Deeming

How does deeming work?

Under the pension income test and allowance income test, any income you get from financial investments is assessed under one simple set of rules, known as deeming. Deeming assumes your financial investments are earning a certain rate of income, no matter what income they are actually earning.

From 17 November 2008:

if you are single and getting either a pension or allowance, the first $41,000 of your financial investments is deemed to earn income at 3% per annum and any amount over that is deemed to earn income at 5% per annum
if you are a member of a couple and
- at least one of you is getting a pension, the first $68,200 (combined) of your and your partner's financial investments deemed to earn income at 3% per annum and any amount over that is deemed to earn income at 5% per annum; or
- neither of you is getting a pension, the first $34,100 for each of your and your partner's financial investments is deemed to earn income at 3% per annum; any amount over that is deemed to earn income at 5% per annum.

Please Note: Deeming rates are set by agreement between the Ministers for the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), and the Department of Education, Employment and Workplace Relations (DEEWR).

More information

The Income and Assets Tests Table provides information regarding the income or assets tests for Centrelink payments.
Phone Centrelink on 13 2300 or contact your nearest Centrelink Customer Service Centre.
View the deeming information in the Financial Information Service Factsheets.

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