The new Centrelink deeming provisions applying to Account Based Pensions (ABP’s), detailed in the attached Fact File, will come into effect on 1 January 2015. Persons most impacted will be pensioners who have other substantial assessable income in addition to their ABP’s as they may see a reduction to their social security entitlement, such as the Age Pension. Persons not in receipt of a means tested pension or allowance as at 1 January 2015, such as those currently too young to qualify for the Age Pension, may also be adversely affected under the new deeming rules. Persons who may be better off are those who currently draw significantly more than their deductible amount (the amount Centrelink currently disregards under the income test). Persons with relatively large assessable assets will not be affected by this change as their entitlement will be determined by the assets test even if deemed income from the ABP is counted for income test purposes. Grandfathering provisions apply for many people with existing ABP’s where they are also in receipt of a social security benefit when the new rules take effect.

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