When does the deeming change start to affect payments?

The change takes effect from 20 March. Centrelink reassesses payments based on updated deemed income, so reductions can appear from that date or shortly after. Check your myGov inbox and recent letters for updated calculations, and confirm your financial asset balances are current to avoid errors.

Why could a Centrelink part pension be wiped out?

Higher deeming lifts assessed income from bank accounts, term deposits, managed funds, and super pensions. If that assessed income pushes you over the income cut‑off, your payment stops. Some retirees close to the limit will be most at risk, even if their actual investment returns are lower than the deeming rate.

How can I estimate the impact on my Age Pension?

List all financial assets and apply the new deeming factors when published. Compare the resulting deemed income to figures on your latest Centrelink assessment. If the deemed amount is higher than before, your payment likely falls. Keep balances updated and seek licensed financial advice for complex situations.

What portfolio moves should retirees consider now?

Start with cash and fixed income. Ladder term deposits for liquidity, compare bonus savers, and keep a cash buffer. Review exposure to franked dividends and bond fund distributions, since they affect tax and assessed income. Avoid rushed product switches without advice, as different products can be assessed in different ways.

Global Market Insights

February 24: Centrelink Deeming Rate Hike May Erase Many Part Pensions

ByHuzaifa Zahoor February 24, 2026February 24, 2026

A centrelink deeming rate increase from 20 March is set to tighten the Age Pension income test in Australia. After years of COVID relief, higher assumed returns on financial assets mean assessed income will rise. That can reduce or cancel a Centrelink part pension for retirees with bank savings, term deposits, managed funds, and account‑based pensions. We explain how age pension deeming rates work, who is most exposed, likely portfolio impacts, and practical steps to protect cash flow before the change lands.