As Aussies navigate through the complexities of managing finances, everyone's keeping an eye on government decisions that could help put extra cash in everyone's pockets.

With the Federal Budget proposal lodged, a recent decision got many Aussie seniors talking, as this could affect them significantly.

The government recently confirmed that deeming rates will remain frozen for another year.

This freeze was a part of the 2025 Federal Budget.

Around 460,000 pensioners may see the effect of this freeze, with an estimated $450 million staying in pensioners' pockets to help combat the rising cost of living.

Many Australians are keeping an eye on this year's Federal Budget as the elections loom closer. Image Credit: Budget Australia

Deeming rates are a critical factor in the calculation of Centrelink payments for pensioners.

These rates are assumed rates of return that the government applies to a person's financial assets—including shares, superannuation, and bank accounts.

If any of these assets earn more than its supposed deemed rate, the additional income may not be counted by the government when determining pension payments.

This rule could make a significant difference in how much pension seniors receive.

As of writing, the lower deeming rate is set at 0.25 per cent. Meanwhile, the upper rate is set at 2.25 per cent.

These rates have been in place since May 2020 and have traditionally followed the Reserve Bank of Australia's cash rate, which is currently at 4.10 per cent.

However, the government recently decided to keep these rates despite the cash rate increases.

Freezing deeming rates was first implemented by the former Coalition government in 2022.

For two years, these rates were frozen as a cost-of-living measure.

The Labor government then extended this freeze last year, and it should last until 1 July 2025.

This freeze could impact the Federal Budget—a one percentage point increase in deeming rates could save about $1.8 billion over four years.

For single pensioners, the first $62,600 of their financial assets are subject to the lower deeming rate of 0.25 per cent.

Any amount over this threshold is deemed to earn 2.25 per cent.

For couples where at least one person is receiving a pension, the first $103,800 of combined financial assets are deemed at the lower rate, with the remainder at the higher rate.

These thresholds are indexed every 1 July to reflect increases in the cost of living.

See how several key figures are reacting to the Federal Budget here:

Source: 9 News Australia/YouTube​

In addition to the freeze on deeming rates, the Labor government also made several promises that could further ease pensioners' financial burden.

These promises included a pledge to reduce the price of PBS-listed medicines to no more than $25 and a substantial energy bill relief, among others.

As Aussies continue to see the implications of the 2025 Federal Budget, it's crucial to stay informed about how these changes may affect you and your living situation.

Key Takeaways

• The government will be freezing deeming rates for an additional year, which could benefit about 460,000 pensioners.
• The decision was part of the 2025 Federal Budget measures to assist senior Australians with the cost of living.
• The current deeming rates, which have been in place since May 2020, are 0.25 per cent for the lower rate and 2.25 per cent for the upper rate.
• The freeze on deeming rates is said to be costly for the budget, potentially saving pensioners an estimated $450 million a year.

What do you think of this update? Will the freeze on deeming rates make a difference, or is it not enough to keep up with today's living conditions? What changes did you want to see in the Federal Budget? Share your thoughts and opinions with us in the comments section below.

 

[Ssearle]

why dont they look after the Pensioners, they helped to build this bloody country, and the little men in Government decide what to do with their money.... send it overseas, spend it on their travel, pay big bucks for their get togethers.... its shameful how the politicians waste the tax payers money.... and they they give themselves a pay rise.... and pensioners 60 cents a bloody week....

 

[Jest]

My medication supplied through aged care is Is almost $150 .00 per fortnight leave very little live off

you have to be on a heap of scripts to pay that much, and if this is so you are on the freebie list very quickly as I am.

 

[Scaveola]

My medication supplied through aged care is Is almost $150 .00 per fortnight leave very little live off

It sounds like you will reach the safety net early.

 

[Jenelle Maree]

Hello everyone, l am on a Disability Support Pension, l am a senoir. I read the information in the seniors discount club. I was expecting a CPI payment increase to my fortnightly pension on the 20th. There was no change in my pension. It was approximatrly $4. I still don’t understand why it wasn’t paid. I get this twice a year. I’m confused. Be kind to yourself. Bye

 

[Clarry Fisher]

All most people making comment on issues raised by the Seniors Discount appear to use it to complain rather than provide constructive comments. If you don't agree with something fair enough but lets hear your solution and the reason that it would work.

 

[Catherines]

Can you get a substitute that's on the PBS? You'd reach the limit very quickly.

