How does Centrelink (Aust.) get away with deeming higher than current interest rates?

[giddyup]

I see Centrelink deems the first $48,000 at something like 1.75% and everything over that at 2.50%. The best I can get for an investment (term deposit) of $200,000 is around 2.0%, so why is Centrelink deeming higher than that? Please don't tell me because they can.

[TSF]

The only thing I can think of is because they can.

[MJCM]

- post withdrawn as this seem to be government related and not a private bank -

Edited May 29, 2016 by MJCM

[giddyup]

The only thing I can think of is because they can.

DH

[giddyup]

- post withdrawn as this seem to be government related and not a private bank -

Yes, Australian government agency responsible for paying pensions, benefits etc.

[MJCM]

- post withdrawn as this seem to be government related and not a private bank -

Yes, Australian government agency responsible for paying pensions, benefits etc.

Thanks !!

My original post was about a Private Bank who did the same thing (giving higher then average interest rates) back in Europe and then went Bankrupt.

Interesting read this (a bit offtopic though): https://en.wikipedia.org/wiki/Icesave_dispute

[manfredtillmann]

what do australians pay for their average home loan / personal loan / car loan?

seems like you are on a good racket with your 2.5%.

stop complaining. some ozzies who have paid taxes for 35 years don't even get benefits anymore because they are deemed 'too rich'.

[giddyup]

what do australians pay for their average home loan / personal loan / car loan?

seems like you are on a good racket with your 2.5%.

stop complaining. some ozzies who have paid taxes for 35 years don't even get benefits anymore because they are deemed 'too rich'.

You never answered the question. I get about 25% of a full Centrelink pension because I had the temerity to save for my retirement, paid into a pension fund and accrued some savings, so Centrelink is already penalizing me for that, but on top of that they actually want to penalize me more by deeming my savings as earning more interest than it actually does?

Edited May 29, 2016 by giddyup

[manfredtillmann]

what do australians pay for their average home loan / personal loan / car loan?

seems like you are on a good racket with your 2.5%.

stop complaining. some ozzies who have paid taxes for 35 years don't even get benefits anymore because they are deemed 'too rich'.

You never answered the question. I get about 25% of a full Centrelink pension because I had the temerity to save for my retirement, paid into a pension fund and accrued some savings, so Centrelink is already penalizing me for that, but on top of that they actually want to penalize me more by deeming my savings as earning more interest than it actually does?

what was the question again, please?

i have worked for 35 years in australia, first employed and later self - employed, at times engaging 20 workers.

i paid approx. A$ 2,000,000 in direct taxes and heaven knows how much more in indirect ones...

but i am not entitled to a government pension or any other benefits.

what exactly did you do as a contribution to the australian economy that entitles you to complain here now?

[giddyup]

what do australians pay for their average home loan / personal loan / car loan?

seems like you are on a good racket with your 2.5%.

stop complaining. some ozzies who have paid taxes for 35 years don't even get benefits anymore because they are deemed 'too rich'.

You never answered the question. I get about 25% of a full Centrelink pension because I had the temerity to save for my retirement, paid into a pension fund and accrued some savings, so Centrelink is already penalizing me for that, but on top of that they actually want to penalize me more by deeming my savings as earning more interest than it actually does?

what was the question again, please?

i have worked for 35 years in australia, first employed and later self - employed, at times engaging 20 workers.

i paid approx. A$ 2,000,000 in direct taxes and heaven knows how much more in indirect ones...

but i am not entitled to a government pension or any other benefits.

what exactly did you do as a contribution to the australian economy that entitles you to complain here now?

I don't have to justify a goddam thing to you, you know nothing about me. Now PO and go and troll someone else's post.

[stevenl]

what do australians pay for their average home loan / personal loan / car loan?

seems like you are on a good racket with your 2.5%.

stop complaining. some ozzies who have paid taxes for 35 years don't even get benefits anymore because they are deemed 'too rich'.

You never answered the question. I get about 25% of a full Centrelink pension because I had the temerity to save for my retirement, paid into a pension fund and accrued some savings, so Centrelink is already penalizing me for that, but on top of that they actually want to penalize me more by deeming my savings as earning more interest than it actually does?

what was the question again, please?

i have worked for 35 years in australia, first employed and later self - employed, at times engaging 20 workers.

i paid approx. A$ 2,000,000 in direct taxes and heaven knows how much more in indirect ones...

but i am not entitled to a government pension or any other benefits.

what exactly did you do as a contribution to the australian economy that entitles you to complain here now?

