In this guide
Deeming rates to rise
From 20 September 2025, the Government will lift the deeming rates used in Centrelink’s income test. 0.75% (previously 0.25%) will apply to the first $64,200 of financial assets for Singles (and $106,200 for Couples combined), with 2.75% (previously 2.25%) on amounts above those thresholds.
This ends the COVID-era freeze and is the first change to deeming rates since 1 May 2020. The change will increase the assessed income for people with financial assets, which may reduce their Age Pension.
The Minister for Social Services, Tanya Plibersek said that deeming rates were frozen at artificially low levels as an emergency COVID-19 measure and the government extended the freeze to “help shield age pensioners and other income support recipients while the economy recovered. As Australians begin to feel the positive impacts of inflation easing, the Government will now gradually return deeming rates to pre-pandemic settings – that is, to reflect rates of return that pensioners and other payment recipients can reasonably access on their investments.”
More increases may be on the way since the government media release mentions that “changes to deeming rates will happen at the same time as the indexation of payments, and increases will be staged.”
At the same time the full Single rate for the Age Pension rises $29.70, and $22.40 each for a Couple. There will also be increases to the income limits and assets limits for a part Age Pension.
Learn more about deeming rates, the latest Age Pension rates as well as changes to the income and assets tests.
Government releases consultation papers on retirement
The Federal Government has released two consultation papers on key planks of its retirement phase reforms and is asking for feedback.
The industry has until 18 September to make submissions on the Guidance on best practice principles for superannuation retirement income solutions paper and until 5 September to make submissions on the Retirement Reporting Framework: Increasing transparency for members paper.
“These reforms are all about ensuring there is as much of a policy and product focus on the retirement phase as there is on the accumulation phase,” treasurer Jim Chalmers and assistant treasurer and minister for financial services Daniel Mulino said in a joint statement.
The Financial Services Council (FSC) said the two papers were important steps but urged the government to ensure that individual outcomes remain the focus of national retirement policy.
“No two people’s retirements are the same and should not be treated as such by the government or superannuation funds. Retirement policy should focus on ensuring that people are given the tools to make decisions that steer them towards the kind of retirement that they want. This includes access to guidance, financial advice and a range of products to help shape their futures,” FSC chief executive officer Blake Briggs said.
In the consultation papers, the government says that the Retirement Reporting Framework will require trustees to report annually on a “series of indicators on their products, services and offerings, as well as metrics on their members’ behaviour, to understand how trustees are driving improved retirement outcomes.”
“Performance testing of retirement products would lead to adverse outcomes, given that retirement is personal and should not be treated uniformly,” Briggs said.
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