Parliament House Canberra ACT 2602
Telephone 02 6277 7820 Facsimile 02 6273 4140
The Hon Alan Griffin MP
Minister for Veterans’ Affairs
VA002
18 January 2009
DEEMING RATE TO BE LOWERED
Many veterans with investment income will benefit from a lower income test deeming rate to
apply from 27 January 2009, the Minister for Veterans’ Affairs, Alan Griffin, said today.
The reduction in the rate reflects the ongoing reductions in interest rates and the impact of the
global financial crisis on investments.
“Around 40,000 DVA pensioners will benefit when the deeming rate is reduced from five to four
per cent for financial investments over $41,000 for a single pensioner and $68,200 for a
couple,” Mr Griffin said.
The deeming rate for the first $41,000 of a single pensioner’s financial investments ($68,200 for
a couple) will remain unchanged at three per cent – this rate was lowered in November 2008.
The higher deeming rate will be four per cent for the balance of financial investments over these
amounts. These changes are effective from 27 January 2009 and will be included in payments
made from 12 February.
Department of Veterans’ Affairs service pensions, income support supplements and social
security age pensions paid by DVA will be affected by this change.
Lowering the deeming rate means that those part-rate pensioners paid under the income test
who have financial investments such as term deposits, shares or managed investments may
receive an increase in their pension payments to reflect the reduction in their assessable
income.
Income support pensioners who are already paid at the maximum rate and those with financial
investments below $41,000 (if single) or $68,200 (if a member of a couple) will have no change
to their pension payments. Pensions paid under the assets test will also not be affected.
“This move acknowledges that many pensioners who partially rely on own-source income have
been adversely affected by the global financial crisis, leading to lower returns on financial
assets,” Mr Griffin said.
DVA pensioners who would like to discuss their rate of payment should contact the Department
on 133 254.
Media inquiries: Laura Ryan 0437 863 109
The VVCS – Veterans and Veterans Families Counselling Service can be contacted 24 hours a day, seven days a
week on 1800 011 046.
To receive the Minister’s media releases automatically by email subscribe at minister.dva.gov.au/subscribe.htm
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