Budget 2008-09: Social Security Payments

18.12.08

Deeming rates for income test

From 17 November 2008, the social security income test deeming rates have been lowered to take account of deceased returns on financial investments.

The new deeming rate is 3% for the first $41,000 of a single person’s financial investments ($68,200 for a couple). For financial investments over the threshold, the rate is 5%.

Payments affected by the new rates include the Age Pension, Disability Support Pension and Department of Veterans’ Affairs payments.

Lump sum payments

The Government’s Economic Security Strategy will provide a one-off lump sum payment of $1,400 for singles and $2,100 for couples combined, which will be paid during the fortnight commencing 8 December 2008.

Eligible recipients include those receiving an Age Pension and holders of a Commonwealth Seniors Health Card.