On 20 August 2025, the Minister for Social Services announced that the Australian Government would start to increase deeming rates from their relatively low levels introduced during COVID-19 to levels that more accurately reflect the returns pensioners and other payment recipients can reasonably access on their financial assets. From 20 September 2025, a deeming rate of 0.75% will apply to financial assets under $64,200 for singles and $106,200 for couples combined. Assets over this amount will be deemed at a rate of 2.75%.
As this policy will likely have more than minor impacts, an Impact Analysis (IA) was required to be prepared. A draft Impact Analysis was provided to decision-makers earlier in the process, but was not finalised and assessed by the Office of Impact Analysis (OIA) before announcement. Consequently, the OIA has assessed the IA for the Changes to Social Security Deeming Rates was insufficient to meet the requirements as set out in the Australian Government Guide to Policy Impact Analysis. Accordingly, a post-implementation review is required to be completed within two years of implementation of the changes.
The Department of Social Services has subsequently prepared an IA which is published here for transparency purposes only. The OIA has not assessed this IA.
The link to the media release is below.
Changes to social security payments from September 20 | Department of Social Services Ministers