What are Centrelink deeming rates?

Centrelink apply deeming rates to investments held, particularly by aged pensioners. That means Centrelink deems that you are earning a certain rate of return on your savings and investments to assess your income. Deeming rates apply to financial assets such as savings accounts and term deposits.

Currently the deeming rate for singles is 1.75 per cent a year for the first $48,600 invested and 3.25 per cent above that. For couples the 3.25 per cent rate kicks in at $80,600 of combined assets.

Source: The Age

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