In response to the wider financial downturn caused by the Coronavirus pandemic, the Government will be reducing the social security deeming rates by 0.5%. As of 1 May 2020, the upper deeming rate will be 2.25 per cent and the lower deeming rate will be 0.25 per cent.
From May 1 2020 the upper deeming rate for social security will be 2.25% and the lower deeming rate will be 0.25%. This represents a 0.75% cut from the previous rate used to determine support payments. This rate change is in response to poor financial conditions caused by Coronavirus having a negative impact on financial returns from superannuation at investments.
The change will benefit around 900,000 income support recipients, including around 565,000 people on the Age Pension who will, on average, receive around $105 more from the Age Pension in the first full year that the reduced rates apply. The changes will be effective from 1 May 2020.
More information will be provided as it becomes available.