The upper deeming rate of 3.25% will be cut to 3.0% for balances over these amounts.

This deemed rate is probably higher than many pensions are earning on bank deposits.  Under the new rates, age pensioners whose income is assessed using deeming will receive up to $40.50 a fortnight for couples, $1053 extra a year, and $31 a fortnight for singles, $804 a year.

The reduced deeming rates have been backdated to 1 July 2019. Any additional pension payment will flow through into pensioners' bank accounts from the end of September 2019 in line with the regular indexation of the pension.

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