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Deeming rates explained. What is deeming, how does it cut pensions, and why do we have it?

  • Written by Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University
Deeming rates explained. What is deeming, how does it cut pensions, and why do we have it?Deeming rates began as a way to stop people cheating in order to obtain the pension.Shutterstock

Now it’s the Coalition that’s being accused of a “retiree tax”.

As interest rates have come down over the past four years, the rate that retirees are “deemed” to have earned for the purpose of the pension income test...

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