House debates

Wednesday, 14 October 2015

Bills

Social Services Legislation Amendment (Cost of Living Concession) Bill 2015; Second Reading

9:50 am

Photo of Christian PorterChristian Porter (Pearce, Liberal Party, Minister for Social Services) Share this | Hansard source

Well, indeed, but it still takes a bit of courage. This is a beneficial measure for certain people who will be receiving new payments. You might have been confused, Mr Deputy Speaker, as to whether this is a beneficial measure, after hearing members opposite, but it is indeed a beneficial measure. If I might, just by way of summing up, explain why.

From September 2015, the South Australian government is introducing a new cost-of-living concession payment. That payment will replace the South Australian council rates concession, which was previously a discount on rates bills. That measure ceased on 1 July 2015. Under the old South Australian council rates concession, eligible people received a $190 per annum rates discount. Now, the new cost-of-living concession payment that will be operative in South Australia will be a direct payment to eligible people rather than offering, as was the case under the old system, a discount off people's rates bills, which was the previous way the South Australian council rates concession operated.

There are two elements to the new South Australian cost-of-living concession payment. The first element of the cost-of-living concession payment provides an annual $200 direct payment per household to pensioners, other income support recipients and low-income earners who are homeowner-occupiers. Self-funded retirees in receipt of a Commonwealth seniors card will receive an annual $100 direct payment per household under the cost-of-living concession payment in South Australia. The second element of the South Australian cost-of-living concession payment is that support has been extended to include tenants, whereas the previous council rates concession was solely limited to homeowner-occupiers. Under the cost-of-living concession payment, pensioners, other income support recipients and low-income earners who are tenants will be able to receive an annual $100 per household direct payment. So, well done to South Australia in undertaking its obligations in this regard.

The Commonwealth, providing this income test exemption, the subject of the present bill, is consistently acting with the income test exemption that was put in place for the Western Australian cost-of-living rebate scheme in 2012—in fact, a scheme I remember well because it was enacted by an excellent Treasurer at the time!

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