Centrelink Deeming Test – 2024/25 – Rates and Thresholds now released.

The deeming rates are 0.25% (low rate) and 2.25% (high rate) and the deeming thresholds are $62,600 (single) and $103,800 (Couple- combined).

In the 2024 Budget the Government announced that the deeming rates for 2024/25 would not be increased but remain at the current rates of 0.25% and 2.25%. Given that the deeming rates are intended to be a proxy for current interest rates, not increasing them, and given the recent increases in interest over the last 24 months, it is a significant concession for self-funded retires.

Additionally, the Government has allowed the normal indexation of the deeming thresholds to apply for the 2024/25 financial year. The threshold for single pensioners has increased from $60,400 to $62,600. The deeming rate for pensioner couples has increased from $100,200 to $103,800. Deeming rates are indexed each 1 July by reference to the increase in the consumer price index.

The Deeming Test is applied by Centrelink when assessing entitlement to the age pension using the Incomes Means Test. The test determines the amount of income to be derived from certain types of assets including superannuation accounts.