The 50 per cent discount goes to people on Centrelink benefits and veterans.

The ACT government is reviewing the rebates, discounts and concessions it hands out to seniors, veterans and people on low incomes to rein in increasing costs.

Among the targets are people only paying half their rates bills.

About 14,000 households get a rebate of up to 50 per cent of their rates bills, but for most it is capped at a discount of $700 a year (which is less than half of the average rates bill of $1820 a year). But for 3000 households, the rebate is uncapped.

For these households, which joined the scheme before the cap was introduced in 1997, the average discount is about $900.

For households in the most valuable suburbs, the rebate amounts to $2000 a year or more – with marked increases in land values in the inner north and inner south. In Ainslie, the average rates bill is $2900, which would mean an uncapped rebate of $1450. In Red Hill, the average rates bill is $4300, which would equate to a rebate of $2150.

In a discussion paper, the government notes that abolishing the uncapped rates would have a significant impact on some households, and suggests three options:

Government figures suggest that of the 14,000 households receiving a rates rebate, 2150 are in the top two income quintiles.

Another target of the concessions review are about 3000 households in the top two income groups who receive discounts on water and sewerage bills.

In all, 29,000 households get a discount of up to $426 on their power bills and 15,000 households get a discount of $413 on water and sewerage bills. They are available to people on Centrelink benefits, with health care cards and veterans. In the case of water and sewerage discounts, they are also paid to people with veterans gold cards.

The government is considering scrapping the water and sewerage discount, since only home owners can access it, and transferring the money to power rebates.

An alternative would be to reduce the water and sewerage discount by about $110 a year, to $304 (50 per cent of the supply charge instead of 68 per cent), phased in over four years.

The government is also reconsidering rates discounts for 328 not-for-profit groups, religious groups, sporting groups, childcare centres, schools and universities, and retirement villages. At the moment, they pay nothing, but the discussion paper suggests valuing the properties and reconsidering the policy.

Car registration fees are in the spotlight, with 37,000 Canberrans paying no registration – including Centrelink pensioners, veterans and veteran gold card holders and diplomats. The government suggests offering a half-price registration for everyone except veteran gold card holders, a move that would save $4.3 million a year.

It is also looking at increasing the age for Seniors Cards discounts from 60 to 65, phased in over a decade. At the moment everyone aged 60 or more who works half time or less gets discounts on car registration, glasses and bus fares. But the ageing population means spiralling costs.

Seniors Card holders might also lose their discounts on bus fares, or the discounts might be restricted to seniors travelling outside peak hours. At the moment, half a million discounted bus trips are taken by Seniors Card holders.

Discounts for part pensioners are also being reconsidered. About 11,000 Canberrans who get part pensions from Centrelink have access to the same discounts as people on full benefits, and the government has suggested cutting their discounts to 50 per cent or 75 per cent of the full amount.

A sweetener is proposed for families receiving family tax benefit part A, with about 9500 families receiving the Centrelink payment not eligible for any ACT concessions. The government suggests giving them a $100-a-year rebate on power bills, pointing out the inequity of pensioner couples with no dependents being able to earn to $75,000 and still receive significant concessions.