Your savings are now assumed to earn more
The deeming rates that Services Australia uses to assess income-tested payments went up on 20 September 2026. The lower rate rose from 1.25% to 1.75%, and the higher rate rose from 3.25% to 3.75%.
Where the two rates apply
The lower rate covers the first $66,800 of financial assets for a single person, or the first $110,600 combined for a couple. Anything above those thresholds is deemed to earn the higher rate. The thresholds did not change on 20 September. They were last indexed on 1 July 2026.
Deeming applies to financial assets such as bank accounts, shares and managed funds. It does not apply to the family home.
Why a higher rate can mean a smaller payment
Deeming assumes your financial assets earn a set return, whatever you actually receive. That deemed income is added to your other income in the income test, so higher deeming rates can reduce a payment for people whose income is above the income test threshold. Recipients do not need to do anything for the new rates to apply.
As an illustration (our own calculation), a single person with $100,000 in financial assets was deemed to earn $1,914 a year under the old deeming rates. Under the new rates that becomes $2,414 a year, an increase of $500 in deemed income.
Related: Centrepay payments for certain goods and services end 1 November 2026
General information only, not legal advice. Check the official source before acting.
Source: Services Australia. Rates and thresholds also checked against the Department of Veterans’ Affairs Financial Assets and Deeming table, 20 September 2026. Licence: CC BY 4.0.
