Deeming Rates Rise to 1.75% and 3.75% (Sept 2026)

Deeming rates from 20 September 2026: 1.75% and 3.75%

From 20 September 2026 the deeming rates used in the Age Pension income test rose by half a percentage point: the lower rate from 1.25% to 1.75% and the higher rate from 3.25% to 3.75%. For some part-pensioners, that means a smaller fortnightly payment.

By FinForce · Published 31 October 2026 · Figures current at publication

The current settings

Single: the first $66,800 of financial assets is deemed to earn 1.75%; anything above earns 3.75%.
Couple, at least one on a pension: the first $110,600 of combined financial assets is deemed at 1.75%; anything above at 3.75%.
Couple, neither on a pension: the first $55,300 each is deemed at 1.75%.

Why it matters

Deeming assumes your bank accounts, term deposits, shares and account-based pensions earn a set rate, whatever they actually earn. That deemed income goes into the income test. If you earn more than the deemed rate, the extra is not counted. If you earn less, you are still assessed on the deemed rate.

The same indexation round lifted the maximum Age Pension from 20 September 2026 to $1,237.70 a fortnight for a single and $1,866.00 for a couple combined.

What to check now

Look at what your cash actually earns. With the RBA cash rate at 4.60%, money sitting at a low rate is costing you twice.
Update Services Australia if the value of your financial assets has changed.
Review any planned gifts: excess gifts are deemed too. See Age Pension gifting rules.
Run your numbers through the Age Pension calculator.

Quick answers

What are the deeming rates from 20 September 2026?

1.75% on financial assets up to $66,800 for singles or $110,600 for couples combined, and 3.75% above those thresholds.

What were the deeming rates before?

1.25% and 3.25%.

What is the maximum Age Pension from 20 September 2026?

$1,237.70 a fortnight for a single and $1,866.00 for a couple combined.

Related reading: Age Pension assets test limits 2026

Sources

General advice warning. This article is general information only and does not take into account your objectives, financial situation or needs. Rules, rates and thresholds change; check the sources above. Consider the relevant PDS and our Financial Services Guide and seek personal advice before acting. FinForce is a Corporate Authorised Representative (No. 001241242) of Financial Force Pty Ltd, ABN 42 091 425 464, AFSL 238337.