An overhaul of the territory's concession discounts means ageing Canberrans won't be able to get a seniors card until they're 65, a move community groups and unions warned against prior to the budget.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The government will also make small increases to emergency services and victims of crime levies, introduce a new family violence levy, while increasing driver's licence fees, parking fees and motor vehicle registration.
And the roughly 3000 households currently receiving an uncapped 50 per cent rebate on their general rates will also take a hit, with the government freezing their discount at 2015-16 levels in an effort to stop the spiralling cost of the scheme.
But fears of significant cuts to concessional discounts on public transport, motor vehicle registrations, driver's licences, taxis, spectacles and funeral assistance have not been realised, news that will be received with relief for struggling Canberrans.
The ACT government earlier this year signalled it would embark on a major overhaul of the concessions system to rein in spending.
This year, the cost of concessions to the budget was $51.3 million. In 2016-17, the total spend will be $53.5 million.
The ACT government will increase that slightly over the next four years, adding $35.1 million to meet increasing demand.
The government will gradually push up the eligibility age for the ACT seniors card, currently at 60.
The eligibility will increase to 61 by July next year, and then by another year every two years until it hits 65 in 2025.
That was a move that many groups, including Unions ACT, had warned against for its lack of fairness. They instead called for a needs-based test to better target seniors concession eligibility.
But Chief Minister Andrew Barr said the changes were only gradual and over a decade-long period, and reflected longer life expectancy and Commonwealth changes to the pension age.
He said overall the changes better targeted support for low-income families, while ensuring the "sustainability" of the system.
"It is a very gradual change over a decade, it reflects changes of eligibility that are occurring elsewhere, the Commonwealth pension age is increasing," Mr Barr said.
"I think it is fair to, over a decade-long transition, gradually increase the eligibility age for a non-means-tested concession.
"I think that's a fair measure, gradually introduced."
Another important change in Tuesday's budget will see freezing of rates discounts for some vulnerable Canberra households.
There are about 10,000 Canberra households currently receiving a 50 per cent rebate on their general rates.
About 7000 of those have the rebate capped at $700, but that does not apply to a further 3000, who began receiving the discount before 1997.
Those getting the uncapped discount effectively receive substantially more, because the average rates bill is now roughly $1800.
The ACT government has now frozen the level of rates discount to those 3000 homes at 2015-16 levels, meaning the rebates will not grow as rates continue to increase.
The changes will see a combined utilities concession from 2017-18, in place of separate discounts for electricity and water and sewerage.
That reform is designed to shift support to low-income renters, as well as home owners.
"We do this principally through the combined utilities concession, which ensure those who are renting, particularly those in the lower income quintiles, receive the full benefit of this new targeted utilities concession," Mr Barr said.
The 2016-17 budget has also made some increases to fee and levies.
Motor vehicle registration is up five per cent, increasing government revenue by $8.6 million.
There will be small increases to the ambulance levy, up $5 per year for individuals and $10 per year for families, the fire and emergency services levy, $10 for residential and rural properties, and the victims services levy.
Driver's licence fees are expected to increase by five per cent, although there will be exemptions for safer drivers who have not incurred demerit points.
A levy of $30 per year will be applied to all residential and rural properties to pay for the government's new family violence package. That levy is expected to raise $4.7 million in in 2016-17.
Concession overhaul, levies increased
– Eligibility age for senior cards to rise from 60 to 65 by 2025
– New levy for family violence, and small increases to levies for ambulance, fire and emergency services, and victims services
– Uncapped discounts of 50 per cent on general rates to be frozen at 2015-16 levels, affecting 3000 households
– Driver's licence fees, motor vehicle registration up five per cent
