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Social security


Section: 9.13

Deeming provisions are applied for income test purposes, which assumes a certain amount of income on financial investments. The amount of assumed income is then counted for income test purposes regardless of the actual income earned on the investments.

The rates used to calculate the amount of assumed income for income test purposes can be downloaded from

Deeming rates - effective 1 July 2017

Financial assets of single pensioner  (or allowee) Deeming rate
First $50,200 1.75%
Excess over $50,200 3.25%
Financial assets of a pensioner couple (if at least one member is an age pensioner) Deeming rate
First $83,400 (combined income) 1.75%
Excess over $83,400 (combined income) 3.25%
Financial assets of an allowee couple (neither of whom are age pensioners) Deeming rate
First $41,700 (each) 1.75%
Excess over $41,700 (each) 3.25%

Pensioner couple
A pensioner couple is a couple where both partners are receiving a pension; or a couple where one person receives the pension and one person receives an allowance.

Financial assets include:

  • cash, bank, building society and credit union accounts
  • term deposits, cheque accounts and friendly society bonds
  • managed investments
  • investments in superannuation where the owner is over Age Pension or Age Service Pension age
  • listed shares and securities and shares in unlisted public companies
  • loans, debentures and bonds
  • gifted assets above the allowable gifting value of $10,000 per financial year or $30,000 over a five-year period
  • gold and other bullion
  • short-term (five years or less) income streams
  • certain account-based income streams from 1 January 2015.

Financial assets do NOT include:

  • the home or its contents
  • a lump sum accommodation bond/payment for residential aged care
  • cars, boats and caravans
  • coin or stamp collections
  • investments in superannuation funds, ADFs and deferred annuities where the owner is under Age Pension or Age Service Pension age
  • standard life insurance policies
  • holiday houses, farms or other real estate
  • income stream products. However from 1 January 2015, account-based pensions may be subject to deeming.

Last modified: Friday, January 12, 2018