THOUSANDS OF RIVERINA AND CENTRAL WEST RESIDENTS BETTER OFF FROM CUTS TO DEEMING RATES

MORE than 7,000 people in the Riverina and Central West will benefit from a multimillion-dollar boost due to deeming rate cuts.

Riverina Nationals’ MP and Deputy Prime Minister Michael McCormack said the Federal Government was listening to concerns and delivering.

“This decision means a world of difference for those who are affected by deeming rates, including 7,280 across the Riverina electorate,” Mr McCormack said.

“The Liberal and Nationals’ Government has made sensible moves to ensure older Australians receive the support they need.

“We understand pensioners have finely balanced finances and this decision will put more money in the pockets of older Australians.”

Minister for Families and Social Services Senator Anne Ruston said the changes would benefit about 628,000 age pensioners and more than 455,000 people receiving other payments.

“The lower deeming rate will decrease from 1.75 per cent to 1.0 per cent for financial investments up to $51,800 for single pensioners and $86,200 for pensioner couples. The upper deeming rate will be cut from 3.25 per cent to 3.0 per cent for balances over these amounts,” Minister Ruston said.

“While 75 per cent of aged pensioners are not affected by deeming this decision recognises that it is an important issue for those who are.”

Under the new rates age pensioners whose income is assessed using deeming will receive up to $40.50 a fortnight for couples, $1053 extra a year, and $31 a fortnight for singles, $804 a year.

Changes to the deeming rate will also benefit people receiving other income tested payments including the Disability Support Pension and Carer Payment, and income support allowances and supplements such as the Parenting Payment and Newstart.

The decision will take effect from September in line with the regular indexation of the pension and will be backdated to July 1.