Self-funded retirees will lay out the impacts of recent rates rises on their hip pocket before a parliamentary inquiry, as new modelling shows single pensioners living in Canberra's inner suburbs have been hardest hit by the increases.
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A Legislative Assembly committee investigating the change in rates calculations for people living in units and apartments will hold its first hearing on Wednesday.
Scheduled to give evidence are Peter and Carol Dunnet, self-funded retirees who told Fairfax Media in April they were "a bit late for the super-club" and instead invested in property for their retirement.
The couple, who own three properties and live off $50,000 a year, have seen the rates on their Manuka unit rise from $1153 in 2013-14 to $2016 in 2017-18. Land tax jumped from $1142 to $3044 in the same period.
"The increases in electricity and gas as well as rates and land tax are making it very difficult for people on fixed incomes, who get no government handouts because they have lived within their means and invested wisely. We are the ones who are just above the pension line," Mrs Dunnet said at the time.
The hearing comes after the ACT government released modelling on the socio-economic impact of its rates rises on people on full and part pensions, as well as fixed-income retirees across five Canberra suburbs, as part of its budget papers.
Rates for detached homeowners will rise 7 per cent on average for the coming year, or about $172, to an average of $2474, while unit owners face a 10 per cent, or $135 rise on average, to $1472.
The socio-economic modelling showed rates for Ainslie residents living in the average-priced house on a single pension equated to 14.35 per cent of their yearly income, even with the $700 concession.
That was nearly triple the proportion for pensioners who lived in a detached house in Charnwood, where rates accounted for 4.84 per cent of a single pension and 3.21 per cent of a couple's pension.
Those in couples, on part pensions and on fixed incomes fared better.
For singles on a 50 per cent pension with a separate source of income, rates are expected to account for 8.43 per cent of the yearly income for residents of the average Ainslie house, after the concession. For couples that dropped to 5.52 per cent.
For single retirees on a fixed income of $50,000 a year in Ainslie, rates accounted for 7.57 per cent of their annual income. That reduced for couples on a fixed income of $75,000 to 5.04 per cent. Fixed income retirees do not receive a concession on their rates.
Unit owners also appeared to fare better, however the modelling didn't take into account strata fees.
Ainslie pensioners in a unit were estimated to pay 8.55 per cent of their income in rates if they were single, and 5.67 per cent if they were in a couple.
By comparison, self-funded retirees in the same unit would pay 5.07 per cent if they were single and 3.38 per cent in a couple.
The ACT government expanded its rates deferral scheme in last Tuesday's budget by removing income and unimproved land thresholds.
Now all property owners aged over 65 years can defer their rates until the sale of their property, a measure expected to cost $50,000 this year.
The goverment also expanded the transition the new methodology for another year.
However unit owners will lose the $100 rebate from last year's budget, and all ratepayers will lose access to the early payment discount from July 1.