So you complain here about not getting anything, while accusing the op of complaining.

[manfredtillmann]

what do australians pay for their average home loan / personal loan / car loan?

seems like you are on a good racket with your 2.5%.

stop complaining. some ozzies who have paid taxes for 35 years don't even get benefits anymore because they are deemed 'too rich'.

You never answered the question. I get about 25% of a full Centrelink pension because I had the temerity to save for my retirement, paid into a pension fund and accrued some savings, so Centrelink is already penalizing me for that, but on top of that they actually want to penalize me more by deeming my savings as earning more interest than it actually does?

what was the question again, please?

i have worked for 35 years in australia, first employed and later self - employed, at times engaging 20 workers.

i paid approx. A$ 2,000,000 in direct taxes and heaven knows how much more in indirect ones...

but i am not entitled to a government pension or any other benefits.

what exactly did you do as a contribution to the australian economy that entitles you to complain here now?

So you complain here about not getting anything, while accusing the op of complaining.

am i complaining? i think the original poster is, but.

i just asked a question.

[manfredtillmann]

what do australians pay for their average home loan / personal loan / car loan?

seems like you are on a good racket with your 2.5%.

stop complaining. some ozzies who have paid taxes for 35 years don't even get benefits anymore because they are deemed 'too rich'.

You never answered the question. I get about 25% of a full Centrelink pension because I had the temerity to save for my retirement, paid into a pension fund and accrued some savings, so Centrelink is already penalizing me for that, but on top of that they actually want to penalize me more by deeming my savings as earning more interest than it actually does?

what was the question again, please?

i have worked for 35 years in australia, first employed and later self - employed, at times engaging 20 workers.

i paid approx. A$ 2,000,000 in direct taxes and heaven knows how much more in indirect ones...

but i am not entitled to a government pension or any other benefits.

what exactly did you do as a contribution to the australian economy that entitles you to complain here now?

I don't have to justify a goddam thing to you, you know nothing about me. Now PO and go and troll someone else's post.

no, you don't. but if you do not want your 'case' to be discussed - why post in the first place?

[oxo1947]

All I ask is a chance to prove that money can't make me happy.....................................

[giddyup]

no, you don't. but if you do not want your 'case' to be discussed - why post in the first place?

You really are a little thick aren't you. I don't want to discuss "my case" , I don't have "a case", I'm asking how Centrelink justifies deeming interest rates higher than they actually are. If you'd othered to read my header and my opening question you's know that. If you haven't got any information pertaining to my question, I suggest you go somewhere else.

[Flanno]

You are asking a question which only Centrelink itself can answer! So why don't you simply put your question to them? Then you can come back and advise the rest of us as to their reasoning. Simple as that.

[bamukloy]

You can easily get 3% interest rate for savings in Australia. If not, you are looking in the wrong places.

[giddyup]

You can easily get 3% interest rate for savings in Australia. If not, you are looking in the wrong places.

Tell me where?

[giddyup]

You can easily get 3% interest rate for savings in Australia. If not, you are looking in the wrong places.

If you are prepared to lock your money up for 5 years.

[BB24]

In the past DSS used to use forecasted and actual earnings - it was far too complex and costsly, so they went to a set deeming rate for all pensions.

Centrelink uses a combination of reserve bank interest rates, private interest rates, shares and superannuation returns.

CLink review the rates bi-annually (usually when pensions are indexed - March and September) and then they adjust them up or down (if decided they need to adjust).

https://www.dss.gov.au/our-responsibilities/seniors/benefits-payments/age-pension/deeming-information

Unfortunately this area is also very much 'interferred' with by the Govt - any decrease in deeming rates means an increase in pension payments (and budget problems). And of course the opposite occurs too - any increase in deeming rates means a better budget outcome.

Overall though, I have always found the deeming rates to be OK. But if you have your money in a bank account, then you are losing out, and I would suggest reviewing where you have your retirement savings. There are heaps of investment options that will return over 1.75%, and there are many that usually return over 3.25% (Superannuation being just one).