Deeming and centrelink payments
When we talk about deeming, we make an assumption that your assets will earn a certain amount of income. For example, we consider the amount you invest into a term deposit as an asset and then assume (or "deem") that it will produce a certain income.
As at March 20, the deeming rate is 1.75% for financial investments up to $48,000 for single people, $79,600 for pensioner couples and $39,800 for each member of a couple receiving an allowance. If you have investments greater than these amounts, they will be deemed to earn 3.25%pa.
If you receive a Centrelink payment, you don't need to constantly keep us updated with the details of your investment - just tell us how much you've invested (you can do this at my.gov.au) and we'll take care of the rest. The fact that we deem your assets to make a certain return works in your favour because we don't mind if you make more.
Visit humanservices.gov.au/fis or call 132 300.
Justin Bott is financial information service officer, Department of Human Services.