{"id":806,"date":"2020-04-06T06:22:56","date_gmt":"2020-04-06T06:22:56","guid":{"rendered":"https:\/\/trustedagedcare.com.au\/?p=806"},"modified":"2020-04-06T06:22:56","modified_gmt":"2020-04-06T06:22:56","slug":"what-do-the-deeming-rate-cuts-mean","status":"publish","type":"post","link":"https:\/\/trustedagedcare.com.au\/newsite\/2020\/04\/06\/what-do-the-deeming-rate-cuts-mean\/","title":{"rendered":"What do the Deeming rate cuts mean?"},"content":{"rendered":"<section class=\"_3PsH9 _1DCKj\">Interest rates have been falling a lot faster and a lot longer than\u00a0<a href=\"https:\/\/www.afr.com\/wealth\/personal-finance\/super-changes-how-they-can-help-you-through-the-crisis-20200325-p54dre\">deeming rates<\/a>\u00a0for Centrelink and Veterans\u2019 Affairs recipients, making it practically to even earn the current deeming rates from bank accounts.<\/p>\n<p>Higher-risk investments (in better markets) may potentially produce higher returns, but these are often not appropriate for people in aged care and can cause undue anxiety in times of large volatility.<\/p>\n<\/section>\n<aside class=\"_3-KSC\"><\/aside>\n<section class=\"ztzrw\">\n<div id=\"endOfArticle\" class=\"_3PsH9\">\n<p>Calls for some time to cut the deeming rates have been answered as part of the stimulus measures and the rates will be cut by 0.75% from May 1,2020.<\/p>\n<p>The benefit for some will mean higher pension entitlements and lower aged care means-tested fees. Do note tho, that pensions will not change if the maximum pension is already received or entitlements are calculated under the assets test.<\/p>\n<figure class=\"gzJMC _3C25C\" data-pb-type=\"im\"><picture><source srcset=\"https:\/\/static.ffx.io\/images\/$width_620\/t_resize_width\/e_sharpen:25%2Cq_85%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a, https:\/\/static.ffx.io\/images\/$width_1240\/t_resize_width\/e_sharpen:25%2Cq_42%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a 2x\" media=\"(min-width: 1180px)\" data-pb-im-config=\"{&quot;aspectRatio&quot;:0,&quot;type&quot;:&quot;raw&quot;,&quot;width&quot;:620,&quot;urls&quot;:[&quot;https:\/\/static.ffx.io\/images\/$width_620\/t_resize_width\/e_sharpen:25%2Cq_85%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a&quot;,&quot; https:\/\/static.ffx.io\/images\/$width_1240\/t_resize_width\/e_sharpen:25%2Cq_42%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a 2x&quot;]}\" \/><source srcset=\"https:\/\/static.ffx.io\/images\/$width_620\/t_resize_width\/e_sharpen:25%2Cq_85%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a, https:\/\/static.ffx.io\/images\/$width_1240\/t_resize_width\/e_sharpen:25%2Cq_42%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a 2x\" media=\"(min-width: 1020px)\" data-pb-im-config=\"{&quot;aspectRatio&quot;:0,&quot;type&quot;:&quot;raw&quot;,&quot;width&quot;:620,&quot;urls&quot;:[&quot;https:\/\/static.ffx.io\/images\/$width_620\/t_resize_width\/e_sharpen:25%2Cq_85%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a&quot;,&quot; https:\/\/static.ffx.io\/images\/$width_1240\/t_resize_width\/e_sharpen:25%2Cq_42%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a 2x&quot;]}\" \/><source srcset=\"https:\/\/static.ffx.io\/images\/$width_695\/t_resize_width\/e_sharpen:25%2Cq_85%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a, https:\/\/static.ffx.io\/images\/$width_1390\/t_resize_width\/e_sharpen:25%2Cq_42%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a 2x\" media=\"(min-width: 768px)\" data-pb-im-config=\"{&quot;aspectRatio&quot;:0,&quot;type&quot;:&quot;raw&quot;,&quot;width&quot;:688,&quot;urls&quot;:[&quot;https:\/\/static.ffx.io\/images\/$width_695\/t_resize_width\/e_sharpen:25%2Cq_85%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a&quot;,&quot; https:\/\/static.ffx.io\/images\/$width_1390\/t_resize_width\/e_sharpen:25%2Cq_42%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a 