We are lucky that we do not get a pension as our combined assets are over the threshold. However, to all the respondents here who have some grievance (and I mean legitimate grievance) over their interactions with CentreLink (or the lack of response from CentreLink) may I suggest a letter directly to the so-called head of that department (Mr Jorgens or whatever his name is!) asking for a direct reply and explanation of your questions.

I know it might just come back written by (perhaps) the second-in-charge or an administration officer but with his signature; heads of departments leave responses to general mail to their admin officers, most of whom in this CentreLink office seem to not care and give general answers hoping the writer to CentreLink will just go away! Your references to Mr J’s letter/s in the future might be answered eventually.

It won’t do much good continuing to phone or going into a CentreLink office because it will continue to get put back down to the bottom of the ‘waste basket’ file which, in so many cases we continue to hear of, do not get a satisfactory reply. I hope you can get some satisfactory answers and don’t have to jump through so many hoops. Good luck to all. Be persistent but not by phone - just bombard the head of department with letters and make him ‘work’ for his money.

 

[Janice McKay]

What about all the other Pensioners who don't receive this Deeming Rate due to not having anything to do with them.??????

 

[Sherril54]

We are lucky that we do not get a pension as our combined assets are over the threshold. However, to all the respondents here who have some grievance (and I mean legitimate grievance) over their interactions with CentreLink (or the lack of response from CentreLink) may I suggest a letter directly to the so-called head of that department (Mr Jorgens or whatever his name is!) asking for a direct reply and explanation of your questions.

I know it might just come back written by (perhaps) the second-in-charge or an administration officer but with his signature; heads of departments leave responses to general mail to their admin officers, most of whom in this CentreLink office seem to not care and give general answers hoping the writer to CentreLink will just go away! Your references to Mr J’s letter/s in the future might be answered eventually.

It won’t do much good continuing to phone or going into a CentreLink office because it will continue to get put back down to the bottom of the ‘waste basket’ file which, in so many cases we continue to hear of, do not get a satisfactory reply. I hope you can get some satisfactory answers and don’t have to jump through so many hoops. Good luck to all. Be persistent but not by phone - just bombard the head of department with letters and make him ‘work’ for his money.

Yes give them a hard time, like you often do to SDC members.

 

[addingko]

It’s campaign to vote them. No to big parties of Labor and Liberal including Greens.

 

[Rickcb63]

To tell you the truth I don’t want to hear about Centrelink I have been through enough with them.I lost my husband 14 months ago through Asbestos not one person could tell me if I am entitled to a pension I gave them everything they asked for they gave me some pension last October they wanted everything I had already gave them took everything into an office never heard from them. until this march 5 months are you joking I could not believe what they sent me it was all about me having Asbestos and my husband had to sign it they wanted where I was working what year I just cried. I rang them still waiting for them to call me back.Jolly

Are you aware of the money pool which is held by James Hardie for all the asbestosis claims??
It’s available, and you only need to do a google search to find it, and i strongly suggest that you go look at their requirements !
Far better than dealing with Centrelink’s bs.

 

[Rickcb63]

It’s campaign to vote them. No to big parties of Labor and Liberal including Greens.

Yep time for change is now !
No more 2 party preferred BS, liberal and labour and greens plus the teals need to be gone !
We need Australia back to the people

 

[Mudguard49]

All very well and good if I could get Centrelink to complete my age pension claim. Submitted August 2024 and still "In Progress". I am 76, still work parttime (According to C/L mine is a complex claim. I am actually seeking to reinstate my pension. This financial year to date I have earnt the staggering sum of A$6,000. Not happy Jan

 

[Milica]

To tell you the truth I don’t want to hear about Centrelink I have been through enough with them.I lost my husband 14 months ago through Asbestos not one person could tell me if I am entitled to a pension I gave them everything they asked for they gave me some pension last October they wanted everything I had already gave them took everything into an office never heard from them. until this march 5 months are you joking I could not believe what they sent me it was all about me having Asbestos and my husband had to sign it they wanted where I was working what year I just cried. I rang them still waiting for them to call me back.Jolly

Oh my lord they truly are pathetic! so sorry you had to go thru this at the same time as grieving, if you have the energy seek help from the seniors line - call them, to ask for help with all of the above and to make sure you have been paid backdated payment from when you first submitted a c/link application for payment - on top of this you can call the c/link complaints line to advise the distress and more that this has caused you in relation to what they sent you - you having asbestos, and where you where working! all the best - their are community services that can help in many ways - they C/Link need to get things right, even more so when a person is going thru the grieving process of profound personal loss.

