Frydenberg signals changes to deeming rates

Josh-Frydenberg/interest-rates/rate-cut/coronavirus/

5 March 2020
| By Mike |
image
image
expand image

The Treasurer, Josh Frydenberg, has signalled the Government’s intention to revisit deeming rates on the basis of changed economic circumstances having made last year’s decision to reduce them now questionable.

Speaking in the context of December quarter national accounts and the changed circumstances with respect to the coronavirus and other factors, Frydenberg acknowledged the problems confronting self-funded retirees and others in a low-interest environment.

While pointing to the benefits to mortgage holders of this week’s interest rate cut, the Treasurer said this had nonetheless made things difficult for depositors.

“That is something that the Government is also considering, because you’ll remember last year we announced some changes to the deeming rate, the lower level deeming rate was brought down to 1%, the upper level deeming rate is at 3%,” he said.

“We are now having another look at the deeming rate. That change that we introduced and announced last year was around $600 million in terms of its cost, but we do recognise that both depositors and borrowers, are affected by the changing interest rates.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 6 days ago

TOP PERFORMING FUNDS