The Morrison Government last month announced changes to the deeming rate used to calculate how much a pensioner earns on their financial assets. Specifically, the deeming rate was lowered from 1.75% to 1% for financial investments up to $52,000 (single pensioners) and $86,000 (couples), whereas the upper deeming rate was cut from 3.25% to 3%. The changes meant that single pensioners will see up to $804 extra a year in their pockets and couples $1,053, and will cost the federal budget $600 million over four years.
Today, lobby group National Seniors Australia (NSA) has announced a ferocious campaign that will seek further deep cuts to deeming rates. From The AFR:
National Seniors Australia, Ian Henschke, said changes to the upper deeming rate announced a month ago were inadequate and failed to reflect the actual interest people were earning on cash deposits.
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