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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-04-07 Daily Xml
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PENSIONER CONCESSIONS

94 Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (30 September 2008). With respect to the 2008-09 budget papers, what are the details and breakdown of the $21.7 million allocated to 'Commonwealth specific purpose grants—concessions to pensioners' in 2008-09 and is this paid to an agency and if so which one?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations): I am advised that from 1 April 1993, the Australian Government abolished the separate fringe benefits income and assets tests which extended the Pensioner Concession Card to all part rate pensioners and certain older long-term allowance recipients. In response to states and territories' concern that an increase in the number of eligible card holders would impact on their state concession programs, the Australian Government agreed to provide an annual payment as compensation for the increased costs of core concessions-utilities, municipal and water rates, public transport and motor vehicle registration. This payment is the 'Commonwealth Specific Purpose Grants—Concessions to pensioners and others'. Payments are contingent on the States and Territories' confirmation that they continue to provide the agreed core concessions to all pensioners without discrimination.

Payments are distributed according to the proportions agreed between the Commonwealth and the States in 1993 with reference to the distribution of concession cardholders by State and Territory. The 1993 proportions were derived by dividing the 'total funding pool' by the proportion of State funding spent on these concessions in 1993-94 in each State. The total funding pool was established by multiplying the1993-94 core concessions average value, set by national benchmarks, by the number of part-pensioners. Payments are made quarterly and indexed to the growth in the population of Pension Concession Card holders and an inflation factor, the wage cost index.

The Commonwealth grant is paid to South Australia's Consolidated Account and then the Department for Families and Communities (concessions for utilities, municipal and water rates and public transport) and the Department for Transport,

Energy and Infrastructure (concessions for motor vehicle registration) receive appropriations for concessions through the state budget process.

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