Rudd cons aged pensioners by increasing the deeming rate to 4 per cent

March 17 2008

The Nationals Federal Member for Cowper, Luke Hartsuyker, said today the Rudd Government was conning tens of thousands of pensioners by increasing the deeming rate on pensions.

 

The Rudd Government has increased the deeming rate from 3.5 per cent to 4 per cent from March 20 for investments up to $39,400 and to 6 per cent for investments worth more than that..

 

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.

 

If the deeming rate income increases the pension decreases. Payments affected by deeming rates include means tested pensions, income support allowances and supplements paid by Centrelink and the Department of Veterans' Affairs.

 

Mr Hartsuyker said thousands of pensioners would be impacted by the half a percentage point increase in the deeming rate.

 

“On the one hand the Government is increasing the Utilities Allowance but on the other, they’re taking more investment income.  What the Kevin Rudd is doing is giving with one hand and taking with the other.

 

“This increase in the deeming rate comes at a time when the value of pensioner investments is crumbling in a very volatile market.

 

“This is another example of Kevin Rudd displaying a lack of compassion for seniors.

 

“Last week Mr Rudd was trying to scrap the carer’s and senior’s bonus. After sustained pressure Mr Rudd backed down from such a plan.

 

“This week he is conning pensioners through a sleight of hand. It’s a slap in the face for aged pensioners in the Cowper electorate.”

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