COTA Australia has welcomed today’s announcement by Minister for Social Services Kevin Andrews of
a 0.5% drop in social security deeming rates from 4 November 2013.
Chief Executive Ian Yates said the reductions in redeeming rates was an appropriate response to the
drop in interest rates in recent times.
Deeming rates are the return on financial assets which is taken into consideration when means testing
the Australian pension. The deeming rate decrease will help almost three quarters of a million part
pensioners to make ends meet, he said.
“COTA Australia is pleased the Federal Government has taken such prompt action and provided much‐
needed relief for the country’s part‐pensioners,” Mr Yates said today.
“Consultation with older people during the Federal election highlighted the pressure placed on budgets
when deeming rates were out of sync with interest rate reductions.
“Pensioners have been challenged in trying to find accounts that offer them the deeming rate or better
but this change brings the deeming rates in line with market returns.
“Many older people are doing it tough and even a small increase in their pension can have a significant
positive impact on their wellbeing.
“The reduction in deeming rates will allow part pensioners to keep more of the return on their assets
without being penalised in their fortnightly pension.
“For many older Australians living on low incomes, it will ease the pressure and even help avoid some
people from sinking below the poverty line,” he said.
Media contact: Ian Yates 0418 835 439, Jane Garcia 0434 489 533
