Deeming provisions 108-05050000

Financial assets to which deeming applies

Financial assets to which deeming applies include:

bank, building society and credit union cheque and savings accounts
cash
term deposits
cash management accounts
money held in solicitors' trust accounts (for property settlements, see Assessment of Assets (CLK))
managed investments
listed shares and securities
bonds, debentures, unsecured notes, bank bills
loans made to individuals, private companies and trusts
shares in unlisted public companies
gold and other bullion
investments in superannuation and roll-over funds held by recipients who are over Age Pension age
asset-tested income stream (short term)
from 1 January 2015, asset-tested income stream (long term) that is an account-based pension
from 1 January 2015, asset-tested income stream (long term) that is an account-based annuity
deprived assets

Deeming rates and thresholds

Table 1

Item	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 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 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 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 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 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 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 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 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 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 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

Examples of calculating income using the deeming threshold and rates

Table 2

Item	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

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