Deeming Fund

You may find this particularly interesting if you have ‘financial investments’
Extended Deeming is the term given to the way the Centrelink and the Dept of Veteran Affairs asses your financial investments and determine how much pension or allowance (if any) you will be paid.

With the introduction of extended deeming in 1996 came a change in the way your financial investments were assessed and replaced a number of existing complex rules.  Extended deeming applies to your ‘financial investments’ which are:

• Cash, term deposits, savings accounts, passbook accounts (including special deeming and pensioner bank accounts)
• Shares and other listed securities
• Investments in managed funds and trusts
• Loans, bank bills, notes, debentures etc
• Currency, gold and other bullion
• Rollovers and superannuation investments (held by a person over Age Pension age)

In assess the amount of your additional income for the purposes of calculating your pension, the Government will deem (in normal cases) you to earn a designated interest rate on your investments regardless of the actual interest rate you are earning.

By placing your funds in an Exempt Deeming Account, the Government exempts these funds from the deeming rules.

The current designated deeming interest rates are available by contacting Centrelink on 132300 or by visiting www.centrelink.gov.au.

Money that id deposited with the Roman Catholic Archdiocesan Development Fund of Brisbane (ADF) is exempt from the Centrelink and Dept of Veterans Affairs deeming provisions.  This means that your deposits in ADF will be assessed as earning the actual rate of interest being paid and not the designated deemed rate.  As no interest is paid to you in relation to your deeming deposit the deemed income you receive from your deposit or financial investment in the deeming account will be nil for Income Testing purposes.  Although you will not be receiving interest, your pension (if applicable) may increase due to the reduction in your interest.

However, for the Assets Test your deposit may still be classified as an asset.  The interest earned from your Deeming Account goes directly to Holy Spirit Care Services and ultimately to improving facilities for all of our residents.  Any deposits lodged in the Deeming Account are your funds and as such are not assets of Holy Spirit Care Services.   Any amount over $5000 can be deposited into the fund and all funds are ‘at call’. 

Withdrawals of amounts over $2000 usually require 24 hours notice.

Frequently Asked Questions:

Why would I open a Deeming Account?
To reduce your exposure to the Government’s income testing rules and still have full control over your money.  In addition, the interest earned on your Deeming Account goes directly to Holy Spirit Care Services to help support the mission to enhance the lives of people through our Christian quality of care and service.

Who can open a Deeming Account?
Anyone can open a Deeming Account; you don’t have to be a resident of Holy Spirit Care Services.  All you need is a minimum deposit of $5000.

How can I open a Deeming Account?
Contact Holy Spirit Care Services Community Programs Manager [click and takes to email: abrown@holyspirit.com.au or phone 3236 0300 and a representative will arrange an appointment.

How do I access my funds?
Cash withdrawals of amounts of $2000 and over require 24 hours notice and a request should be made in writing.  The funds are then transferred to your nominated account.  All cash withdrawals will need to be made through the ADF office, located on the Ground Floor of The Catholic Centre, 143 Edward St Brisbane.

Can I use internet banking?
Yes, ADF has internet banking.  To activate internet banking, please contact ADF on 3336 9289.

How do I make further deposits?
You can request a special deposit book by contacting ADF on 3336 9289 or you forward your cheque with a covering letter to ADF, GPO Box 282 Brisbane Qld 4001

Are there any fees on the account?
There are no fees or charges on the Deeming Account.  There are also no establishment or exit fees on opening and closing the Deeming Account.

Will I get a statement?
You will receive a statement for your account every six (6) months.  If you require your bank statement more frequently, contact ADF on 3336 9289.

How can I close the account?
Provide 48 hours notice that you want to close the account.  Your funds can be transferred to you either electronically, in cash or via cheque.