Pensioners are being hit hard by the Morrison Government’s refusal to review the interest rate Centrelink deems they earn on their investments.
With interest rates at record lows, the Government’s refusal to lower deeming rates is effectively cutting payments for pensioners.
The Reserve Bank has cut the cash rate to 1.25 per cent, but Centrelink deems pensioners are earning 3.25 per cent on their savings. This is unfair and unrealistic for pensioners who simply can’t afford to take risks with their savings.
Pensioners are being hit twice - once because of low interest on their savings, and again because their pension is being reduced. Pensioners are contacting me about the financial stress this is causing.
On returning to Canberra next month, I will fight for pensioners. I will join Labor Shadow Minister for Families and Social Services Linda Burney in demanding the Morrison Government review the deeming rates.
The Reserve Bank has cut interest rates four times since 2015, but the Liberals and Nationals have kept the deeming rate the same.
How does the Government expect pensioners to find bank accounts or term deposits that are currently paying 3.25 per cent?
Labor has been continually calling on the Government to review the deeming rate. When Parliament resumes, this must be a priority.
FRIDAY, 21 JUNE, 2019