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Over the weekend, the Morrison Government announced changes to deeming rates for the Aged Pension, which are expected to deliver pensioners an additional $600 million of funding over the next four years.
Specifically, the deeming rate used to calculate how much a pensioner earns on their financial assets will decrease from 1.75% to 1% for financial investments up to $52,000 (single pensioners) and $86,000 (couples), whereas the upper deeming rate will be cut from 3.25% to 3%. The changes mean single pensioners will see up to $804 extra a year in their pockets, and couples $1,053.
From The ABC:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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