So What’s a Deeming Rate, and Why Do You Care?
In Centrelink’s world, a deeming rate is the amount of money the system pretends you’re making from your savings and investments, no matter what they really earn. The rate is a shortcut to guess your income from things like shares, super funds, and savings accounts. Because Centrelink uses this guess instead of asking for actual income, any change to the rate goes straight to the base of your payments. The new deeming numbers will change your income estimate and, in turn, the pension you receive.
Coming Changes on September 20, 2025!
Social Services Minister Tanya Plibersek has shared the key updates that will soon impact pensioners:
For those who are single, the first $64,200 in savings will be counted at 0.75% (up from the current 0.25%);
For couples, the first $106,200 of their combined savings will also be viewed at the same 0.75% rate;
Any assets above those limits will be deemed to earn 2.75% instead of the current 2.25%.
Who Will Feel the Shift?!
About 460,000 older pensioners will see the change, along with other Centrelink clients like JobSeeker and parents on payment plans. Beyond that, 2.6 million older Australians will notice some sort of payment adjustment on their pension slips.
Why the Change Now?
The move follows years of holding benefits steady through the COVID period. With inflation showing early signs of settling and the economy starting to steady, the government plans to realign deeming rates to levels in place before the pandemic. If this sounds a bit worrying, some buffer features are planned.
What the Shift Could Mean for Households
COTA Australia CEO Patricia Sparrow points out that the government is phasing the adjustment in slowly and is pairing the rate rise with one of the largest pension increases in years, to cushion the changes for older Australians.
Extra Good News!
Happy news is coming for those on the pension:
The income cut-off for part pensions just got a bump, making it easier to qualify.
The asset limits you can have while still getting the pension have also gone up.
A brand-new chance to grab the Commonwealth Seniors Health Card is here for seniors on tighter budgets.
What to Check
Although you won’t need to lift a finger, you still want to:
Take a fresh look at your bank accounts and your other assets.
Learn how the new deeming rates may change the pension amount you actually get.
Speak to a financial planner if you still have nagging questions.
The government is saying, loud and clear, that these steps are part of a steady journey back to a healthy economy, and seniors’ money matters stay a top priority.