible for either the age pension or the Commonwealth Seniors Health Card (CSHC).
The rates are used by Centrelink to work out the income generated from your financial assets. Centrelink essentially assumes you earn this amount of income from those assets regardless of what they really earn.
What are financial assets?
The main types of financial assets are:
- savings accounts and term deposits
- managed investments, loans and debentures
- listed shares and securities
- some income streams such as account-based pensions
The table below outlines the new rates.
|Lower Limit – 0.25% (reduced from 1%)||Applies to the first $51,800 of financial assets||Applies to the first $86,200 of combined financial assets|
|Upper Limit – 2.25% (reduced from 3%)||Applies to all financial assets above $51,800||Applies to combined financial assets above $86,200|
To find out how these changes might affect your entitlements click here