About 900,000 Australians will see an increase to their fortnightly social security payments following the Liberal and Nationals Government's decision to reduce deeming rates, Federal Member for Wide Bay Llew O'Brien announced today.
Mr O'Brien said this important change, made in response to changing economic conditions, would benefit 565,000 Age Pensioners and 323,000 other payment recipients with financial assets who were affected by deeming rates.
"Under the new rates payment, recipients whose income is assessed using deeming could receive up to $62 a fortnight for couples, which is $1612 extra a year, and up to $50 a fortnight for singles, which works out to $1300 a year," Mr O'Brien said.
"On average, affected Age Pensioners will receive an additional $8.42 a fortnight, which is an additional $219 a year."
The lower deeming rate will be cut from 1.0 per cent to 0.5 per cent for financial investments up to $51,800 for single pensioners and $86,200 for pensioner couples.
The upper rate, which only affects about 40 per cent of payment recipients with deemed assets, will decrease from 3.0 per cent to 2.5 per cent.
The extra money will start flowing through into peoples bank accounts from May 1.
"The Government is absolutely committed to ensuring the deeming rate is fair and is a reasonable reflection of the state of the market," Minister for Families and Social Services Anne Ruston said
"Through this change and my July 2019 cut to deeming rates the Government has boosted income support payments by more than $1.2 billion to ensure Australians with cash assets who rely on social security can maintain their quality of life."