Deeming Rates 2026 and Deeming Calculator — 1.75% and 3.75% From 20 September
From 20 September 2026 Centrelink deems your financial assets to earn 1.75% on the first $66,800 (single) or $110,600 (pensioner couple, combined), and 3.75% on everything above. The deemed amount is added to your wages and other income for the income test — whatever your savings actually earn.
The rates were 1.25% / 3.25% from 20 March to 19 September 2026. Enter your savings and your pay to see your deemed income and what it does to an Age Pension.
Deeming Calculator
How it was worked out
Pension figures use the income test only, with the $226 single / $396 couple (combined) free areas. The assets test may give a lower rate — see the assets test calculator.
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Current Deeming Rates and Thresholds
| Situation | 1.75% on the first | 3.75% on the balance above |
|---|---|---|
| Single | $66,800 | over $66,800 |
| Couple, at least one gets a pension (combined) | $110,600 | over $110,600 |
| Couple, neither gets a pension (each person) | $55,300 | over $55,300 |
Rates from 20 September 2026; thresholds from 1 July 2026. Deeming rates are set by the Minister for Social Services. A non-pensioner couple's threshold applies to each person's own assets plus their share of joint assets.
Deemed Income at Different Balances
| Financial assets | Single, a year | Single, a fortnight | Pensioner couple, a year | Pensioner couple, a fortnight |
|---|---|---|---|---|
| $25,000 | $437.50 | $16.83 | $437.50 | $16.83 |
| $50,000 | $875.00 | $33.65 | $875.00 | $33.65 |
| $66,800 | $1,169.00 | $44.96 | $1,169.00 | $44.96 |
| $100,000 | $2,414.00 | $92.85 | $1,750.00 | $67.31 |
| $150,000 | $4,289.00 | $164.96 | $3,413.00 | $131.27 |
| $200,000 | $6,164.00 | $237.08 | $5,288.00 | $203.38 |
| $300,000 | $9,914.00 | $381.31 | $9,038.00 | $347.62 |
| $500,000 | $17,414.00 | $669.77 | $16,538.00 | $636.08 |
A single pensioner's income free area is $226 a fortnight. With no other income, deemed income reaches that at roughly $192,000 of financial assets; above it every extra deemed dollar costs 50 cents of pension. Wages from a job use up the same free area, after the Work Bonus.
Deeming Rate History
| From | Lower rate | Upper rate | Single threshold | Pensioner couple | Non-pensioner couple (each) |
|---|---|---|---|---|---|
| 20 September 2026 | 1.75% | 3.75% | $66,800 | $110,600 | $55,300 |
| 1 July 2026 | 1.25% | 3.25% | $66,800 | $110,600 | $55,300 |
| 20 March 2026 | 1.25% | 3.25% | $64,200 | $106,200 | $53,100 |
| 20 September 2025 | 0.75% | 2.75% | $64,200 | $106,200 | $53,100 |
| 1 July 2025 | 0.25% | 2.25% | $64,200 | $106,200 | $53,100 |
| 1 July 2024 | 0.25% | 2.25% | $62,600 | $103,800 | $51,900 |
| 1 July 2023 | 0.25% | 2.25% | $60,400 | $100,200 | $50,100 |
| 1 July 2022 | 0.25% | 2.25% | $56,400 | $93,600 | $46,800 |
| 1 July 2021 | 0.25% | 2.25% | $53,600 | $89,000 | $44,500 |
| 1 July 2020 | 0.25% | 2.25% | $53,000 | $88,000 | $44,000 |
| 1 May 2020 | 0.25% | 2.25% | $51,800 | $86,200 | $43,100 |
| 1 July 2019 | 1.00% | 3.00% | $51,800 | $86,200 | $43,100 |
From the DSS Social Security Guide 4.4.1.10, which lists every change since 1 July 1996. The rates sat at 0.25% / 2.25% from 1 May 2020 until 20 September 2025, then rose in three steps.
What Is Deemed — and What Isn't
- Deemed: bank, building society and credit union accounts, term deposits, cash, managed investments, loans and debentures, listed shares and securities, some income streams (including account-based pensions), some gifts, and superannuation once you are Age Pension age.
- Not deemed: your home, car, contents and other personal assets (they only count in the assets test), and super in accumulation phase while you are under Age Pension age.
- Home sale proceeds you intend to use for a new home (sales from 1 January 2023) are deemed at the lower rate only.
- Exemptions are granted by the Minister only in special cases — failed investments, some inaccessible super, or an account holding only NDIS funds — never for poor performance.
Deeming, Your Pay and Your Payment
Deeming does not change your wages or the tax you pay on them. What it changes is how much of the Centrelink income free area your savings use up before your pay is counted. A single pensioner with $100,000 in the bank is deemed to earn $92.85 a fortnight; add a $500 pay packet (only $200.00 of which counts after the Work Bonus) and the income test starts reducing the pension. See the full picture on the Age Pension calculator, and your net pay on the fortnightly pay calculator.
Deeming also applies to working-age payments — JobSeeker, Parenting Payment, Austudy and Youth Allowance — and to the Commonwealth Seniors Health Card (account-based income streams only). It does not affect Family Tax Benefit.
