Deeming Rate Changes from 20 September: Will Your Pension Be Affected? (October 25)

Relevant For:

Australian retirees or social security recipients with financial investments such as savings, shares or managed funds.

Key Points:

• Deeming rates determine how Services Australia calculates your pension income from financial assets.
• From 20 September 2025, the lower rate rises from 0.25% to 0.75% and the upper rate from 2.25% to 2.75%.
• The increase ends the COVID-era rate freeze that began in 2020.
• Only those receiving income-tested payments may see changes.
• Most recipients will benefit overall as indexation increases are expected to outweigh deeming impacts.
• Higher actual investment returns above deeming rates aren’t counted as extra income for pension purposes.

Full Article:

From 20 September 2025, changes to the government’s deeming rates may affect how your Age Pension or other social security payments are calculated.