In just two months, low income earners across Tasmania could be left more than $350 short as talks over axing new federal energy payments continue.
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Earlier this year, the federal government introduced a plan to end energy supplement payments for new welfare recipients in an effort to save taxpayers $1 billion over four years.
The potential changes mean the energy supplement will be closed to new income support recipients from September 20.
The supplement is provided through the federal government to offer extra payments for energy costs, providing up to $7 a week for individuals.
If the supplement was to be scrapped, it could mean a loss of hundreds of dollars a year for potential recipients.
A federal government spokesperson said the relevant Social Services Legislation Amendment (Ending Carbon Tax Compensation) Bill was before Parliament and had been referred to inquiry.
“The bill sought to end compensation for a carbon tax that no longer exists by closing the energy supplement to new welfare recipients,” the spokesperson said.
“It isn’t appropriate to continue to compensate people for a tax that no longer exists … the repeal of the carbon tax in 2014 was estimated by the ACCC to have delivered annual savings of between $46 and $263 to households.
But Tasmanian Labor Senator Carol Brown said up to $1.7 million Australians could be impacted.
“Submissions to a senate Inquiry examining the proposed cut show there is no support for Malcolm Turnbull’s unfair plan,” she said.
“Pensioners don’t support axing the Energy Supplement … People with disability don’t support axing the Energy Supplement … Carers don’t support axing the Energy Supplement.”
Council of the Ageing Tasmanian executive officer Sue Leitch said these sort of changes were concerning.
“If you’re having to make ends meet on a fixed income and you get an increase on any part of it, something else has to give,” Ms Leitch said.
“People are already under price pressures in a number of different areas.”