Resetting the asset test deeming rate thresholds
20 September 2017
The deeming thresholds will be reset to $30,000 for singles and $50,000 for couples from 20 September 2017 (for both pensioners and allowees). Current thresholds are $46,600 for singles, $77,400 for couples and $38,700 for members of allowee couples.
GEM Capital Comment
This measure effectively increases the amount of assessable income from deemed financial investments.
The proposal will impact the social security entitlements of income test affected pensioners and allowees. Additionally, older people subject to income tested residential aged care or home care fees may also be affected.
This measure will also impact holders of account based pensions which are impacted by the recent legislative change to deem account based pensions from 1 January 2015.