Deeming applies to [glossary:managed investments:707] held overseas.
Deeming applies to funeral bonds that are not [glossary:exempt assets:573].
Funeral Bonds
Deeming was introduced to encourage pensioners to maximise their total disposable income by investing to gain returns of at least the deeming rate. Current deeming rates represent the returns that are generally available in safe investments. Deeming refers to how income from [glossary:financial assets:241] is assessed for income test purposes and applies to most [glossary:DVA:306] and [glossary:Centrelink:441] payments.
John and Mary are both [glossary:service pensioners:245] with a combined total of $100,000 in [glossary:financial investments:437]. $65,000 is in a term deposit and they have $35,000 worth of managed investments.
The following table is an example showing the deemed income calculation.
Note: The threshold amount and the deeming interest rate used in this example were current at 1 May 2020 and may have since changed.
| Indexation of pensions and allowances | ||||||
| Category | Indexation date(s)... | Reference quarter | Base quarter | |||
[glossary:GARP:181] is the legislative instrument used by decision-makers to determine the amount of [glossary:Disability Compensation Payment:574] to pay a [glossary:veteran:424] in respect of [glossary:incapacity:350] from war-caused or defence-caused [glossary:injuries:315] and [glossary:diseases:603]. It looks at the medical impairment suffered as a result of war-caused disabilities and the effect on the veteran's lifestyle.
Last updated: 23 March 2012
Company title property ownership occurs where a block of flats, units or apartments is held under a single title. A person with company title property ownership purchases a share in the company that owns the property, rather than purchasing the title for the individual property in which they live.
This is different to arrangements where the principal residence of the person is owned or transferred to a controlled private company or a controlled private trust.
This chapter contains information on deeming provisions and how savings investments, shares investments and managed investments are treated under the deeming provisions.
See Also
Last amended: 28 July 2022
The Empire Air Training Scheme (EATS) (also known as the British Commonwealth Air Training Plan) was operated by the British Government until mid-1944. The scheme was devised as a way for Britain to meet her need for air crews in the Royal Air Force (RAF). Under its terms, the British Government accepted liability for compensation for any veteran, whose death or incapacity resulted from service, while attached to the RAF.
