Deeming Rate
The prime minister has announced a moratorium on CentreLink deeming rates for those on the aged pension. The deeming rate is an estimated earning on an individual's assets--for most, their life savings. Financial assets over $53,000 are deemed to earn 2.25%. In a bid to woo the life-experienced voter, Mr. Morrison said he will freeze this rate for the next two years.
Now, hold on a minute! We are talking about individuals who have been around the block and know and thing or three.
The RBA began lowering the official interest rate in 2010. Until yesterday, the interest rate was 0.1%, a long way shy of 2.25% Many rely on their saving to support their life, avoiding the risky equities market for the security of a bank account getting zero or very little interest.
The government has been gouging these folk for years.
My vote goes to any party who declares the deeming rate on saving to remain the same (or lower) in perpetuity and not a measly two years. If interest goes up to 4.5% some people MAY recoup the losses they endured under the present regime.
For how many years has Centrelink kept the gifting amounts unchanged?
The limits for gifting are $10,000 in any financial year, but limited to $30,000 over five years.
I am sure $10,000 from many many years ago is not the same value today.
Deeming rates are also higher than amounts most pensioners receive from their bank.