CONCESSION SCHEMES

The Hon. T.A. FRANKS (15:19): I seek leave to make a brief explanation before asking the Minister for Communities and Social Inclusion and Minister for Social Housing a question on concessions.

Leave granted.

The Hon. T.A. FRANKS: The Council on the Ageing's Chief Executive, Ian Yates, is reported as having raised concerns that South Australian state-administered concessions schemes have failed to meet the needs of desperate pensioners and other low-income earners with the spiralling cost of living. My office, and no doubt many offices of MLCs in this chamber, have been contacted by constituents who are concerned that federal pension increases intended to assist with covering the cost of living increases have been targeted by this state government and clawed back. The changes to the commonwealth rent assistance for community housing tenants is, for many, the last straw. With pensioners struggling, as I say, to afford the basics of essential services such as electricity, gas and water and the significant health implications that this has, my questions are:

1. Will the minister support a federal takeover of existing state-based concession schemes to ensure a more effective, consistent and compassionate approach than that given, and that what is given by the federal government is not clawed back by this state government, and that pensioners and other low-income recipients are not further disadvantaged?

2. If the minister does not support that course of action, can he then commit this government to introduce legislation or policy to ensure that concessions are indexed to the CPI to ensure that recipients are not simply left behind by rising prices?

3. At a minimum, can the minister also give an undertaking to review the consistency and adequacy of the state government's policy on concessions to ensure that some of our state's most vulnerable are not left behind by this government?

The Hon. I.K. HUNTER (Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Disabilities, Minister for Youth, Minister for Volunteers) (15:21): I thank the honourable member for her very important question. The South Australian government provides eligible applicants with a range of concessions towards public transport and household costs, including energy, water, sewerage, council rates and the emergency services levy on fixed property. An increase in the rates and eligibility criteria for a range of concessions commenced on 1 July 2010.

Holders of Centrelink low-income Health Care Cards are eligible for energy and emergency services levy concessions, building on an earlier decision to extend the water and sewerage concessions to this group. From 1 July 2011 the water concession increased from 20 per cent of the total annual water bill to 25 per cent of the total annual water bill within prescribed minima and maxima. The minimum water concession for homeowners increased to $100 per annum from 1 July 2010 and will peak at $155 per annum in 2012-13. The maximum increased to $210 per annum on 1 July 2010 and will extend to a maximum of $265 per annum in 2012-13.

For tenants, the minimum water concession increased to $58 per annum from 1 July 2010 and will peak at $90 per annum in 2012-13. The maximum increased to $168 per annum on 1 July 2010 and will extend to a maximum of $200 per annum in 2012-13. Concession rates for energy, sewerage and the emergency services levy fixed property, will increase by 5 per cent per annum until 2012-13. The energy concession maximum increased to $150 per annum on 1 July 2010, reaching a maximum of $165 per annum in 2012-13. Sewerage concessions increased to $100 from 1 July 2010 and will reach $110 in 2012-13. The emergency services levy fixed property concession increased to $42 per annum from 1 July 2010 and will reach $46 per annum in 2012-13.

No changes have been made to the eligibility criteria and rates for council concessions. These concession increases supplement the government's announcement in July 2009 to provide holders of a valid Seniors Card free public transport between 9.01am and 3pm on weekdays, weekends and public holidays, in addition to the 50 per cent reduction at all other times. The 50 per cent reduction on public transport ticket price for other eligible Centrelink pensioners and beneficiaries will continue.

A new medical heating and cooling energy concession will be implemented on 1 January 2012 to assist people on low or fixed incomes who incur high electricity costs because of their medical need to use air conditioners and/or heaters on a frequent or prolonged basis. The new flat rate concession of $158 per annum will be available to eligible applicants, in addition to the current energy concession of $158 per annum. This concession will increase to $165 per annum on 1 July 2012. The new arrangements have been integrated into ongoing work to implement a new concessions processing system.

I put all those figures on the record to indicate just how much the state Labor government is committed to supporting those on low incomes and those in need. We will continue to supply concessions to those who meet the eligibility criteria because we know, as a government, that our job is to help those people meet the rising cost of living.