Single
Couple (at least one pensioner)
Couple (neither is a pensioner)
Lower Rate (0.25%) applied to:$0.00
Higher Rate (2.25%) applied to:$0.00
Total Annual Deemed Income:$0.00
Fortnightly Deemed Income:$0.00
function calculateDeeming() {
// Inputs
var status = document.getElementById('relationshipStatus').value;
var assetsInput = document.getElementById('financialAssets').value;
var assets = parseFloat(assetsInput);
// Validation
if (isNaN(assets) || assets < 0) {
alert("Please enter a valid positive number for Financial Assets.");
return;
}
// Current Deeming Rates (Subject to government changes, current as of freeze)
var lowerRate = 0.0025; // 0.25%
var upperRate = 0.0225; // 2.25%
// Thresholds
var threshold = 0;
if (status === 'single') {
threshold = 60400;
} else if (status === 'couple_pensioner') {
threshold = 100200;
} else {
// Non-pensioner couples usually have a threshold of $100,200 for deeming allowance
// calculations regarding payments like JobSeeker, but we adhere to standard deeming thresholds here.
threshold = 100200;
}
// Logic
var deemedIncome = 0;
var lowerPortion = 0;
var upperPortion = 0;
if (assets <= threshold) {
lowerPortion = assets;
deemedIncome = assets * lowerRate;
} else {
lowerPortion = threshold;
upperPortion = assets – threshold;
deemedIncome = (threshold * lowerRate) + ((assets – threshold) * upperRate);
}
var fortnightlyIncome = deemedIncome / 26;
// Display Results
var formatter = new Intl.NumberFormat('en-AU', {
style: 'currency',
currency: 'AUD',
minimumFractionDigits: 2
});
document.getElementById('resLowerAmount').innerText = formatter.format(lowerPortion);
document.getElementById('resHigherAmount').innerText = formatter.format(upperPortion);
document.getElementById('resAnnual').innerText = formatter.format(deemedIncome);
document.getElementById('resFortnightly').innerText = formatter.format(fortnightlyIncome);
document.getElementById('deemingResult').style.display = 'block';
}
Understanding Deeming Rates and Your Pension
The Deeming Rate Calculator is an essential tool for Australian pensioners and benefit recipients to estimate how Centrelink assesses income from their financial assets. Rather than calculating the actual returns (interest or dividends) you earn, Centrelink uses a set of rules called "deeming" to assume a specific rate of return.
What is Deeming?
Deeming is a set of rules used to assess income from financial assets for social security purposes. It assumes that financial assets are earning a certain amount of income, regardless of the actual return they are generating. If your actual investment return is higher than the deemed rate, the extra amount is not assessed as income, which is a benefit to you. Conversely, if your return is lower, you are still assessed at the deemed rate.
Current Status: Deeming rates have been frozen at their current low levels until 30 June 2024 to assist pensioners with rising cost of living pressures.
Which Assets are Deemed?
The deeming rules apply to a wide range of "financial assets." It is important to input the total current market value of these assets into the calculator:
Savings accounts and term deposits.
Managed investments, loans, and debentures.
Listed shares and securities.
Some income stream products (depending on when they were purchased).
Gifts of money or assets (if they exceed gifting limits).
How Deeming is Calculated
The calculation is based on a two-tiered system. A lower deeming rate applies to your assets up to a certain threshold, and a higher deeming rate applies to the value of assets above that threshold.
For Singles
The first $60,400 of your financial assets is deemed to earn 0.25% per year. Anything over $60,400 is deemed to earn 2.25%.
For Couples (at least one pensioner)
The first $100,200 of your combined financial assets is deemed to earn 0.25%. Anything over $100,200 is deemed to earn 2.25%.
Why Use This Calculator?
Knowing your deemed income is crucial because it forms part of the income test used to determine your eligibility for the Age Pension, Disability Support Pension, and other Centrelink payments. If your deemed income (plus other income) is high, your pension payment may be reduced.
Maximizing Your Position
Since deeming rates are currently quite low relative to market interest rates, many pensioners find that their actual returns on term deposits or high-interest savings accounts exceed the deemed rate. This "excess" income is not counted by Centrelink, allowing you to earn more real income without affecting your pension entitlement.