Age Pension Deeming Rates - UNFAIR RULES

[@AboutRetirementTV]

Do you agree or disagree with my thoughts about deeming rules for Income Test?

[@lynathfairfax966]

Definitely agree with you . Is there anyone /group fighting for changes?

[@Dubhghaill]

AGREE.......

[@helenmeikle2388]

Yes the Deeming rules are so unfair. I am watching the Value of my Superannuation Fund go backwards in returns but that isn't accounted for. Thank you for all your clear wonderful videos Kathryn!

[@lyndarowe3441]

I agree it is totally unfair My question is why is noone lobbying the govt about it Elderly people with often declining mental capacity are expected placed in a position of complexity and vulnerability regarding their financial security If rules are set in place that are fair and that is eroded over time then the public are being shafted Even if interest rates and deeming rates are equal it does not allow for the time value of money and is eroding What can be done?

[@Robyn19fnq]

As I am getting closer to retirement, there is no word more likely to make me bang my head against a wall than 'deeming'. As a taxpayer, I declare all interest earned and as I have paid tax throughout the year (and sometimes in advance as well), I need to declare all income. Surely, if I have no income apart from a pension (I hope), I should not pay tax, deemed or not on a nil income? So frustratingly confusing! Thank you for trying to explain this rude word Katherine, but I'm afraid I still cringe at the word.

[@soniadalbon7103]

I have just discovered your videos and really love them, they are so helpful. I am a single 70yr old aged pensioner, receiving the full aged pension and a monthly minimum percentage income from my pension superfund of $100,000. I own my home with the usual basic assets of furniture & car. I am in the process of receiving an inheritance and am rather concerned how to manage this without losing my pension.. Do I keep it in a low interest bearing bank account where i can use it to improve my home and current circumstances or invest it for a better return.. I don't want Centrelink telling me what I should do with my money. Unfortunately from past experience, I just don't trust them.

[@AboutRetirementTV]

You Sonia together with many other retirees. Unfortunately Centrelink office is understaffed, under lots of pressure, hardly trained for the job, as the funds allocated by the government are low. And this is the outcome. Sonia, only by reading this basic information, there are number of choices for you going forward with each providing a different outcome. I really think it is time for you to reach out and get the full advice on those choices, so you can benefit the most from both: your inheritance as well as hopefully continue receiving the Age Pension. Feel free to reach out, Katherine

[@MrLescol]

Katherine - its really simple - all get an OAP BUT all pay tax -- of course many in missinglink will be dismissed but so ?? Thanks

[@euniceaustin903]

Thank you. I think the deeming rates are totally unfair........the Pensioner must take Great RISKS in order to even get the deeming rate for their funds. Thus the possibility of loss is extreme However, I think the new Government has reduced the deeming rate just recently.

[@TheDinger]

Hi Katherine. I'm hoping to top up my income in retirement with dividends from shares. Consider the 2 following scenarios. (assume no superannuation) 250k in shares that pay 6% dividends, with little growth, just enough to probably keep the value at 250k. Income from dividends is 15k, but only deemed at $176 a fortnight according to current deeming rules for a single person. (Can earn that without affecting pension, and can have 270k in assets other than PPOR, so the 250k in shares wont affect anything either) 250k in shares with 6% growth and no dividends. So after a year the value is 265k. Can I withdraw 15k in cash to use for whatever and have no change in my pension? Are these scenarios equal to the government? I'm wondering which scenario is best in retirement phase. Preferably I would like a 50/50 split between growth and dividends, but want to go whichever way will work best for me to maximise income and minimise losses. Thank you.

[@AboutRetirementTV]

Hi Tom, thank you for the question, I think it is a great case scenario. I have not been speaking about share investing as yet, this has always been my plan, I love investing into a great share portfolio, so I might "steel" your example and prepare a different video about that. Would that help?

[@TheDinger]

@@AboutRetirementTV that would be great. Would love to hear your ideas and strategies. Thanks.

[@ivankrolo4626]

@@AboutRetirementTV It would be nice just to answer the question in here! isn't that the purpose of the KZbin_Forum ????

[@AboutRetirementTV]

@@ivankrolo4626 Possibly, but the video will help many, reply to the question by few, and I believe the first is a better outcome for all. This video is coming, so if this is your interest Ivan, please watch.

[@AboutRetirementTV]

Hi tom, apologies for delay in creation of your topic, the video about shares comparison is coming now

[@downtoearth1950]

our pension rates are well down the list of OCDE countries

[@omnipresent1215]

Very disheartening considering we are also one of the highest taxing countries per individual.

[@danielphilips2226]

Well done, thanks heaps

[@AboutRetirementTV]

Thank you Daniel, happy it helps 😄

[@bilianatrickovic2574]

Does super funds also count as deeming income when you retire?

[@AboutRetirementTV]

Hi Biliana, thank you for watching and for your question. Once you reach the Age Pension age (eligibility for Age Pension) then yes, your super is subject to income and asset test. If you are retiring now, yes - your super / pension is deemed.

[@philjones2981]

Does the actual interest earned in a bank account form part of the income test although the asset has already been deemed?

[@AboutRetirementTV]

No, Centrelink does not count your real rate of return, but only deemed rate on your bank account savings.

[@Dubhghaill]

Hi just found your channel, Are my tool's I use at home, eg: welder, Log splitter, grinders, drills, guns, all deemed and asset tested ?? Thanks

[@AboutRetirementTV]

Hi Jo, no those are all part of your home content

[@Dubhghaill]

@@AboutRetirementTV O, I thought home content was asset tested 🤔 I think I need to come and have a talk with you....

[@AboutRetirementTV]

@@Dubhghaill Yes, it is subject to assets test as part of your home contents, but it is not subject to deeming

[@omnipresent1215]

@@AboutRetirementTV so in other words, they get him one way or the other yes/no?

[@sextoncardew903]

Lets say it the way it is. Australia has the most brutal system for retirees in the western world. The only people our politicians seriously look after are themselves.

[@bretthorwood9396]

I agree the deeming rate is unfair. One thing here though is if you can start investing in the stock market by using the dollar cost averaging method you actually spread your losses out over time. I've always considered longer term investments in the stock market as the way to go. Longer term like five years instead of being a day trader.

[@tecnaman9097]

Totally agree with you about the deeming rate. It's forcing retirees to invest in less secure investments at a time when financial markets are volatile. I'm watching this in June 2022. The Liberals are no longer in power, so it'll be interesting to see if any significant change is implemented by the new Labor government to peg deeming to the prevailing term deposit rates offered by the banks and building societies ( Government guaranteed up to 250K per depositor). Labor has said it will put the 'human' back into Human Services. Like all politician's promises, we'll have to wait and see...but don't hold your breath.

[@aussietaipan8700]

Governments always double dip when ever they can. With all the rules and restrictions they are crucifying self retirees and its only worse.

[@alanmarshall560]

What is the best safe way to invest money and also which type of investment, without effecting my pension.

[@AboutRetirementTV]

I don't really understand the question, all investments will be counted under income and assets test, it is only the case that each might be under different rules and different calculations.