Australia. Pensioners set to get a small pay rise in a matter of weeks
Pensioners will have more money in their pockets in a matter of weeks with a change to deeming rates coinciding with a scheduled pay rise.
Single pensioners now receive $926.20 a fortnight, while a pensioner couple receives $698.10 each a fortnight.
The pay rise, due to take effect on September 20, will give single pensioners around $1 day extra – just enough for a coffee from 7-Eleven – and a little less for couples.
Changes to the deeming rate will be backdated to July 1, giving those pensioners affected a lump sum payment next month.
AMP’s technical Strategy manager, John Perri, explains the deeming rate: “The deeming rate is just a mechanism that social security uses to assess income from a range of investments including fixed term deposits, cash, shares, managed funds and superannuation over aged pension age.”
But deeming assumes these assets earn a set rate of income, no matter what they really earn. “So, rather than tracking each individual investment, it’s a set rate that’s applied across the board on all those investments,”
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