MEDIA RELEASE - TIME'S UP FOR GOVERNMENT TO REVIEW DEEMING RATES - FRIDAY, 21 JUNE 2019

TIME’S UP FOR GOVERNMENT TO REVIEW DEEMING RATES
 

With interest rates at record lows, the Government has run out of excuses for using pensioners to prop up their budget.

Unrealistic deeming rates are leaving pensioners out of pocket – and hurting those with modest savings the most.

The Reserve Bank has cut interest rates four times since 2015, with the cash rate now down to 1.25 per cent. But the Liberals and Nationals have kept the deeming rates at up to 3.25 per cent.


"It's hypocritical of the government, which was telling the banks to pass on all of the recent cut in official interest rates but at the same time they hold the deeming rate at the same level it's been since 2015."

[Ian Henschke, Chief Advocate, National Seniors – The Age 21/6/19]


How do they expect pensioners to find bank accounts or term deposits that are currently paying 3.25 per cent?

Pensioners are being hit twice. Once because of low interest on their savings, and again because their pension is being reduced.

The Liberals are cutting the pension by counting income many pensioners simply aren't getting.

Labor has been calling on the Government to urgently review the deeming rates so they are fair for pensioners.

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

FRIDAY, 21 JUNE 2019