What is deeming and how does it work?

Deeming is a method of assessing income from investments for income test purposes. The method uses an assumed rate of income from investments to assess your income for pensions and allowance income tests.

The following information will help you work out the deeming rates that may apply to you. The information is correct as at 1 July 2007.

Single people
Add up the value of all your financial investments*. The first $38,400 is deemed to earn 3.5 per cent. Anything over $38,400 is deemed to earn 5.5 per cent.

For couples on pensions
Add up the value of all your financial investments*. The first $63,800 is deemed to earn 3.5 per cent. Anything over $63.800 is deemed to earn 5.5 per cent.

Allowances for couples not on pensions
Add up the value of all your financial investments*. The first $31,900 each is deemed to earn 3.5 per cent. Anything over $31,900 each is deemed to earn 5.5 per cent.

* Not all investments are subject to deeming. You should contact your financial adviser or Centrelink for further details.