Prime Minister Scott Morrison has confirmed his government will freeze Deemed Rates, which make it easier for pensioners to pay and report pensions, for two years after yesterday’s interest rate hike.
The Coalition says 890,000 Australians will benefit, including 450,000 elderly pensioners. Mr Morrison also called on banks to pass on the interest rate hike to deposit holders, as they have done to mortgage customers.
“The other thing I would say is that banks have always been very quick to pass on higher interest rates to mortgage holders, they should be just as quick to make sure those changes happen. pass on to deposit holders, like the ones we’re here with today,” he said.
“And I think that’s only fair. What we’re announcing here on presumptive rates is to give retirees and self-funded retirees a fair chance.
“They’ve saved a lot for their retirement. They’ve also done the tough stuff over the last two or three years.
“We want to make sure they have a fair future and that’s what our economic shield is for.”