Things you should know

• To qualify you must meet the income test above and be in Australia
• The current income test thresholds are determined by legislation which could change in the future
• You will be required to notify Centrelink of any changes in your circumstances both personal and financial within 14 days of the change occurring. This is an ongoing obligation.
• If eligible, you need to submit an application to Centrelink and will need to then keep Centrelink updated with all changes to your financial circumstances and living arrangements
• Example of the income types Centrelink Assess are as follows:
  • employment income, such as wages, salary and self employment income
  • employer provided fringe benefits
  • rental income
  • reportable super contributions, salary sacrifice
  • Centrelink pensions, benefits and some supplementary payments
  • Paid Parental Leave payments
  • Department of Veterans Affairs payments.
  • deemed income from financial investments, such as bank accounts, managed investments and shares
  • deemed income from account-based income streams
  • income from income stream products, such as super pensions and defined benefit income streams
  • foreign income
  • privates trusts and companie
  • compensation payments, including periodical and lump sum lump sum payments, such as redundancy, leave, or termination payments.

Deeming is the term which describes the method used by Centrelink and Veteran’s Affairs to calculate your assessable income from certain investments when determining the level of entitlement to be paid. Deeming means that you are assumed to earn a certain return on ‘financial’ investments, irrespective of the actual rate of interest or capital growth you earn. If you earn more than the deemed rate on your investments, the excess will not be included in the income test and will not affect your Centrelink payment. However, if the investment earns less than the deemed rate, you will still be assessed as earning income at the deemed rate. deemed rate, you will still be assessed as earning income at the deemed rate.

What is deeming?

Deeming is the term which describes the method used by Centrelink and Veteran’s Affairs to calculate your assessable income from certain investments when determining the level of entitlement to be paid. Deeming means that you are assumed to earn a certain return on ‘financial’ investments, irrespective of the actual rate of interest or capital growth you earn. If you earn more than the deemed rate on your investments, the excess will not be included in the income test and will not affect your Centrelink payment. However, if the investment earns less than the deemed rate, you will still be assessed as earning income at the deemed rate. The income test then combines the deemed income with income earned from other sources you receive to work out your entitlements under the income test.

How does deeming work?

To work out the level of deemed income that your financial investments earn you simply apply the following rates in regards to the amount of total financial assets you hold. For the current deeming rates refer to : https://www.humanservices.gov.au/individuals/enablers/deeming

The Government changes the deeming rate from time to time to reflect market conditions and most financial institutions offer special accounts that pay interest at the deeming rate.

Deeming is the term which describes the method used by Centrelink and Veteran’s Affairs to calculate your assessable income from certain investments when determining the level of entitlement to be paid. Deeming means that you are assumed to earn a certain return on ‘financial’ investments, irrespective of the actual rate of interest or capital growth you earn. If you earn more than the deemed rate on your investments, the excess will not be included in the income test and will not affect your Centrelink payment. However, if the investment earns less than the deemed rate, you will still be assessed as earning income at the deemed rate.

Deeming is the term which describes the method used by Centrelink and Veteran’s Affairs to calculate your assessable income from certain investments when determining the level of entitlement to be paid. Deeming means that you are assumed to earn a certain return on ‘financial’ investments, irrespective of the actual rate of interest or capital growth you earn. If you earn more than the deemed rate on your investments, the excess will not be included in the income test and will not affect your Centrelink payment. However, if the investment earns less than the deemed rate, you will still be assessed as earning income at the deemed rate. The income test then combines the deemed income with income earned from other sources you receive to work out your entitlements under the income test.