Understanding Deeming and Your Accounts
There is no specific product at Westpac known as a "deeming account." The term "deeming" actually refers to a method used by Services Australia (Centrelink) to assess the income generated by your financial assets, such as savings accounts, term deposits, and shares, for the purpose of the Age Pension. The government assumes your assets earn a specific rate of return, regardless of the actual interest rate your Westpac account may be paying.
When you hold money in a standard Westpac savings account, Services Australia applies these deeming rates to determine your eligibility for payments. Since the bank does not manage your deeming calculation, it is important for you to regularly report your current account balances to Centrelink to ensure your pension entitlements are calculated correctly.
Key Reporting Details
| Category | Details |
|---|---|
| Methods | MyGov (Services Australia portal), Express Plus Centrelink app, or branch visit. |
| Processing Time | Updates to asset values usually reflect within a few business days of reporting. |
| Eligibility | Age Pension recipients and those receiving income support. |
| Key Requirements | Your Customer Reference Number (CRN) and updated balance statements. |
Step-by-Step Guide: Managing Balances for Centrelink
- Retrieve your current balance: Log into Westpac Live or the Westpac app to view the precise current balance of your accounts.
- Access your MyGov account: Log into your MyGov account and navigate to your linked Centrelink profile.
- Update your financial assets: Select your bank account details and update the balance to match the current figure.
- Submit the update: Confirm the changes. Centrelink will use this updated figure for their next deeming assessment.
- Retain records: Save a copy of your Westpac statement or the confirmation screen from Centrelink for your personal records.
Troubleshooting Common Issues
- MFA and Login Issues
Cause: You are unable to log in to update your details because your MyGov or Westpac digital token is not working.
Simple Fix: Ensure your mobile device has a stable internet connection. If the app is failing, try logging in via a desktop browser.
Fallback: Visit a Service Centre or call the Centrelink reporting line if you cannot resolve the digital access issue. - Browser or App Errors
Cause: Outdated browser cookies can sometimes cause the reporting portal to show incorrect page elements or prevent submission.
Simple Fix: Clear your browser cache and cookies, or try using a private browsing window to access the government portal.
Fallback: Contact the technical support helpdesk listed on the MyGov website for portal-specific issues. - Locked Account / ID / Access Issues
Cause: You may be locked out of your banking app or MyGov due to multiple incorrect password attempts.
Simple Fix: Use the "Forgot Password" function on the login screen to reset your credentials via your registered email or phone.
Fallback: Visit a branch with your identification documents to reset your Westpac banking access.
Pro-Tip: Whenever you change your account balance—such as after closing a term deposit or making a large withdrawal—set a reminder to update your details with Services Australia shortly after. In practice, keeping your asset declarations current prevents potential overpayments or underpayments of your pension.
Frequently Asked Questions
Why is the interest rate on my Westpac account different from the deeming rate?
The deeming rate is a set figure determined by the government to simplify how they assess income, whereas your Westpac interest rate is set by the bank based on market conditions. If your account pays a lower interest rate than the government's deeming rate, you are effectively "deemed" to earn more than you actually do. If this happens, you may want to review your investment strategy, but your next step should be to use the official deeming calculators on the Services Australia website to understand the impact on your payment.
Does Westpac automatically report my account balances to Centrelink?
No, Westpac does not automatically update your assets with Services Australia on your behalf. While some government information sharing exists, it remains your personal responsibility to ensure the income and asset values reported to Centrelink are accurate. If your circumstances change, you must manually update your profile via MyGov. Always check your Centrelink summary to see if the information they have on file matches your current Westpac statements.
What if I have money in a joint account?
If you hold a joint Westpac account, Centrelink typically assesses each person as owning half of the balance for deeming purposes. This ensures that the income is split equally between the account holders in their assessment. If you are unsure how your specific joint arrangement is being calculated, view your details in the "My Profile" section of your MyGov account or call Centrelink to confirm their assessment of your shared assets.
