Pensioners to have extra money after deeming rates cut

Around one million Australians could receive up to $800 more per year under changes to the federal government's income test for pensioners. But advocates say the much-needed move doesn't go far enough.

Pensioners will have extra money in their wallets Source: AAP

The federal government has announced it will cut deeming rates for pensioners for the first time since 2015. The rates are used to estimate how much some pensioners earn on their financial investments, and determine the fortnightly payments they receive. It assumes pensioner's investments earn a set rate of interest, no matter what they really earn. 

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