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NSA has created a simple tool to help pensioners to see the possible impact on Age Pension payments of a change in deeming rates.
It shows an estimate of the maximum amount the Age Pension could fall from 1 July 2025, if deeming rates revert to the previous methodology.
Try our estimator and join our campaign here .
National Seniors Australia (NSA) has launched a tool to help pensioners estimate how much their Age Pension may reduce if deeming rates increase after 1 July 2025.
Deeming is used to estimate income from financial assets. It impacts means testing for support payments including the Age Pension, JobSeeker, parenting payments, and aged care.
"Deeming rates have been frozen for three years, sparing people lower pension payments as interest rates have soared," said NSA chief executive officer Chris Grice.
"Now is not the time to remove the freeze and revert to the previous method for deeming rates. This could result in a significant drop in payment, when cost-of-living pressures remain high.
"Older Australians are still struggling to pay necessities, such as utilities, petrol, groceries, and rent. A continued freeze on deeming rates would spare pensioners and other income support payment recipients from suffering a drop in income."
Mr Grice said the perception in the community that deeming rates only impact "wealthy" pensioners with significant savings "simply isn't true".
"Our modelling shows both full-rate pensioners and lower-wealth part-rate pensioners will be impacted if deeming rates change back to the pre-freeze method," he said.
"It is important to understand that as many as half a million full-rate Age Pensioners could be impacted if the old method is applied to deeming rates from 1 July 2025.
"NSA wants the government to continue the freeze on deeming until interest rates ease further. It's a sensible way to help older people meet daily living costs.
"Any change to deeming rates should be introduced in a measured, incremental, and transparent way. We don't want a situation where older Australians, struggling under cost-of-living pressures, are hit harder."
NSA has created a simple estimator that allows pensioners to see the possible impact on Age Pension payments. It shows an estimate of the maximum amount the Age Pension could fall from 1 July 2025, if deeming rates revert to the previous methodology.
NSA estimates that, for homeowners, a couple could lose up to $285 and a single person $203 per fortnight respectively under a worst-case scenario (depending on their individual circumstances).
To use our estimator and join our deeming campaign click here .
