More than 9,000 people in Wide Bay will be better off after the Liberal and Nationals Government cut deeming rates, Federal Member for Wide Bay Llew O'Brien announced today.
Mr O'Brien said 9,060 people will benefit from a multimillion boost across the next four years in Wide Bay, and about 628,000 age pensioners and more than 455,000 people receiving other payments nationally.
The decision will take effect from September in line with the regular indexation of the pension and will be backdated to July 1.
The lower deeming rate will decrease from 1.75 per cent to 1.0 per cent for financial investments up to $51,800 for single pensioners and $86,200 for pensioner couples.
The upper deeming rate will be cut from 3.25 per cent to 3.0 per cent for balances over these amounts.
"The decision to cut deeming rates shows the Coalition Government has listened to the reasonable concerns expressed by older Australians who receive a part pension, and taken action to remedy the situation," Mr O'Brien said.
"This has been an important issue for the one in four aged pensioners who are affected by deeming, and I am pleased to see this sensible approach to supporting our older people who have finely balanced finances."
While 75 per cent of aged pensioners are not affected by deeming this decision recognises that it is an important issue for those who are."
"The end result will mean more money in the pockets of older Australians. Under the new rates age pensioners whose income is assessed using deeming will receive up to $40.50 a fortnight for couples, $1053 extra a year, and $31 a fortnight for singles, $804 a year."
"The changes to the deeming rate will also help people who receive other income tested payments including the Disability Support Pension and Carer Payment, and income support allowances and supplements such as the Parenting Payment and Newstart."