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 1 July 2010:

• if you are single and getting either a pension or allowance, the first $43,200 of your financial investments is deemed to earn income at 3% per annum and any amount over that is deemed to earn income at 4.5% per annum.
• if you are a member of a couple:
  • if at least one of you is getting a pension, the first $72,000 (combined) of your and your partner's financial investments is deemed to earn income at 3% per annum and any amount over that is deemed to earn income at 4.5% per annum, or
  • if neither of you is getting a pension, the first $36,000 for each of your and your partner's financial investments is deemed to earn income at 3% per annum and any amount over that is deemed to earn income at 4.5% per annum.

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

• Financial Information Service publications - including Deeming factsheets
• Income and assets tests table - provides details of income or assets tests for individual payments
• Income test for pensions - provides details of the income test for Centrelink pensions
• Phone Centrelink on 13 2300 or visit your nearest Centrelink Customer Service Centre