Deeming provisions 108-05050000

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Deeming rates - current and historical

1

Current deeming rates from 1 July 2024

• 0.25% for the first $62,600 of financial investments held by a single customer
• 0.25% for the first $103,800 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 0.25% for the first $51,900 of financial investments held by each member of a non-pensioner couple
• 2.25% for any balances above these amounts

2

Historical deeming rates from 1 July 2023 to 30 June 2024

• 0.25% for the first $60,400 of financial investments held by a single customer
• 0.25% for the first $100,200 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 0.25% for the first $50,100 of financial investments held by each member of a non-pensioner couple
• 2.25% for any balances above these amounts

3

Historical deeming rates from 1 July 2022 to 30 June 2023

• 0.25% for the first $56,400 of financial investments held by a single customer
• 0.25% for the first $93,600 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 0.25% for the first $46,800 of financial investments held by each member of a non-pensioner couple
• 2.25% for any balances above these amounts

4

Historical deeming rates from 1 July 2021 to 30 June 2022

• 0.25% for the first $53,600 of financial investments held by a single customer
• 0.25% for the first $89,000 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 0.25% for the first $44,500 of financial investments held by each member of a non-pensioner couple
• 2.25% for any balances above these amounts

5

Historical deeming rates from 1 July 2020 to 30 June 2021

• 0.25% for the first $53,000 of financial investments held by a single customer
• 0.25% for the first $88,000 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 0.25% for the first $44,000 of financial investments held by each member of a non-pensioner couple
• 2.25% for any balances above these amounts

6

Historical deeming rates from 1 May 2020 to 30 June 2020

• 0.25% for the first $51,800 of financial investments held by a single customer
• 0.25% for the first $86,200 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 0.25% for the first $43,100 of financial investments held by each member of a non-pensioner couple
• 2.25% for any balances above these amounts

7

Historical deeming rates from 1 July 2019 to 30 April 2020

• 1% for the first $51,800 of financial investments held by a single customer
• 1% for the first $86,200 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 1% for the first $43,100 of financial investments held by each member of a non-pensioner couple
• 3% for any balances above these amounts

8

Historical deeming rates from 1 July 2018 to 30 June 2019

• 1.75% for the first $51,200 of financial investments held by a single customer
• 1.75% for the first $85,000 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 1.75% for the first $42,500 of financial investments held by each member of a non-pensioner couple
• 3.25% for any balances above these amounts

9

Historical deeming rates from 1 July 2017 to 30 June 2018

• 1.75% for the first $50,200 of financial investments held by a single customer
• 1.75% for the first $83,400 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 1.75% for the first $41,700 of financial investments held by each member of a non-pensioner couple
• 3.25% for any balances above these amounts

10

Historical deeming rates from 1 July 2016 to 30 June 2017

• 1.75% for the first $49,200 of financial investments held by a single customer
• 1.75% for the first $81,600 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 1.75% for the first $40,800 of financial investments held by each member of a non-pensioner couple
• 3.25% for any balances above these amounts

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Examples

1

Single JobSeeker Payment (JSP) customer

Jane is a single JSP customer with a total of $63,400 in financial investments: $9,000 is in a working account, $15,000 in a cash management account and $39,400 in a term deposit.

• Determine the value of the customer's financial assets:
• add financial investments and deprived assets
• Result: $63,400
• The value of the financial assets ($63,400) is more than the current threshold
• Determine the unused value amount:
• total value of total financial assets ($63,400)
• less threshold ($62,600)
• Result: $800
• Multiply the threshold by lower deeming percentage
• Result: $62,600 x 0.25% = $156.50 deemed income per year
• Multiply the unused value by the higher deeming percentage
• Result: $800 x 2.25% = $18.00 deemed income per year
• Determine total deemed income:
• Result: $156.50 + $18.00 = $174.60

If the total value of financial assets was less than the threshold amount, only the 0.25% deeming rate would apply

2

Non-pensioner couple (neither receiving a pension)

Neither member of the couple receives a social security pension, service pension or rehabilitation allowance.

Ben receives JSP and his partner Chrissy receives Parenting Payment (PP). Ben has $5,000 in a working account and a further $20,000 in a joint account. Chrissy has $9,800 in another account, shares valued at $33,300 and her share of the joint account. Deemed income for Ben and Chrissy is calculated separately because the separate allowance Income Tests apply.

• Determine the value of each customer's total financial assets:
• add financial investments and deprived assets
• Result for Ben: $15,000. This is less than the threshold of $51,900
• Result for Chrissy: $53,100. This is more than the threshold of $51,900
• Determine the amount in excess of threshold:
• total value of financial assets
• less threshold
• Result for Ben: Not Applicable
• Result for Chrissy: $53,100 - $51,900 = $1,200
• For Ben:
• multiply the total value of his financial assets by 0.25%
• $15,000 x 0.25% = $37.50 deemed income per year
• For Chrissy:
• multiply the threshold by 0.25%
• $51,900 x 0.25% = $129.75 deemed income per year
• multiply the balance in excess of the threshold by 2.25%
• $1,200 x 2.25% = $27.00
• Determine total deemed income:
• add total below threshold and above threshold amounts
• Result for Ben: $37.50
• Result for Chrissy: total deemed income $129.75 + $27.00 = $156.75

3

Pensioner couple

Blair and Joanna are both Age Pension customers with a combined total of $135,600 in financial investments. $89,600 is in a term deposit and they have $46,000 worth of managed investments.

• Determine the value of the customer's total financial assets:
• add financial investments and deprived assets
• Result: $135,600
• Determine the balance in excess of the threshold:
• total value of financial assets ($135,600)
• less threshold ($103,800)
• Result: $31,800
• Multiply threshold by 0.25%
• Result: $103,800 x 0.25% = $259.50 deemed income per year
• Multiply excess by 2.25%:
• Result: $31,800 x 2.25% = $715.50
• Determine total deemed income:
• Result: $259.50 + $715.50) = $975.00

If the total value of financial assets was less than the threshold, amount, only the 0.25% deeming rate would apply