00:06no can you just explain what are deeming rates and what this change means for people either
00:14about to retire or people who are retired if we go back in history when they brought
00:19the income test the trouble was how do you define income and they started with last year's
00:27returns so if your shares made 20 last year they said 20 that was terrible okay we'll change
00:35it by giving your financial assets such as your super and your shares and your bank accounts
00:40a deemed notional income and we'll assume that this is what you can get and it will sit
00:48low to encourage people to get a better return that was that was the purpose of it now the
00:54trick about deeming rates then when when the rates fell and fell and fell they were never
00:58brought back so they were so out of whack i think about a year ago it was still 0.25
01:05percent
01:06so they're trying to wind them back to what they should be and what they're doing now is every
01:12every six months when you get an automatic pension increase they also increase the deeming rate
01:20to bring it back so many pensioners the increase in deeming rates chops out their increase in
01:27the pension but but here's here's the thing deeming does not affect asset tested pensioners
01:34it only affects income tested pensioners so there are some pensioners who actually lost money
01:44due due to a combination of deeming and pension in last month's deeming changes they also affect
01:53aged care and some people are going to find their aged care costs are going up and the other third
02:00place is commonwealth seniors health card because the commonwealth seniors health card your eligibility
02:06is based on the deemed income from your super from which you're drawing a pension so it's income tested
02:13pensioners aged care and the cshc
02:18you
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