Deeming rates explained. What is deeming, how does it cut pensions, and why do we have it?
- Written by Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University
Deeming rates began as a way to stop people cheating in order to obtain the pension.ShutterstockNow it’s the Coalition that’s being accused of a “retiree tax”.
As interest rates have come down over the past four years, the rate that retirees are “deemed” to have earned for the purpose of the pension income test...