MEDIA RELEASE: GOVERNMENT’S HYPOCRISY ON DEEMING RATES HURTING PENSIONERS

GOVERNMENT’S HYPOCRISY ON DEEMING RATES HURTING PENSIONERS

Labor is calling on the Government to urgently review the pension deeming rates, which are leaving Australian pensioners out of pocket.

On Tuesday, the Reserve Bank cut the cash rate to a record low of 1.25 per cent.

Yet, the Government’s deeming rates for the purposes of testing income for the pension remain as high as 3.25 per cent.

It is clear that the deeming rates no longer reflect the actual return that many pensioners are able to earn on their savings.

It has been over four years since the Government last adjusted the deeming rates.

In this time, the cash rate has fallen from 2.25 per cent to a record low of 1.25 per cent today. Standard term deposit rates are now two per cent or less.

And yet, the Government’s deeming rates hold steady at 3.35 per cent.

This week, the Treasurer demanded banks pass on the Reserve Bank’s rate cut to home loan customers in full.

Why won’t he do the same for pensioners? It’s hypocrisy.

By refusing to review its deeming rates for adjustment, the Government is short-changing pensioners.

SUNDAY, 9 JUNE 2019