We ARE all going to pay.
If you are a pensioner or a senior citizen, you WILL be hit more than anyone else.
It has been labelled as the most unfair federal budget in Australian history. Pensioners, in particular, are facing concession cuts in the form of public transport trips, council rates, water bills, electricity and fee exemptions for driver’s licenses.
The decision came despite Tony Abbott’s original claims that there would be “…no cuts to education, no cuts to health [and] no change to pensions” during an ABC interview in September last year.
[Thankfully], a recent budget reprieve by the NSW government reveals that pensioners will be spared such cuts to concessions on basic living expenses.
Seventy-two-year-old Maria Trinidad says she is relieved and that she “could not live without the assistance.”
“The cost of living is rising,” she says and she almost decided to go back home to the Philippines.
Though the federal budget is anticipated to slow down pension rate increases in the long-term, it might be more difficult for pensioners to cope with daily living expenses.
In June, NSW Treasurer Andrew Constance announced that the Baird government will fund a $107 million shortfall left by the federal budget.
The move to cushion Abbotts’ budget was decided after public responses and pensioner reactions were negatively received.
What does this mean for you?
The rumours are true. The NSW budget commitment of $107 million will maintain most pensioner and seniors’ concessions.
The reprieve, according to Sydney Morning Herald Politics Editor Kirsty Needham, will include discounted vehicle registration, affordable $2.50 fares across train, ferry and the bus network and $250 discount on council rates to pension card holders.
A $235 rebate on electricity bill is also included in the reprieve.
For pensioners staying with family and caring for grandchildren like Mrs Trinidad, this reprieve has eased some financial strain she was anticipating.
Mrs Trinidad would’ve lost about $100 to $200 a year in concessions.
“I don’t spend too much on myself,” she says. “But with those concession cuts, I will not be able to pay for specialist medical bills or even buy weekly groceries.”
Unfortunately, the NSW government will only be able to cover the budget shortfall for ONE year.
All pension increases — including age and disability support pensions, could be otherwise cut entirely from 2017.
One of federal budget decisions that the NSW government could not remediate is the raised retirement age to 70 from 2035.
Considering the rise in cost-of-living expenses and proposed cuts to concessions that will have a negative impact on pensioners, state and federal leaders must negotiate.