Home News How will pensioners benefit from the 2024 Federal Budget?

How will pensioners benefit from the 2024 Federal Budget?

The Federal Budget, previously touted as one of "relief, restraint, and reform," delivered a key victory for Australian pensioners, who might soon benefit from this notable change.

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How will pensioners benefit from the 2024 Federal Budget?

Unlike in previous Federal Budgets, direct relief for retirees and age pensioners (as well as pensioners more broadly) are light-on this year.

Deeming rates frozen again

Deeming rates will be frozen for another 12 months. These are essentially the rates the government deems assets held by those on social support to be earning, and haven't been lifted for a number of years now.

For a single, the first $56,400 of assets has a deemed rate of 0.25%, while anything over that is deemed at 2.25%.

Many term deposits and savings accounts are earning comfortably north of 4.00% p.a. and even 5.00% p.a.

If you had $50,000 in cash in a term deposit paying 5.00% p.a. interest fortnightly, you'd earn $2,500 a year or about $96.15 a fortnight.

Under the lower deeming rate, the government says you're earning $125 a year or about $4.81 a fortnight, which will factor in to your pension payments.

This will apply until 30 June 2025 and will benefit around 876,000 income support recipients, including around 450,000 Age Pensioners.

PBS co-payments frozen

There will be a one-year freeze on the maximum Pharmaceutical Benefits Scheme (PBS) patient co-payment for everyone with a Medicare card and a five-year freeze for pensioners and other concession cardholders.

This change means that no pensioner or concession card holder will pay more than $7.70 (plus any applicable manufacturer premiums) for up to five years.

Boosted Rent Assistance

Rent Assistance will also be increased by another 10% in financial year 2024-2025, adding to the 15% increase realised in September 2023.

The change will cost the Federal Government around $1.9 billion and impact approximately one million Australian households.

It will come into effect in September, when the rate is traditionally indexed against inflation.

How does this compare to last year's Budget? Check out our coverage of the 2023 Federal Budget for pensioners.

Need somewhere to store cash and earn interest? The table below features term deposits with some of the highest interest rates on the market.

Deposit amount

Compare

Provider	Interest rate	Interest frequency	Term	Automatic Rollover	Maturity Alert	Early Withdrawal Available	Minimum Deposit	Notice Period to Withdraw	Joint Application	Online Application	as ofAugust 21, 2024

	4.70^%_p.a.	Annually	12_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000		$product[$field["value"]]	$product[$field["value"]]	More details
A GREAT RATE FOR OVER 55s	Term Deposit (Platinum Plus 55+) - 12 months If you are over 55 you can take advantage of special rates $0 monthly account fee Guaranteed rate of return
A GREAT RATE FOR OVER 55s Term Deposit (Platinum Plus 55+) - 12 months If you are over 55 you can take advantage of special rates $0 monthly account fee Guaranteed rate of return More details
	4.95^%_p.a.	At Maturity, Monthly	12_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	25000	31	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 12 months (Monthly)
Term Deposit - 12 months (Monthly) More details
	5.00^%_p.a.	Annually, At Maturity	12_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	1000	31	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit ($1000-$500001) - 12 months
Term Deposit ($1000-$500001) - 12 months More details
	5.00^%_p.a.	Annually	12_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	1000	31	$product[$field["value"]]	$product[$field["value"]]	More details
	Personal Term Deposit - 12 months (Annually)
Personal Term Deposit - 12 months (Annually) More details
	4.50^%_p.a.	At Maturity, Annually	12_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	25000	31	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit ($25k-$5m) - 12 months
Term Deposit ($25k-$5m) - 12 months More details

Term Deposit - 11 months

Product Features

Guaranteed rate of return
Manage your term deposit online
Choose your own term - Options range from one month to five years

Minimum deposit$5,000

4.85%Interest rate p.a.

11Term

More details

Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of August 21, 2024. View disclaimer.

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Comparison Rate Warning and Base Criteria

For home loans, the base criteria include a $400,000 loan amount over 25 years. For car loans and personal loans, the base criteria include a $30,000 loan over 5 years. These rates are only examples and may not include all fees and charges.

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Monthly Repayment Figures

Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.

Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you.

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How will pensioners benefit from the 2024 Federal Budget?

Deeming rates frozen again

PBS co-payments frozen

Boosted Rent Assistance

Term Deposit (Platinum Plus 55+) - 12 months

Term Deposit (Platinum Plus 55+) - 12 months

Term Deposit - 12 months (Monthly)

Term Deposit - 12 months (Monthly)

Term Deposit ($1000-$500001) - 12 months

Term Deposit ($1000-$500001) - 12 months

Personal Term Deposit - 12 months (Annually)

Personal Term Deposit - 12 months (Annually)

Term Deposit ($25k-$5m) - 12 months

Term Deposit ($25k-$5m) - 12 months

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How will pensioners benefit from the 2024 Federal Budget?

Deeming rates frozen again

PBS co-payments frozen

Boosted Rent Assistance

Term Deposit (Platinum Plus 55+) - 12 months

Term Deposit (Platinum Plus 55+) - 12 months

Term Deposit - 12 months (Monthly)

Term Deposit - 12 months (Monthly)

Term Deposit ($1000-$500001) - 12 months

Term Deposit ($1000-$500001) - 12 months

Personal Term Deposit - 12 months (Annually)

Personal Term Deposit - 12 months (Annually)

Term Deposit ($25k-$5m) - 12 months

Term Deposit ($25k-$5m) - 12 months

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Editorial Integrity

Advertiser Disclosure

Product Coverage and Sort Order

Comparison Rate Warning and Base Criteria

Monthly Repayment Figures

Related Brands

General Advice Disclosure