Effective from 20 September 2026
The Australian Government has announced an increase to the deeming rates used to assess income from financial investments.
From 20 September 2026 to 19 March 2027, the deeming rates will increase by 0.5 percentage points.
New Deeming Rates
| Person / Couple | Asset Threshold | Deeming Rate |
|---|---|---|
| Single person | First $66,800 | 1.75% |
| Above $66,800 | 3.75% | |
| Couple (combined) | First $110,600 | 1.75% |
| Above $110,600 | 3.75% |
What Could This Mean for You?
The increase may affect the assessment of income for a range of government payments and aged care arrangements.
- Age Pension and other Centrelink/DVA means-tested payments
Deeming rates are used when assessing income from financial assets for certain payments. More information is available from Services Australia – Deeming. - Refundable Accommodation Deposits (RADs) and Refundable Accommodation Contributions (RACs)
The interest rate applied by aged care providers to refunded RADs/RACs will increase to 3.75%. Further information is available from the Australian Government Department of Health, Disability and Ageing. - Means Tested Amount (MTA) assessments
The deeming rate is also relevant when assessing contributions towards residential aged care. Details on aged care fees and assessments can be found through Australian Government – Residential Aged Care. - Commonwealth Seniors Health Card
Deeming may be used when assessing income from account-based pensions for some Commonwealth Seniors Health Card applicants. See Services Australia – Commonwealth Seniors Health Card for further information.
What Should You Do?
If you receive an Age Pension, Commonwealth Seniors Health Card, or other means-tested payment, or are considering residential aged care, the increase may affect your assessment.
If you are unsure how these changes may affect your circumstances, please contact Holzworth Partners to discuss your situation.
Need help with aged care finances?
If you are considering entering residential aged care or reviewing how you are currently paying for your accommodation, Holzworth Partners can help you understand the financial options available to you.
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This information is general in nature and does not take into account your individual circumstances. Please contact us before making any decisions based on this information.