The federal government has fought off claims it’s ripping off pensioners by agreeing to cut the deeming rate.

The deeming rate on the first $51,800 of a single pensioner’s financial investments, the first $86,200 of a couple’s, will drop from 1.75 per cent to 1 per cent.

The rate for balances above that will drop from 3.25 to 3 per cent.

It means some part-pensioners will be more than a $1000 better off a year.

Seniors groups have welcomed the change but are pushing for future deeming rates to be set by an independent body, rather than the government.

But Treasurer Josh Frydenberg tells Alan Jones that’s not necessary.

“The deeming rate only affects one-quarter of the pensioners.

“The rest are not affected by the deeming rate because they have lower assets.

“But for those who are affected, and they have their money in the bank, that’s why you do have a one per cent deeming rate at the lower level.”

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