MEDIA RELEASE - GOVERNMENT MUST REDUCE DEEMING RATES - WEDNESDAY, 3 JULY 2019

GOVERNMENT MUST REDUCE DEEMING RATES
 

In light of yesterday’s rate cut by the Reserve Bank, Labor is calling on the Liberals and Nationals to urgently reduce the deeming rates and ease the pressure on pensioner’s budgets.

The Reserve Bank has cut interest rates five times since 2015, with the cash rate now down to just 1 per cent. But the Liberals and Nationals have kept the deeming rates at up to 3.25 per cent.

The deeming rates determine how much the Government assumes pensioners earn on their savings – and are used to calculate how much pension a person receives.

Up to 627,000 age pensioners, who are on a part-pension because of the income test, are impacted by the Government’s refusal to reduce deeming rates.

The gap between interest rates and the deeming rates is growing – and the Liberals and Nationals are doing nothing about it.

Scott Morrison is counting income many pensioners simply aren’t getting.

How does Scott Morrison expect pensioners to find term deposits or other secure investments that pay anything like 3.25 per cent?

This is a double-whammy for pensioners. It means lower earnings on savings, and reduced pension payments.

With interest rates at record lows – the Government has run out of excuses.

Every day the Morrison Government refuses to reduce the deeming rates is another day they are short-changing pensioners.

WEDNESDAY, 3 JULY 2019