More than 10,500 people in our electorate will benefit from a multi-million dollar boost across the next four years following the federal Coalition government's decision to cut deeming rates.
The changes will benefit about 628,000 age pensioners and more than 455,000 people receiving other payments.
The decision takes effect from September, as with the regular indexation of the pension, and will be backdated to July 1.
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 shows The Nationals in government continue to listen and act on the reasonable concerns expressed by older Australians who receive a part pension.
While 75 per cent of aged pensioners are not affected by deeming this decision recognises it is an important issue for those who are.
The government has taken a sensible approach to supporting older Australians because we understand pensioners have finely balanced finances.
It will mean more money in the pockets of older Australians. Age pensioners whose income is assessed using deeming will receive up to $40.50 a fortnight for couples, or $1053 extra a year, and $31 a fortnight for singles, or $804 a year.
Changes to the deeming rate will also benefit people receiving other income-tested payments including the Disability Support Pension and Carer Payment, and income support allowances and supplements such as the Parenting Payment and Newstart.