More than 6965 people living in Far North Queensland will benefit from a multimillion boost across the next four years following the Morrison Government’s decision to cut deeming rates.
Federal Families and Social Services Minister Senator Anne Ruston said the changes would benefit about 628,000 age pensioners and more than 455,000 people receiving other payments.
The decision will take effect from September 2019 in line with the regular indexation of the pension and will be backdated to July 1.
“The lower deeming rate will decrease from 1.75 per cent to 1.0 per cent for financial investments up to $51,800 for single pensioners and $86,200 for pensioner couples,” Ms Ruston said.
“The upper deeming rate will be cut from 3.25 per cent to 3.0 per cent for balances over these amounts.
“The decision shows the Morrison Government has listened to and acted on the reasonable concerns expressed by older Australians who receive a part pension.”
“While 75 per cent of aged pensioners are not affected by deeming this decision recognises that it is an important issue for those who are.”
Federal Leichhardt MP Warren Entsch said the decision will make a difference to the lives of people in Far North Queensland.
“The government has taken a sensible approach to supporting older Australians because we understand that pensioners have finely balanced finances,” Mr Entsch.
“It will mean more money in the pockets of older Far North Queenslanders.
“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.
“Changes to the deeming rate will also benefit people receiving other income tested payments including the Disability Support Pension and Carer Payment, and income support allowances and supplements such as the Parenting Payment and Newstart.”