The Seniors Concession Allowance and Utility Allowance: Equity Implications

Abstract

The purpose of this brief policy note is to draw attention to two new payments available to elderly Australians: the Seniors Concession Allowance and the Utilities Allowance. It examines their potential equity outcomes and argues that, combined with recent changes to the eligibility requirements for the Commonwealth Seniors Health Card (CSHC), the new Seniors Concession Allowance serves to reduce equity in Australia's welfare system. The second concession, the Utilities Allowance that targets elderly Australians in need, is necessary due to deficiencies in the current method of indexing the aged pension.