New Deeming Rates & The March 2026 Indexation: What It Means for Your Pocket
For the last few years, Australian pensioners have had a rare win: a "freeze" on deeming rates that protected their payments even as bank interest rates climbed.
However, as of March 20, 2026, that freeze has officially thawed. The Government has announced a "gradual" increase in the rates used to test your income. If you have money in the bank, shares, or superannuation, you might be wondering if your next Centrelink payment is about to take a hit.
The Good News: The "Pension Boost"
Before we look at the deeming rates, it’s important to remember that March 20 is also a major indexation day.
Due to the rising cost of living, the maximum rate of the Age Pension is set to increase. Early estimates suggest a boost of approximately $22.20 per fortnight for singles and $33.40 combined for couples. For many, this increase will outweigh any impact from the new deeming rates.
The New 2026 Deeming Rates
The Australian Government Actuary has recommended a 0.50% lift across the board. Here is how the rates look starting March 20, 2026:
Why This is Actually a "Savvy" Result
Even though the rates are going up, they are still significantly lower than what most banks are currently offering for term deposits or high-interest savings accounts (often 4.5% to 5.0%).
Because Centrelink only "deems" you to be earning 3.25% on your higher balances, you get to keep the difference without it affecting your pension. In many ways, the system is still encouraging you to find the best possible return on your hard-earned savings.
Who is most affected?
You should pay close attention to these changes if:
You receive a Part-Pension based on the Income Test.
You have significant financial assets (shares, super, or cash) above the $100k mark.
You hold a Commonwealth Seniors Health Card, as the income and deeming changes may affect your eligibility threshold.
The "Net" Effect: Will you lose money?
For the vast majority of our clients, the answer is no. Because the base pension rate is rising at the same time the deeming rates move, most pensioners will still see a net increase in their bank accounts this March.
However, if your assets are right on the "cliff edge" of eligibility, a small shift in deemed income can sometimes trigger a larger reduction.
Don't leave it to guesswork.
At Age Pension Services, we specialize in running the numbers so you don't have to. If you’re worried about how the 2026 changes affect your specific situation, we can help you review your portfolio and ensure you’re maximizing your entitlements.