Deeming is the method used to determine assessable income from various financial investments held by applicants and recipients of Government Income Support (GIS) payments and Concession Cards such as the Commonwealth Seniors Health Card. It is also a method used to determine fees payable for assisted residential aged care.
Financial investments include, but are not limited to the balances of all types of accounts with any financial institution, cash, shares, managed investments, money lent, friendly society/insurance bonds, bullion and in certain circumstances, superannuation, income streams and gifts.
Deeming is a tiered interest rate system that applies to the total market value of financial investments held. For couples it is usually their combined financial investments but can depend on whether the support payment is a pension or an allowance. The rates are reviewed regularly and may be increased or reduced. Current rates can be obtained by phoning Financial Information Desk (FID) on 1300 020 110.
The tier thresholds are adjusted annually. Full details can be found at the Department of Human Services (DHS) website, www.humanservices.gov.au, by phoning its Financial Information Service (FIS) or FID.
It is assumed financial investments earn the deemed rates regardless of what is actually earned. If a higher rate is achieved the extra earnings will not affect the amount of the income support payment. If a lower rate is paid the applicable deeming rate will still apply for assessment.