NO.048

TAX EXEMPTION FOR SENIORS’ CONCESSION ALLOWANCE AND UTILITIES ALLOWANCE

The Australian Government has allowed an exemption from income tax for the

seniors’ concession allowance and the utilities allowance, two new allowances

for senior Australians which were announced as election commitments.

The seniors’ concession allowance of $200 per year is paid to self-funded

retirees with a Commonwealth Seniors Health Card, in two instalments per year,

with the first $100 instalment having been paid in December 2004.

The utilities allowance of $100 per year for singles and $50 per year for each

member of a couple is paid to Australians of age pension age receiving income

support. Payments are made in two instalments with each half-yearly pension

indexation adjustment, with the first instalment having been paid in March 2005.

These measures will ensure that senior Australians will not lose any of their

allowance through income tax. They will also ensure that the allowances do not

affect any entitlement senior Australians may have to any tax offsets.

The seniors’ concession allowance and the utilities allowance were announced

by the Government in the election policy statements Recognising Senior Australians

— Their Needs and Their Carers and Saluting Their Service.

CANBERRA

10 May 2005