Changes to deeming rates may seem minor at first glance, but for many older Australians they can have a direct impact on benefits and concessions. If you hold a Commonwealth Seniors Health Card or receive Centrelink benefits, higher deeming rates could affect your assessed income even where your actual financial position has not changed.

Deeming rates are the rates Centrelink uses to estimate the income earned from financial investments. Rather than assessing the actual return from each investment, the government applies a set rate to your financial assets. From 20 March 2026, the lower deeming rate increased from 0.75% to 1.25%, while the upper rate increased from 2.75% to 3.25%.

Under the deeming rules, your investments are assumed to earn income at the prescribed rates regardless of what they actually earn. The lower deeming rate applies to financial assets up to $64,200 for singles and $106,200 for couples combined, while the upper rate applies to balances above those thresholds.

Why It Matters

Although this may sound like a technical adjustment, it can have very real implications. Higher deeming rates may increase your assessed income, which in turn could affect your eligibility for the Commonwealth Seniors Health Card, Age Pension entitlements, aged care fees and other income-tested concessions.

Some people may therefore see their benefits or concessions change, even though their investments have not earned any more income. This is because the impact arises from the way Centrelink assesses income, rather than from any actual increase in your financial returns.

Who May Be Affected

These changes are particularly relevant for self-funded retirees, pensioners and people with account-based income streams that are subject to deeming under the social security income test.

What Should You Do Now?

If you may be affected, now is a good time to:

• Review your current Centrelink position
• Check whether the higher deeming rates may increase your assessed income
• Consider whether the changes could affect your benefits or concessions

Even where the change appears small, it may still influence your entitlement to valuable concessions and support. Reviewing your position early can help you understand the impact and avoid surprises.