Five years after being slashed to historical lows as a pandemic cost-of-living measure, deeming rates have increased again.

Deeming is part of the income test for Centrelink payments, and the rate affects how much a recipient's income from assets reduces their fortnightly payments.

Pensioners are the largest group affected by changes to deeming rates — meaning some retirees may see a decrease in their next pension payment.

Let's unpack what the new changes mean.

When did the changes happen?

The new deeming rates came into effect on Saturday, alongside the indexation of a bunch of Centrelink payments, including the age pension .

So recipients should see the changes in their next payment.

The federal government announced these changes back in August .

What is deeming?

Deeming is

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