The Deeming Rate Trap: Why Your Age Pension Rise Is Smaller Than the Headline

On 20 September 2026 the Age Pension went up $36.80 a fortnight for a single, $55.60 for a couple. On the same day the deeming rates went up too - the lower rate from 1.25% to 1.75%, the upper rate from 3.25% to 3.75% - and for part-pensioners whose rate is set by the income test, that second change quietly takes back most of the first. I ran the numbers for a single homeowner with $300,000 in financial assets. The headline says $36.80 more. What actually lands in her account is about $8. CHAPTERS 0:00 $36.80 up, $8 lands 0:46 The number that changed: deeming 1:18 Thresholds and what counts 1:49 The trap: the income test 2:42 Margaret - $300,000, single 3:39 The ten-second calculation (screenshot this) 4:21 Ray and Linda - $420,000, couple 5:08 Why it stings more in 2026 5:45 The 30-second check: are you affected? 6:44 DSP, Carer Payment and JobSeeker 7:18 Three things to do this week 8:18 What happens next 8:40 Recap WHAT'S IN THIS ONE - What deeming is, and the thresholds that didn't move ($66,800 single, $110,600 couple) - The trap: higher deeming rate, more assumed income, less pension - through the income free area ($226 single, $396 couple) and the 50c taper - Margaret, single, $300,000: deemed income $8,414 to $9,914, pension down $28.85, real increase $7.95 a fortnight - The ten-second calculation: divide your financial assets by 10,400 - that's roughly what this change costs you a fortnight, if the income test sets your rate (screenshot that one) - Ray and Linda, couple, $420,000: pension down $40.38, real increase $15.22 between them - Why it stings more in 2026: three rises of 0.5 points since the freeze ended, $4,500 a year more assumed income on $300,000 - The 30-second check: full pension, assets-test-set, or under the free area and this generally doesn't touch you - DSP, Carer Payment and JobSeeker use deeming too - Three things to do this week Every figure was checked against the Australian Government Actuary's September 2026 deeming recommendation and Services Australia's own pages on 17 September 2026. Sources: Australian Government Actuary - Deeming rate recommendation, September 2026: https://aga.gov.au/publications/deeming-rate-recommendation-september-2026 Services Australia - Deeming: https://www.servicesaustralia.gov.au/deeming DSS rates list, 20 September 2026 indexation: https://www.dss.gov.au/system/files/documents/2026-08/rates-list-20-september-2026.pdf Want some of it back? Watch: 4 Legal Ways to Boost Your Age Pension at https://www.youtube.com/watch?v=N9uc-4YzXhw&t=48s GENERAL ADVICE DISCLAIMER This video is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal financial advice. Rates and thresholds change - the figures quoted are those applying from 20 September 2026. Before acting on anything here, speak to Services Australia or a licensed financial adviser about your own circumstances. A note on how this is made Every script starts with real research and is checked against current ATO and Services Australia figures - that part isn't automated. The narration and the visuals are produced with AI tools. I write, verify and stand behind every word. Thanks for being here. #AussieWealth #Superannuation #RetirementAustralia #AgePension #Centrelink #DeemingRates #PensionIncrease #IncomeTest