[Tracey Walker]

Hi,
I have been asked the question from my finance manager this morning in regards to the release of the Federal Budget last week. I know that there is a financial impact with the Financial Assistance Grant, but he also seems to think that there is an impact on the subsidy that we receive for the pensioner concession rebate. He seems to remember something about the percentage received decreasing.
Does anyone know anything of this?
I have looked through the budget papers released but I can not seem to find anything.
Any assistance would be greatly appreciated.
Thanks

[Mchelle Morris]

Hi Tracy

Here is the link to the section in the budget:

http://www.budget.gov.au/2014-15/content/bp2/html/bp2_expense-21.htm

Look under Certain Concessions for Pensioners and Seniors Card Holders.
This refers to the termination of the National Partnership Agreement on Concessions for Pensioners Concession Card and Seniors Card Holders.

The link to the Partnership agreement is:

http://www.federalfinancialrelations.gov.au/content/npa/skills/concessions_pensioners/national_partnership_2013.pdf

I spoke to Helen Pearce at the DLG on Friday and they are aware of the issue but at this stage are unsure of the impact – whether a State or Local Govt issue.

regards

[Emma Murphy]

Thanks Mchelle, just wondering has anyone else found anything further…

[Emma Murphy]

Also, is anyone aware of state legislation that says council must offer selected pensioners a discount on their rates.

[John Towers]

Hi Emma

Sec 575(1) LGA is the authority.

JT

[Robert Hay]

Hi

In this weekends SMH
http://www.smh.com.au/nsw/pensioners-concessions-safe-treasurer-promises-20140607-39puf.html

[John Towers]

Just a further comment regarding this, the mandatory rebate at this stage is set in concrete by legislation so a change to the rebate would require legislative change.

What isn’t set in concrete is the funding of the rebate. Since 1993 (yes I was doing this stuff then) the Council has funded 45% of the mandatory rebate with the State contributing 55% (with some Federal assistance). Prior to this it was 50/50 between Council & State.

With the Federal budget, the Federal contribution has been withdrawn which means that either the State has to find additional monies from within it’s budget to meet the 5% shortfall or the funding model will change.

From discussions I have had it has been suggested that the funding model will revert to the former model ie 50/50.

I appreciate it is late in the budget process but I believe Councils should be looking at worst case scenario for their budgets.

Yes this will have a bigger impact on Councils which have a high ratio of pensioners in that the rebate contribution from the State will be reduced & the Council will need to find additional monies to fund their proportion of the rebate.

JT

[John Towers]

Following the state budget release yesterday I ask OLG the impact on Councils re funding of the mandatory rebate. The following was received from Mark in response to my enquiry:

As announced in yesterday’s budget, the State Government has agreed to “step in” and fund the shortfall in funding from the Federal Government for concessions for 2014/15. That means councils will continue to be reimbursed 55% of the cost of the concession/s (rates and DWMC and water & sewer, where the council provides those services). This commitment is for 2014/15 only – the State Government has indicated it will be seeking to negotiate with the Federal Government for the reinstatement of the grant funding over the next 12 months. While this may create some uncertainty for future years, councils can be assured of a 55% reimbursement for 2014/15. A press release regarding the matter is: http://www.budget.nsw.gov.au/__data/assets/pdf_file/0006/124359/14.2_Minister_Ajaka_-_State_Budget_Protects_Senior_and_Pensioner_Concessions.pdf

Thanks to Mark for the response.

JT

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