 

[Milica]

All very well and good if I could get Centrelink to complete my age pension claim. Submitted August 2024 and still "In Progress". I am 76, still work parttime (According to C/L mine is a complex claim. I am actually seeking to reinstate my pension. This financial year to date I have earnt the staggering sum of A$6,000. Not happy Jan

Due for age pension at 67 and a half i think? It should be a lot easier to re-instate an age pension - i think a person can be off the pension for no more than 2 yrs, in that time the
original a/pension can be re-instated. Get help from a community source, call the seniors line in
your state, you can also call the complaints line @ C/Link to ask why is it taking so long - what 8 months now! are they going to backdate your payments from when you first tried to have it re-instated in August? if entitled - keep going by phone or in person at a c/link office if you can -
so you can get re-instated, good luck!

 

[Milica]

why dont they look after the Pensioners, they helped to build this bloody country, and the little men in Government decide what to do with their money.... send it overseas, spend it on their travel, pay big bucks for their get togethers.... its shameful how the politicians waste the tax payers money.... and they they give themselves a pay rise.... and pensioners 60 cents a bloody week....

It is more than s... - i like the little men, (school yard boys) - they do waste the tax payers money, they haven't got a brain between them - it's all about getting their pay and when their term is up getting a lifetime pension - which is a considerable amount compared to the layman, after only doing a certain amount of time in term - what about as you say the pple that have worked all their lives and contributed in building this great country of ours! not the ones who have just done x amount of a term in parliament, getting astronomical pays and all the bonuses - it should be the other way around, where they receive our pension amount, and the hard working pple of this country should receive their pension/lifelong. It is not a fair system, penisoners are struggling daily, unless a person is affected directly, or are living & experiencing what the age pensioners are, the care factor appears to be zero!

 

[Annemarie]

My medication supplied through aged care is Is almost $150 .00 per fortnight leave very little live off

If you are paying that much for your medication then you are either on an awful lot of meds, your meds are not listed on the PBS, or a combination of both. If that's the case, you need to have your meds reviewed. I take 11 prescription meds + 6 (doctor suggested) supplements, and my cost is nowhere near that.

 

[atomace]

If you work, you should only pay Tax on the money that you get from employment, not add your pension amount, into your taxable Income.

 

[StarTrekker]

Just before my husband turned 67 Centrelink asked if he wanted to be moved from DSP to Aged Pension. He said no. Nothing has changed and he didn't have to go through a heap of hoops for something that he has already has.
Now Centrelink is asking me if I want to be moved from Carer Payment to the Aged Pension (67 in June)./ I said no. If I had said yes I would lose $1800 in Carer Supplement. That is something I cannot afford to lose.

 

[StarTrekker]

Hello everyone, l am on a Disability Support Pension, l am a senoir. I read the information in the seniors discount club. I was expecting a CPI payment increase to my fortnightly pension on the 20th. There was no change in my pension. It was approximatrly $4. I still don’t understand why it wasn’t paid. I get this twice a year. I’m confused. Be kind to yourself. Bye

It all depends on when you get your fortnightly payment. The 20th is the starting point and we are always paid in arrears. You might get something in the first payment after the 20th but definitely in your second payment.

 

[Granty boy]

The majority of those employed there are as useful as Tits on a Bull....they ask for the same information you have already supplied over & over. After stating i have lived in my current home for over 20 years They asked me do you still live at this ....... address, My answer was..Are you serious when i lived there my children where 9 & 7 yrs old they are now 44 & 42, & now i have 5 grandchildren. Then they asked me do you still work for this company...... My response was in 2019 i gave you people a Separation Certificate & applied for a Health care card as i had Retired...My request for that was denied! The reason they gave me was...Your wife is earning $32.00 an Hour ? Can you believe that ? i have worked very hard all my life & paid my taxes all that time and that's how they treat you. Any how when the interest rates kept rising i had to find a casual job just to be able to survive & try to pay our bills, i am still working now casually. After i reached 67 in January 2025 i then applied for an aged pension . last week i got emailed that my Pension has been approved and i will receive $655.00 a Fortnight...and have to continue to report my income fortnightly. My body is falling apart, and just recently my wife has been deemed T.P.D. & CANT WORK AGAIN..Now we are trying to get some assistance from Centrelink. she is 62..Who will employe her with Disabilities. In the mean time we hopefully wont starve to death or lose our house! this is Total B.S.