Deeming rate cut to boost pension

Older Australians have described a much anticipated pension increase coming off the back of the first deeming rate cut in four years as welcome but long overdue.

Deeming rates are meant to reflect the standard returns pensioners can earn on their investments, and are therefore used to determine individual pension levels.

From 20 March, part-rate pensioners will see an average increase of $6.80 per fortnight in their pension payments.

The lower deeming rate will decrease from 3 per cent to 2.5 per cent for financial investments up to $45,400 for single pensioners or $75,600 for a couple.

The upper deeming rate will decrease from 4.5 per cent to 4 per cent for balances over these amounts.

National Seniors Australia has been lobbying the federal government to take action on deeming rates for over two years.

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