2x&quot;]}\" \/><img decoding=\"async\" class=\"_1srKI\" src=\"https:\/\/static.ffx.io\/images\/$width_620\/t_resize_width\/e_sharpen:25%2Cq_85%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a\" sizes=\"(max-width: 767px) 382px\" srcset=\"https:\/\/static.ffx.io\/images\/$width_382\/t_resize_width\/e_sharpen:25%2Cq_85%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a, https:\/\/static.ffx.io\/images\/$width_764\/t_resize_width\/e_sharpen:25%2Cq_42%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a 2x\" alt=\"\" data-test=\"Image-image\" data-id=\"111cf727d76bec95f7dec0a68c233de73308ba5a\" data-pb-im-config=\"{&quot;aspectRatio&quot;:0,&quot;type&quot;:&quot;raw&quot;,&quot;width&quot;:382,&quot;urls&quot;:[&quot;https:\/\/static.ffx.io\/images\/$width_382\/t_resize_width\/e_sharpen:25%2Cq_85%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a&quot;,&quot; https:\/\/static.ffx.io\/images\/$width_764\/t_resize_width\/e_sharpen:25%2Cq_42%2Cf_auto\/111cf727d76bec95f7dec0a68c233de73308ba5a 2x&quot;]}\" \/><\/picture><figcaption class=\"LuHig\">\u00a0<cite class=\"_23SOU\"><\/cite><\/p>\n<\/figcaption><\/figure>\n<p data-gtm-vis-first-on-screen-7770372_137=\"89647\" data-gtm-vis-total-visible-time-7770372_137=\"4000\" data-gtm-vis-recent-on-screen-7770372_137=\"98324\" data-gtm-vis-has-fired-7770372_137=\"1\"><strong>EXAMPLE:\u00a0<\/strong>When Edna moved into residential care, she chose to sell her home to pay her $400,000 accommodation cost, leaving her with $350,000 in the bank. She receives an age pension of $849.31 a fortnight and pays $1,133.96 a fortnight in residential care fees.<\/p>\n<p>When deeming rates change on May 1, her pension will increase to $899.77 a fortnight and fees will decrease to $1108.65 a fortnight. This improves her income by $75.77 a fortnight, which helps with extra income to meet her expenses.<\/p>\n<h2><strong>Cash bonuses!<\/strong><\/h2>\n<p>Aged Care residents who receive a means-tested pension (Centrelink\/Veterans\u2019 Affairs) or hold either a\u00a0<a href=\"https:\/\/www.afr.com\/wealth\/superannuation\/seniors-health-card-tips-and-traps-when-changing-pensions-20190411-p51d2w\">Commonwealth Seniors Health Card<\/a>\u00a0or Veterans Gold Card will receive two $750 cash payments as a boost to income.\u00a0 Awesome!<\/p>\n<p>As a bonus, this money is tax-free and not assessable. The first payment will be paid into bank accounts over the next two weeks. The second payment will be paid in late July so keep your eyes peeled for these.<\/p>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Interest rates have been falling a lot faster and a lot longer than\u00a0deeming rates\u00a0for Centrelink and Veterans\u2019 Affairs recipients, making it practically to even earn the current deeming rates from bank accounts. Higher-risk investments (in better markets) may potentially produce higher returns, but these are often not appropriate for people in aged care and can [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":807,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3,27,4],"tags":[21,32,83,84],"class_list":["post-806","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aged-care","category-case-studies","category-centrelink","tag-aged-care","tag-centrelink","tag-deeming","tag-deeming-rates"],"acf":[],"_links":{"self":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/posts\/806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/comments?post=806"}],"version-history":[{"count":0,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/posts\/806\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/media\/807"}],"wp:attachment":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/media?parent=806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/categories?post=806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/tags?post=806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}