Deeming rates and Age Pension estimates in Australia.
Deeming is how financial assets can create assessable income for the Age Pension income test. The deemed income number may be different from the actual interest, dividends or investment return a household receives.
Current deeming rates used for RetireAI modelling.
For Age Pension income-test modelling, financial assets are grouped and deemed at tiered rates. The result is converted into assessable income for the income test.
| Household | Lower deeming tier | Upper deeming tier |
|---|---|---|
| Single | 1.25% up to $64,200 | 3.25% above $64,200 |
| Couple combined | 1.25% up to $106,200 | 3.25% above $106,200 |
Deeming is part of the same decision tree.
Financial assets feed the income test through deeming, so this page works best when read with the income and assets test pages.
Rules checked 14 June 2026 against the current Services Australia pages.
Financial assets that can be deemed.
Cash and deposits
Bank accounts, savings accounts and term deposits are commonly treated as financial assets for deeming.
Investments
Shares, managed funds, ETFs and similar investment balances can create deemed income for the income test.
Assessable super
Super can be included once the relevant person reaches Age Pension age. Mixed-age couples need careful handling.
Why actual interest is not always the pension income number.
A household might earn more or less than the deeming rate in real life, but the income test can still use the deemed income figure. That is why a pension estimate can change even when the cash return feels low.
- A single person with financial assets above the lower deeming threshold has part of the balance deemed at the higher rate.
- A couple uses the couple threshold for combined financial assets.
- Non-financial assets can still matter under the assets test even though they are not normally deemed.
Common deeming traps.
Using actual interest only
The income test may use deemed income rather than the exact interest received.
Missing assessable super
Super treatment changes around Age Pension age and can be different for mixed-age couples.
Confusing tests
Financial assets can affect the assets test and also create income under deeming.
Old rate settings
Deeming thresholds and rates can change, so source date matters.
Before using a deeming calculator
- List all bank accounts, term deposits, shares and managed funds.
- Confirm which super balances are assessable.
- Separate financial assets from cars, contents, property and other non-financial assets.
- Compare the income-test result with the assets-test result.
- Flag foreign pensions, defined-benefit income and unusual assets for official checking.
How RetireAI uses deeming
RetireAI uses deeming to explain income-test pressure alongside assets-test pressure, retirement spending, super drawdowns and timing assumptions. The goal is to make the moving parts visible before advice or an official check.
Deeming questions people ask.
What is deeming?
Deeming estimates income from financial assets for Age Pension income-test purposes.
Do non-financial assets get deemed?
Non-financial assets can count under the assets test, but deeming generally applies to financial assets.
Does deeming decide the pension alone?
No. Deeming feeds the income test, and the assets test is still checked separately.