National Seniors Australia – ‘July cut to deeming rates was not enough’
Luke Grant is joined by Ian Henschke, Chief Advocate for National Seniors Australia, who says the recent cut to deeming rates in July was not enough and with another interest rate cut expected, it’s time to put an end to this unfairness.
A lower deeming rate would also put extra spending money in the pockets of a million pensioners, boosting Australia’s sluggish economy.
The rates are used to deem the amount of income from investments, including savings. The more you are deemed to have earned the less pension you get. As the cash rate has dropped, the higher deeming rate of 3% on savings over $51,800 is now double the typical return on a term deposit.
This is costing pensioners but boosting the government’s budget. National Seniors Chief Advocate Ian Henschke says when interest rates are cut again, it would increase the unfairness and show the way the government is balancing its budget on the backs of pensioners.
“This is a ballooning budget burden on pensioners, who can least afford it.” he says.
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