Money back in veterans’ pockets
Nearly 60,000 members of the veteran and defence communities will benefit from a decrease to deeming rates, the Minister for Veterans’ Affairs, Senator Michael Ronaldson, announced.
The federal government decreased deeming rates from yesterday (4 November) to better reflect returns available to pensioners from financial investments.
The new deeming rate will lower from 2.5% to 2% for total financial investments up to $46,600 for single pensioners or $77,400 for a couple. The upper deeming rate will also decrease, from 4.0% to 3.5% for balances over these amounts.
The first full pension payment calculated using the new deeming rates will be on payday 28 November 2013. The payment on 14 November 2013 will be calculated partly using the previous deeming rates and partly using the new deeming rates.
“The reduced deeming rates will benefit service pensioners and income support supplement recipients who receive less than the maximum rate of pension due to their income. The average increase is about $8 per fortnight,” Senator Ronaldson said.
“In addition to this new measure, the Coalition government has committed to scrap the Carbon Tax and reduce wasteful spending, whilst retaining existing Carbon Tax compensation measures,” Senator Ronaldson said.
Deeming rates are used by the government to assess pensioners’ financial assets determining their level of service pension or income support supplement. They are applied to the total value of a person’s financial assests, including bank accounts and shares.
For more information on deeming, call 133 254 or 1800 555 254 from regional Australia.
