Rudd Government short changes pensioners with new deeming rates

November 11, 2008

North Coast pensioners are being short changed by Rudd Government changes to the deeming rate, Federal MP Luke Hartsuyker said today.

The deeming rate is the rate applied by Centrelink in assessing income from financial investments for the purpose of working out an individual’s pension entitlement.

 

The Rudd Government has announced that deeming rates have been cut from four per cent to three percent for the first $41,000 of a single pensioner’s financial investments and the first $68,200 for couples. The deeming rate has been reduced from six per cent to five per cent for the balance of the investments.

 

Mr Hartsuyker said the reductions in the deeming rate did not reflect recent decreases in the cash rate by the Reserve Bank.

 

“In recent months we have seen interest rates drop by two per cent,” Mr Hartsuyker said.

 

“If the Rudd Government was being fair to pensioners then they would have dropped the deeming rate by the same amount. Instead they have dropped it by half that amount.

 

“Pensioners and income support recipients are already struggling with increases in the cost of living, yet the Rudd Government has chosen to short change them with these new rates.

 

‘This will hurt many of the most disadvantaged in our community – the aged pensioners, the disability support pensioners, carers and those receiving the parenting payment.

 

“In particular this is another example of Kevin Rudd displaying a lack of compassion for pensioners  - many of who have already seen the value of their investments deteriorate over the past 12 months,” Mr Hartsuyker said.

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