Deeming provisions 108-05050000

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Deeming rates - current and historical

1

Current deeming rates from 20 March 2026

• 1.25% for the first $64,200 of financial investments held by a single customer
• 1.25% for the first $106,200 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 1.25% for the first $53,100 of financial investments held by each member of a non-pensioner couple
• 3.25% for any balances above these amounts

2

Historical deeming rates from 20 September 2025 to 19 March 2026

• 0.75% for the first $64,200 of financial investments held by a single customer
• 0.75% for the first $106,200 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 0.75% for the first $53,100 of financial investments held by each member of a non-pensioner couple
• 2.75% for any balances above these amounts

3

Historical deeming rates from 1 July 2025 to 19 September 2025

• 0.25% for the first $64,200 of financial investments held by a single customer
• 0.25% for the first $106,200 of financial investments held by a pensioner or Commonwealth Seniors Health Card (CSHC) couple
• 0.25% for the first $53,100 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 2024 to 30 June 2025

• 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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

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Examples

1

Single JobSeeker Payment (JSP) customer

Jane is a single JSP customer with a total of $65,800 in financial investments: $9,000 is in a working account, $15,000 in a cash management account and $41,800 in a term deposit.

• Determine the value of the customer's financial assets:
  • add financial investments and deprived assets
  • Result: $65,800
• The value of the financial assets ($65,800) is more than the current threshold ($64,200)
• Determine the unused value amount:
  • total value of total financial assets ($65,800)
  • less threshold ($64,200)
  • Result: $1600
• Multiply the threshold by lower deeming percentage
  • Result: $64,200 x 1.25% = $802.50 deemed income per year
• Multiply the unused value by the higher deeming percentage
  • Result: $1600 x 3.25% = $52.00 deemed income per year
• Determine total deemed income:
  • Result: $802.50 + $52.00 = $854.50

If the total value of financial assets was less than the threshold amount, only the 1.25% 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 $10,000 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 $53,100
  • Result for Chrissy: $53,300. This is more than the threshold of $53,100
• Determine the amount in excess of threshold:
  • total value of financial assets
  • less threshold
  • Result for Ben: Not Applicable
  • Result for Chrissy: $53,300 - $53,100 = $200
• For Ben:
  • multiply the total value of his financial assets by 1.25%
  • $15,000 x 1.25% = $187.50 deemed income per year
• For Chrissy:
  • multiply the threshold by 1.25%
  • $53,100 x 1.25% = $663.75 deemed income per year
  • multiply the balance in excess of the threshold by 3.25%
  • $200 x 3.25% = $6.50
• Determine total deemed income:
  • add total below threshold and above threshold amounts
  • Result for Ben: $187.50
  • Result for Chrissy: total deemed income $663.75 + $6.50 = $670.25

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 ($106,200)
  • Result: $29,400
• Multiply threshold by 1.25%
  • Result: $106,200 x 1.25% = $1327.50 deemed income per year
• Multiply excess by 3.25%:
  • Result: $29,400 x 3.25% = $955.50
• Determine total deemed income:
  • Result: $1327.50 + $955.5.50) = $2283.00

If the total value of financial assets was less than the threshold, amount, only the 1.25% deeming rate would apply