Australia’s peak seniors advocate, COTA Australia, said new pension deeming rates announced today will help almost three quarters of a million part pensioners to make ends meet.
Deeming rates are the return on financial assets which is taken into account in pension means testing. COTA’s CE Ian Yates said the rates had been too high for several months and part-pensioners will welcome their reduction from March this year.
“COTA Australia has been in talks with the Federal Government on this critical issue for a couple of months and we are pleased the Minister has taken it on board and provided some financial relief to part pensioners,” Mr Yates said.
“Deeming rates have really been a problem since the Reserve Bank last reduced the interest rate to 3% in December.
“Pensioners have been challenged in trying to find accounts offering them the deeming rate or better and should not have to be account hopping to keep up with interest rate ‘specials’ ” Mr Yates added.
“Many older people are doing it tough and even a small increase in their pension can have a significant positive impact.
“The reduction in deeming rates will allow part pensioners to retain more of the return on their assets without being penalised in their fortnightly pension.
“For older Australians living on low incomes, often just above the poverty line, this announcement will take a little bit of pressure off.
“The reduced deeming rates are an appropriate response to low bank interest levels and we welcome this announcement.”
Media contact: IanYates 0418835439,Jane Garcia 0434489533
