The government’s plan to cut deeming rates will see the age pension rise by up to $40 a fortnight for affected retirees. Photograph: Dave Hunt/AAP

Pensioners receiving other income boosts, coalition announces

Aminy Andawi
Business Tips in Indonesia
Labor & Employment
Jul 14, 2019
2284
Up to $804 or more a year will be given to one million Australians when the government moves to change its income test for pensioners. Josh Frydenberg, the treasurer said that it will cost nearly $600m and help over 63,000 pensioners to cut the deeming rates. The deeming rates are used to estimate how much pensioners earn on their financial investments.

Anne Ruston, the families, and social services minister said that affected pensioners would receive $40.50 extra for couple and $31 for singles. The decision was welcomed by the body for older Australians and the payments will start from the end of September and will be backdated to 1 July.
The move was needed as interest paid on savings and the central bank’s decision to cut the cash rate. The council on the Ageing’s Ian Yates said that he is looking forward to a further discussion on how the deeming rate will remove the current level of uncertainty in the future. He also stated that the deeming rate did not affect 75% of pensioners.

Furthermore, the move is considered as proof that the Morrison government has listened and acted on the concerns expressed by older Australians who receive only a part of the pension. The disability support pension, career payment, parenting payment, and Newstart have also affected by the move.

Source: https://www.theguardian.com/business/2019/jul/14/coalition-announces-600m-boost-for-pensioners-as-deeming-rates-set-to-ease

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