Answers to Questions

Council Rate Concessions

In reply to the Hon. M.C. PARNELL (13 May 2015).

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers): The Treasurer has been advised the following—

1. The government stands up for the most vulnerable members of our community. The commonwealth 2014-15 budget cut around $30 million from pensioner concessions in South Australia.

Following the 2014-15 commonwealth budget, it was this government that stepped in and funded council rate concessions.

2. We have always said that if the commonwealth reversed its cut, the SA government would reinstate the concession. This is why we took the decision to commit state funding to the shortfall left by the Commonwealth in the 2014-15 financial year.

On 14 May 2015, the Premier announced the introduction of a new cost of living concession to replace the council rate concession, commencing from 1 July 2015. The new concession is in direct response to the Abbott government’s failure to reinstate concessions funding to South Australia, as part of the 2015-16 commonwealth budget.

The concession will provide an annual payment per household of $200 for eligible pensioners and low income earners who own their own homes, $100 for eligible low income earners and pensioners who are tenants and $100 for eligible commonwealth seniors health card holders who are homeowners or tenants.

The new cost of living concession will enable about 205,000 households to put up to $200 towards their greatest needs, whether that is electricity, gas and water bills or council rates.

The new concession will cost the state government $36.5 million in 2015-16. In total the state government is expected to spend about $280 million on concessions in 2015-16.