The ACT Council of Social Service has warned the Barr government against cuts to concessions, arguing they are essential to the lives of people experiencing disadvantage in the Canberra community.
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Last month Chief Minister Andrew Barr flagged likely cuts to ACT government concessions and discounts, arguing their cost had increased 9 per cent a year over the past five years, amounting to $46.7 million in 2013-14.
In the ACT, seniors and pensioners, people on low incomes, veterans, people with disabilities and students can access a range of concessional prices and other discounts on everything from power and gas bills to bus tickets and car registration.
The changes come as the ACT government faces a $770 million budget deficit this year, and a $250 million deficit in 2015-16.
In a submission to the government review released on Friday, ACT Council of Social Service director Susan Helyar said the current levels of concessions could need to be expanded, not cut, as they are essential to low income earners being able to afford the fundamental necessities of life, including clothing, food and medicine.
An associated report on cost of living found no easing in housing costs for Canberrans living on low incomes, with the city currently on par with the most expensive places to live in Australia. Canberra's cost of living per year stands at $72, 266, level with Sydney and Darwin.
The council recommended no change to concessions or entitlements without meaningful public consultation, called for cost-benefit analysis of how cutting pensions could affect other government costs, and proposed analysis of what eligibility to concessions wealthy households and individuals currently have.
Concessions should be introduced for probationary and restricted driving licences, a more substantial concession for the alcohol interlock scheme should be implemented, and increased assistance should be provided for low income homeowners to retrofit for energy efficiency.
Other proposals include asking the Commonwealth to share the costs associated with concessions given to people registering diplomatic vehicles in the ACT, and assessing whether a streamlining of administration costs could produce cost savings without reducing concessions.
The submission highlights housing costs, ongoing changes to the Canberra labour market, unemployment and underemployment as central issues for consideration, while assessing the poverty line at $400 for an individual and $841 for a family with two children.
"We recognise that the ACT government does need to find ways to balance its budget, particularly given proposed cuts to the GST allocation to the ACT and several years of cuts in public sector spending by the Commonwealth," Ms Helyar said.
"But this cannot come at the expense of people struggling most with cost of living pressures.
"A thorough review of the ACT concessions program should consider the possibility that an expansion not reduction in the concessions program is needed, building on the 2012 Targeted Assistance Strategy, and assisting households in precarious financial circumstances to sustain access to key resources such as healthcare, utilities and a private vehicle."
Federal Treasurer Joe Hockey is also considering changes to pensions to save money in his upcoming budget.
On Saturday he said there was a "compelling" case to split access to health concession cards from pensions, particularly for high income earners.
Mr Hockey said many higher-income earners arranged their finances in order to access the age pension, and in turn become eligible for cheaper healthcare and medicines.
Mr Barr will hand down the 2015-16 ACT budget on June 2.
