Zest! / LATEST NEWS

Frozen – the deeming rate edition

1 min read

It’s not a reference to the popular musical, rather it’s about a pledge to pensioners to freeze the current Age Pension Means Test deeming rates, until 2024, giving them some certainty in the short term.

What is the deeming rate? Services Australia defines deeming as a set of rules used to work out the income created from your financial assets. It assumes these assets earn a set rate of income, no matter what they really earn. For more information, watch the Services Australia video.

By freezing the deeming rate at the current levels, some pensioners may benefit from earning additional interest on their deposit accounts as interest rates rise, without having their age pension payment rate reduced. A welcome relief for some given inflation and cost of living pressures.

Here are the rates:

  • The lower deeming rate will be frozen at 0.25% for financial investments up to $53,600 for single pensioners and $89,000 for pensioner couples.
  • The upper deeming rate will remain at 2.25% on investment assets over the amount of $53,600 (or $89,000 for couples).

 

 

Issued by Total Risk Management Pty Ltd ABN 62 008 644 353, AFSL 238790 (TRM) as the trustee of the Russell Investments Master Trust ABN 89 384 753 567. Resource Super and Nationwide Super are divisions of the Russell Investments Master Trust. This article provides general information only and has not been prepared having regard to your specific objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate to your objectives, financial situation and needs. The information has been compiled from sources considered to be reliable, but is not guaranteed. Any examples have been included for illustrative purposes only and should not be relied upon for the purpose of making an investment decision. Past performance is not a reliable indicator of future performance. The Product Disclosure Statement (PDS) can be obtained by phoning 1800 555 667 or by visiting russellinvestments.com.au or for Nationwide Super by phoning 1800 025 241 or visiting nationwidesuper.com.au. Any potential investor should consider the latest PDS in deciding whether to acquire, or to continue to hold, an investment in any Russell Investments product. The Target Market Determinations for the Russell Investments Master Trust are available on our website. The Financial Services Guide for the Russell Investments Master Trust is available on our website or on the Nationwide Super website.  

Russell Investment Financial Solutions Pty Ltd ABN 84 010 799 041, AFSL 229850 (RIFS) is the provider of MyTracker and the financial product advice provided via GoalTracker Plus. TRM and RIFS are part of Russell Investments. Russell Investments or its associates, officers or employees may have interests in the financial products referred to in this document by acting in various roles including broker or adviser, and may receive fees, brokerage or commissions for acting in these capacities. In addition, Russell Investments or its associates, officers or employees may buy or sell the financial products as principal or agent. If you decide to purchase or vary a financial product, Russell Investments and/or other companies within the Russell Investments group of companies will receive fees and other benefits, which will be a dollar amount or percentage on the value of your investments and/or your insurance fees. You can ask us for more details. General financial product advice is provided by RIFS or Link Advice Pty Ltd (Link Advice) ABN 36 105 811 836, AFSL 258145. Limited personal financial product advice is provided by Link Advice.  

This work is copyright 2022. Apart from any use permitted under the Copyright Act 1968, no part may be reproduced by any process, nor may any other exclusive right be exercised, without the permission of Russell Investments.