Turnbull government to cut concession cards from welfare recipients, targeting pensioners

EXCLUSIVE: Welfare recipients would lose their concession cards and up to $49.10 a fortnight under secret budget savings costed by the Turnbull government.

The Turnbull government are looking at scrapping all welfare payments below $20.02. Picture: AAP Image/Lukas Coch

• Don’t blow money to battle pension changes, experts warn
• Pensioners’ payouts at risk as new assets test looms

WELFARE recipients would lose their concession cards and up to $49.10 a fortnight under secret budget savings costed by the Turnbull government.

A leaked document reveals the federal Government looked at scrapping all welfare payments below $20.02 a fortnight as part of the May budget.

The change would affect all welfare recipients and specifically target aged pensioners who can organise their finances to receive nominal fortnightly payments.

Some retirees have been accused of restructuring their finances to fulfil the requirements of the assets and income test, allowing them to receive as little as $1 per fortnight.

The change would specifically target aged pensioners.

That nominal amount means recipients are entitled to the Pensioner Concession Card which provides lower-cost medicines as well as discounts on motor vehicle registration, drivers’ licences and council rates.

“The objective of this proposal is to simplify administration of the payments system by setting a consistent floor below which payments would not be made, to avoid making small fortnightly payments,” the costings document said.

In its advice, the department warned the government those affected by the change would include “some who have experienced substantial reductions in payments as a result of recent policy changes” such as the ­assets test.

RELATED

The document said the plan may cause “concern among affected age pension recipients”.

Despite costing the policy, Social Services Minister Christian Porter said the government had “no plans” for a minimum payment across all welfare ­categories.

Australian Council of Social Services (ACOSS) chief executive Dr Cassandra Goldie warned the government against welfare changes, saying Australia already has one of the most targeted systems of ­income support.

She said the costed proposal would put pressure on “people who are trying to make ends meet”.

“Once again, this kind of proposal targets people on low and modest incomes to make savings,” Dr Goldie said.

“Pensioners, people on allowances and single parents stand to be affected if they are getting a small part of their overall income from income support.

Labor’s social services spokeswoman Jenny Macklin said the proposal was proof the Turnbull Government again had “pensioners and vulnerable Australians in their sights”.

“Mr Turnbull still hasn’t learned the lesson from the horror 2014 Budget,” Ms Macklin said.

“Australians don’t want to see cuts made to pensioners, people with disability, carers and people on Newstart.”