The Gillard government is to step up its attack on the Coalition over the cost of living, using this week's rise in the pension to argue that nearly 3.5 million people would lose $1.1 billion a year under Tony Abbott.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The government will use analysis it has done on the impact of the Coalition's plan to scrap the carbon tax.
If the compensation is removed, single pensioners would lose $350 a year and a couple would lose $530, the government says. Over a fortnight, singles would be $13.50 worse off, while couples would lose $20.40.
However, it is understood the analysis does not factor in savings in lower household energy and food costs that are estimated to accrue from abolishing the carbon tax.
''There really is no greater example of the difference between Labor and the Coalition, whose only commitment to pensioners is to shamelessly rip money straight out of their pockets,'' Treasurer Wayne Swan said.
Families Minister Jenny Macklin said Coalition MPs should be ''knocking down Tony Abbott's door to stand up for the pensioners in their community and telling him to get his hands out of their pockets''.
The government said independent MP Rob Oakeshott's electorate of Lyne would be hardest hit in NSW if the tax were scrapped - 37,800 pensioners would lose $11.5 million.
Opposition Leader Tony Abbott has also said the Coalition would provide funded tax cuts and pension increases.
From Wednesday, single pensioners on the top rate get $35.80 more a fortnight, and couples an extra $54.
