Dylan and Emma Fernandez are both aged 68. The couple have retired and own the following assets jointly. They were both born in Australia and have permanently resided here. They wish to apply for the age pension and own their home. They have approached you to determine their eligibility for the age pension.

REQUIRED:

1. Calculate the amount of pension they would be entitled to under the:
   1. Assets test; and
   2. Income Test
2. Explain what is meant by the term deeming rates. From the question above, provide an example of assets which are included and excluded from the deeming rules.

Value Actual Income $5,000 $95 Savings account Term deposit Exchange-traded Treasury Bonds Share portfolio $455 $6,450 $1,375 $16,000 $84,000 $39,000 $27,000 $48,000 $660,000 Car House contents House (principal residence) Rental property $471,000 (net rental income) $14,100