The Minister for
Veterans’ Affairs, Alan Griffin, today said that lower
income test deeming rates would apply for veterans from payday
4 December 2008. This
is to reflect the recent reduction in interest rates and the
impact the global financial crisis is having on returns on
the investments of veterans. The
deeming rate will change from 4 per cent to 3 per cent for
the first $41,000 of a single pensioner’s financial investments
($68,200 for a couple). It will also shift from 6 per cent
to 5 per cent for the balance of financial investments over
these amounts. The changes are effective from 17 November
and will be included in payments made from 4 December 2008.
Department of Veterans’
Affairs payments affected by the deeming rate include service
pension and income support supplement. The
lowering of the deeming rates means that part rate pensioners
paid under the income test, with financial investments mainly
in term deposits, shares, managed investments and other accounts,
may receive an increase in their pension payments, to reflect
the reduction in their assessable income. Veterans
already paid at the maximum rate will have no change to their
pension payments.
This Rudd Government
decision acknowledges that many pensioners and social security
recipients who also rely on own-source income have been adversely
affected by the global financial crisis. "In addition
to the one off payments announced recently as part of the
Rudd Government’s $10.4 billion Economic Security Strategy,
this decision will help ease some of the financial pressure
on DVA pensioners,” Mr Griffin said. “I
have also asked DVA to update the value of pensioners’
listed securities and managed investments. As a result, on
November 20, nearly 18,000 DVA income support pensioners will
receive an average increase of $10 per fortnight.”
Individual results
are heavily dependent on individual circumstances.