Changes to Deeming Rates - March 2026
Written and accurate as at: Apr 17, 2026 Current Stats & Facts
From 20 March 2026, the Government increased the deeming rates that Centrelink uses to work out how much income it assumes you earn from your savings and investments.
For some people, this change may reduce their Age Pension, even though nothing has changed with their actual investments.
What are deeming rates?
Deeming rates are used by Centrelink to estimate income from financial assets, such as:
- Bank accounts and term deposits
- Shares and managed funds
- Account‑based superannuation pensions
It doesn’t matter what income you actually earn — Centrelink applies the deeming rates instead.
What changed on 20 March 2026?
From 20 March 2026, deeming rates increased as follows:
Financial Assets Before 20/03/2026 From 20/03/2026
First $64,200 (Single) 0.75% 1.25%
First $106,200 (Couple) 0.75% 1.25%
Above $64,200 (Single) 2.75% 3.25%
Above $106,200 (Couple) 2.75% 3.25%
These new rates apply automatically — you don’t need to do anything.
Why does this matter?
Higher deeming rates mean Centrelink assumes your investments earn more income. This can reduce your Age Pension under the income test, or move you from a full Age Pension to a part pension.
Case Study:
Teresa is a single homeowner with $250,000 in financial assets in addition to her home. Before 20 March 2026, Teresa was eligible for the full Age Pension under both the income and assets tests.
However, from 20 March 2026, the deemed income assessable on her $250,000 assets will increase to $6,841 per year ($263 per fortnight). As a result, Teresa’s Age Pension will reduce by $23 per fortnight (about $600 per year) even though her circumstances have not changed.
What should you do next?
If you have seen a reduction in your Age Pension due to the increased deeming rates or you are close to the full pension/part pension thresholds, it may be worth contacting us for a review of your situation to ensure you’re still maximising your entitlements.