Related Calculators and Guides
- Centrelink income test guide — free areas, tapers and cut-offs for every payment
- Carer Payment calculator — the pension-rate payment with the 100-hour work rule
- Carer Allowance — the fortnightly supplement and its $250,000 income limit
- Centrelink advance payment calculator — how much you can borrow and what comes off each fortnight
- Crisis Payment — the one-off payment after an extreme circumstance
- Centrelink debt — overpayments, refunds and the income apportionment scheme
- Cost of living payment 2026 — what actually exists this year
- Paid Parental Leave calculator — 26 weeks from 1 July 2026, days, split and super
- JobSeeker payment calculator — what you keep when you work part-time
- Age Pension calculator — rates from 20 September 2026 and the income test, with the Work Bonus
- Age Pension assets test calculator — limits, the $3-per-$1,000 taper and which test applies
- Disability Support Pension calculator — rates, the income test and the 29-hour work rule
- Commonwealth Seniors Health Card — the income limit, deeming and a quick eligibility check
- Child Care Subsidy calculator — your CCS % on family income and the gap fee
- Parenting Payment calculator — single and partnered
- Fortnightly pay calculator — the gross fortnightly figure Centrelink asks for
How this calculator works▼
- Deemed income a year = lower rate × assets up to the threshold + upper rate × assets above it. Per fortnight = annual ÷ 26. A non-pensioner couple's assets are deemed person by person on the $55,300 threshold.
- The “was” figure recomputes the same assets on the 20 March 2026 settings (1.25% / 3.25% on $64,200 single), for comparison.
- The pension estimate adds deemed income to wages after the Work Bonus credit (no balance assumed) and applies the pension income test on the rates from 20 September 2026. The assets test is not applied here.
- Figures read at Services Australia and in the DSS Social Security Guide on 24 September 2026. Pay Calculator Australia is not Services Australia.
Frequently Asked Questions
Deeming questions and answers
What are the current Centrelink deeming rates?
From 20 September 2026: 1.75% on the first $66,800 of financial assets for a single person ($110,600 combined for a couple where at least one gets a pension), and 3.75% on everything above. The rates were 1.25% and 3.25% from 20 March 2026 to 19 September 2026.
How is deemed income calculated?
Centrelink assumes your financial assets earn the deeming rates, whatever they actually earn. A single person with $100,000 in the bank is deemed to earn $2,414.00 a year: 1.75% of $66,800 plus 3.75% of the rest. That is about $92.85 a fortnight, added to any wages and other income for the income test.
What counts as a financial asset for deeming?
Bank, building society and credit union accounts, term deposits, cash, managed investments, listed shares and securities, loans you have made, some gifts, account-based income streams (such as an account-based pension) and superannuation once you are Age Pension age. Your home, car and household contents are assets for the assets test but are not deemed.
Does deeming affect my wages or Family Tax Benefit?
Deemed income is added to your employment income for the income test of pensions and allowances, but it does not change your wages. Family Tax Benefit is not affected by deeming because it uses your taxable income, which already includes the interest you actually earn.
What if my investments earn more than the deeming rate?
The extra is not counted. Only the deemed amount is assessed, so returns above the deeming rates do not reduce your payment. The reverse also holds: if your savings earn less than the deeming rate, Centrelink still counts the deemed amount.
When do deeming rates and thresholds change?
The Minister for Social Services sets the rates and the thresholds index on 1 July. The last three rate changes took effect on 20 September 2025, 20 March 2026 and 20 September 2026. The thresholds rose to $66,800 / $110,600 on 1 July 2026, and the rates rose to 1.75% / 3.75% on 20 September 2026.
From 20 September 2026: 1.75% on the first $66,800 of financial assets for a single person ($110,600 combined for a couple where at least one gets a pension), and 3.75% on everything above. The rates were 1.25% and 3.25% from 20 March 2026 to 19 September 2026.
Centrelink assumes your financial assets earn the deeming rates, whatever they actually earn. A single person with $100,000 in the bank is deemed to earn $2,414.00 a year: 1.75% of $66,800 plus 3.75% of the rest. That is about $92.85 a fortnight, added to any wages and other income for the income test.
Bank, building society and credit union accounts, term deposits, cash, managed investments, listed shares and securities, loans you have made, some gifts, account-based income streams (such as an account-based pension) and superannuation once you are Age Pension age. Your home, car and household contents are assets for the assets test but are not deemed.
Deemed income is added to your employment income for the income test of pensions and allowances, but it does not change your wages. Family Tax Benefit is not affected by deeming because it uses your taxable income, which already includes the interest you actually earn.
The extra is not counted. Only the deemed amount is assessed, so returns above the deeming rates do not reduce your payment. The reverse also holds: if your savings earn less than the deeming rate, Centrelink still counts the deemed amount.
The Minister for Social Services sets the rates and the thresholds index on 1 July. The last three rate changes took effect on 20 September 2025, 20 March 2026 and 20 September 2026. The thresholds rose to $66,800 / $110,600 on 1 July 2026, and the rates rose to 1.75% / 3.75% on 20 September 2026.
Sources & References
- 1Deeming (Age Pension)— Services Australia
- 2Social Security Guide 4.4.1.10 — Overview of deeming (rates and thresholds history)— Department of Social Services
- 3Income test for Age Pension— Services Australia
- 4Asset types— Services Australia
Last verified: 24 September 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
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