Wealthy Aussies collect billions in poorly targeted cost-of-living relief
Billions of dollars in cost-of-living relief is being handed to wealthy Australians through poorly targeted concessions, according to an independent think tank.
The top 40 per cent of Australians by income or wealth received a combined $3.6 billion in benefits this year that were designed to provide cost-of-living relief but were not means-tested, the Policy Institute Australia claims.
Wealthy retirees can be eligible for concessions simply because they hold a pensioner or seniors card. Getty
Among the examples cited in the institute’s new report is a retiree with a fully paid-off home worth $3 million, a car and $500,000 in superannuation who could be eligible for $2800 in various state government concessions because they hold a pensioner concession card while a single mum with who rents and catches the bus is only eligible for just over half that.
In another example, a self-funded retiree couple who own their $3 million home and have $5 million in superannuation who hold a state Seniors Card or Commonwealth Seniors Health Card are likely eligible for Queensland’s $500 electricity and gas rebate, while an average working family earning $95,000 a year with a $500,000 mortgage, are not.
It also cites toll road concessions in NSW and free or half-price public transport in Victoria, as providing far more to the top 20 per cent of income earners than the bottom 20 per cent.
The Active and Creative Kids Vouchers program in NSW, which is only available to families receiving Family Tax Benefit, was cited as a good example of directing concessions to the families that most need them, in comparison with Queensland’s Play On! Sports Vouchers, which are available to all families.
The report recommends all state and territory governments adopt a lump sum model similar to South Australia’s $270 Cost of Living Concession for eligible low-income households.
It also recommends concessions for older Australians ideally be limited to full Age Pension recipients and not tied to state Seniors Cards or the Commonwealth Seniors Health Card, which are held by many wealthy retirees.
The report’s author, principal economist Nicholas Tarrant, said the cost of living was the number one concern for people across the country but governments, particularly those headed to elections soon like NSW and Victoria, shouldn’t be tempted to spend more.
“Cost-of-living relief is well-intentioned, but not well-targeted,” Tarrant said.
“Support is too often based on how much petrol or energy you use, or how much your home is worth.
“But this favours the well-off.
“If state governments want to help with cost-of-living pressures, they need to rethink the way they do it.”
The report claims its recommendations could save state and territory governments up to $2 billion this year alone.
In a statement, Victorian Treasurer Colin Brooks defended the government’s universal cost-of-living measures.
“When fuel prices spiked, we moved fast to take pressure off every Victorian - that is what you do in a crisis - and these measures did what they were designed to do,” Brooks said.
People queue for the V Line at Southern Cross station in Melbourne after Victoria introduced free public transport for all users. Joe Armao/Nine
“Labor makes no apology for the scale of cost-of-living support Victorians have received - we will always back Victorians when they are doing it tough.
“We can afford it because it’s one-off cost-of-living help right now, while we are delivering a surplus.”
Queensland Treasurer David Janetzki said the government had managed to deliver cost-of-living relief while also lowering debt.
“The 2026-27 budget delivered lower debt, $73.5 billion lower than it would have been under Labor and a surplus in 2029-30 with no new or increased taxes,” Janetzki said.
“Despite global pressures, rising interest rates, federal budget uncertainty and the former Labor government’s legacy of fiscal vandalism, we delivered a record cost of living package for Queenslanders doing it tough in the middle of a national affordability crisis.”
A NSW government spokesman said it was open to ideas on how to target support but wouldn’t make families wait in the meantime.
“We know household budgets are under pressure, which is why this year’s NSW budget delivered $551 million in transport cost-of-living relief, including $100 off rego, frozen Opal fares and a lower $50 weekly toll cap,” the spokesperson said.
“While we're always open to ideas on making support better targeted, we don’t believe families doing it tough with tolls and rego should be made to wait.”
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