Cuts to deeming rates a cash boost for more than 10,000 Hinkler residents

More than 10,000 people in Hinkler will benefit from a multimillion boost across the next four years following the Coalition Government’s decision to cut deeming rates.

Federal Member for Hinkler Keith Pitt has welcomed the decision which means more money in the pockets of older Australians.

“Under the new rates age pensioners whose income is assessed using deeming will receive up to $40.50 additional a fortnight for couples ($1,053 extra a year) and up to $31 a fortnight for singles ($804 a year),” Mr Pitt said.

“This is an issue which has been raised with my office by constituents on a regular basis and yesterday’s announcement is a step in the right direction but there is still more work to do.

“The system in its current form is not without problems and it’s a good opportunity to review how it’s working.

“I look forward to discussing what options might be available with Minister Ruston in the future.”

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. The upper deeming rate will be cut from 3.25 per cent to 3.0 per cent for balances over these amounts.

The decision will take effect from September in line with the regular indexation of the pension and will be backdated to July 1.