As a result, the deeming rate now applies to these super pensions that retirees can receive tax free, provided they are over 60 years of age and meet a superannuation condition of release.
What investments are included in the social security deeming system?
On 1 July 1996 the deeming legislation was extended to include the following financial investments:
- bank, building society and credit union accounts and term deposits.
- managed investments, loans and debentures, and.
- listed shares and securities.
How does deeming work for pensioners?
The deeming thresholds are as follows: For singles - Amounts up to $53,600 are deemed to earn the lower deeming rate of 0.25%. That portion over $53,600 is deemed to earn the higher deeming rate of 2.25% For couples - Amounts up to $89,000 (combined) are deemed to earn the lower deeming rate of 0.25%.
