June 3, 2014
Pensioners and low-income earners could be among the losers in today’s State Budget due to a shortfall in Federal Government funding.
Most South Burnett pensioners will be at least $78 a year worse off, losing 15 per cent of their Council rates subsidy and a similar amount off their power bills.
In its recent Budget, the Federal Government reduced funding for Pensioner Concession Card and Seniors Card holders by 15 per cent for a number of concessions jointly funded by both the Federal and State governments.
These cuts mean the State Government will receive $54.2 million less federal funding for certain pensioner concessions in 2014-15, and $233.2 million less over the next four years.
The concessions affected include the Electricity Rebate Scheme, the Pensioner Rate Subsidy Scheme, the South East Queensland Pensioner Water Subsidy Scheme, vehicle registration concessions, Translink concessions for seniors and the Rail Concession Scheme.
The State Government said today it would be maintaining its own 85 per cent subsidy for these schemes but would pass on the 15 per cent Federal cuts in full rather than topping up the funding shortfall from its own resources.
This change will also flow on to Council Budgets because that is how many of the concessions pass to individuals.
For seniors, this could mean 15 per cut cuts to the following maximum annual concessions:
- Electricity Rebate Scheme ($321 current maximum annual concession)
- Pensioner Rate Subsidy Scheme ($200)
- SEQ Pensioner Water Subsidy Scheme ($120)
- Reticulated Natural Gas Rebate Scheme ($68)
- Translink Transport Concessions (a 15 per cent cut to the 50 per cent discount they currently receive).
The Federal Government cuts are expected to come into force on October 1 if they are passed by the Senate.
The State Government provides an additional $5.1 billion in concessions across many other programs, which are fully funded out of its own resources.
Treasurer Tim Nicholls said these other concessions – which cover everything from Vehicle and Boat Registration Concessions to the Hendra Virus Rebate to Front Line Veterinarians – would not be affected.
The Concessions Statement from today’s 2014-15 Queensland State Government Budget outlining all the State Government’s concession schemes and rebates can be downloaded here (700kb PDF)
