Monday, June 29, 2015

1 July 2015 Age Pension Deeming Rate Changes

This article summarises both the recent and forecast changes to the age pension, specifically the changes to deeming rates.


1 July 2015 - every July the Government reviews the deeming rates, income and assets thresholds

20 March 2015 - every March and September the Government reviews the pension rates.

Our age pension calculator reflects the above changes and forecasts age pension entitlements as at 1 July 2015.

1 July 2017 - a major change in age pension structure is proposed. 

Our age pension calculator forecasts a reduction in the age pension that most pensioners can expect.


1 July 2015 - The deeming thresholds have changed slightly while the deeming rates have remained unchanged, with the ‘upper’ rate of 3.25% still well above cash rates - refer below,
  • for financial investments worth up to $48,600 (for singles - previously $48,000) and up to $80,600 (for couples - previously $79,600), a deeming rate of 1.75% applies.
  • for financial investments above $48,600 (singles) or above $80,600 (couples), a higher deeming rate of 3.25% applies.

1 July 2017 - The Government has announced that from 1 July 2017, the deeming thresholds will be significantly reduced. While the focus has been on the impact of lowering the assets threshold resulting in the majority of age pensioners losing entitlements these new deeming thresholds will also impact on a large sector of age pensioners. Specifically, from July 2017, the Government intends to reduce the deeming thresholds for the lower deeming rate to $30,000 (singles - from $48,600) and $50,000 (couples - from $80,600), subject to legislation.

For information on deeming please refer to the Governments web site.


  1. we've put $200,000 in our super, after the sale of our home, as we had only $380,000 in super between the 2 of us. in order to give us some more income in retirement. from 2017 that will mean that our aged pension will be roughly 200 x $3.00 x 26 = $15,600 lower (nearly halved!)
    we have put our smaller home up for sale and move back into a bigger one, by putting $200,000 back into our home, therefore qualifying for a full pension.
    what were they thinking when they designed this? politicians, who overall don't need the pension, have no idea of the impact of this.
    at the same time they designed this 'put 1 million in your super', in order to pay no tax for themselves.
    Nice one!

  2. This so unfair I was recently widowed at 72 had not claimed pension before as hubby was still working and died unexpectedly we went without holidays etc so we could save for our retirement and travel now with what was hubbies Super and insurances came through and what was my Super now in savings I have lost half of my pension come 2017 it will be down to about $200 a fortnight