Answers to Questions

PENSIONER CONCESSIONS

358 Mr HANNA (Mitchell) (4 November 2008). To what extent will the minister or his department increase pensioner concessions to address the effect of inflation on low income recipients?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations): The government is aware of the financial difficulties faced by people on low and fixed incomes.

The State Government provides a range of concessions on major charges (water and sewerage rates, electricity, council rates, public transport, the Emergency Services Levy and motor vehicle registration) to eligible South Australians.

In recent years, the government has introduced enhancements to a number of these concessions aimed at assisting people on low and fixed incomes meet the costs of living.

In January 2004, the government raised the annual Energy (electricity) concession from $70 to $120 (a 71 per cent increase), extended eligibility for this concession to self-funded retirees who hold a Commonwealth Seniors Health Card and provided a $50 once-off Electricity Transfer Rebate to concession recipients who switched to a market contract.

As part of the 2005-06 State Budget, Energy Concession recipients, which included self-funded retirees who held a Commonwealth Seniors Health Card, were provided with a once-off $150 Energy Bonus.

In July 2004, the government increased the annual water rate concession to $95 per annum. The government has introduced a further increase in the water concession from 1 July 2008.

The new water concession is set at 20 per cent of a customer's total water bill up to a capped amount of $200 for owner-occupiers. There is also a minimum concession of $95 per annum. The water concession has also been extended to include Commonwealth Low Income Health Care Card holders and qualifying tenants for the first time. For tenants, the amount of the concession is capped at $160 per annum, with a minimum of $55, in recognition of the fact that tenants aren't generally liable for the supply charge component of water bills.

The government has also recently announced that the sewerage concession (set at 60 per cent of the customer's bill up to $95) will be extended to Commonwealth Low Income Health Care Card holders from 1 July 2009.

As much as the State Government would like to be able to do more on the concessions it provides to low income earners, any further increase in the overall level of concession expenditure needs to be balanced against the many other spending priorities of the State Budget, including provision of adequate essential services such as health, education and police, and the need to keep the State's finances in a sound position.