Rancie Financial News - Deeming Rate Changes

by **Graeme Beardwood** Mon Jul 15, 2019 10:45 pm

The Federal Government has announced changes to deeming rates, a move welcomed by over 600,000 age pensioners.

The Department of Human Services (DHS) will backdate deeming rates from 1 July 2019. The lower deemed rate will drop from 1.75% to 1%, while the higher rate will reduce from 3.25% to 3%.

Previously, the first $51,800 of financial assets incur a deemed rate of 1.75% (anything thereafter attracts the 3.25% rate) for singles.

For couples with at least one person receiving a pension, the first $86,200 of combined assets has the deemed rate of 1.75% (anything thereafter is deemed to earn 3.25%

The deeming rate, the interest rate which the DHS uses to determine the amount pensioners will receive, is applied to financial investments. These assets are defined as pensioners' savings accounts and term deposits, managed investments, loans and debentures, listed shares and securities, and some income streams.

Should you have any questions at all regarding the new deeming rates and how it might apply to you please don’t hesitate to contact us.

Regards,
Jon.Rancie CFP :registered: Adv.Dip.FS (Financial Planning)

Note: Some of the points in this update may or may not apply to you. If you have any questions or comments on the points that relate to your personal situation please don’t hesitate to contact us. If you feel the content of this update would be beneficial for any of your family, friends or colleagues feel free to forward the email onto them for their consideration.