The South Australian government is introducing significant changes to its cost-of-living relief programs, set to take effect from January 1, 2025.
These adjustments will open up the $255.60 cost-of-living concession and energy support to thousands of low-income residents, especially those living in shared accommodation.
The update follows a review that found many people were excluded from assistance due to outdated eligibility rules, particularly concerning housemate income.
Changes to the Cost-of-Living Concessions
The government has acknowledged that the old system for cost-of-living concessions and other household support was complex and left many in need without assistance.
One of the key issues was that low-income renters in shared homes were unfairly denied access to support based on the income of their housemates.
Removal of the Housemate Income Rule
Starting January 2025, South Australians living in shared homes will no longer lose eligibility for concessions due to the income of their housemates.
Previously, renters could be disqualified from energy and cost-of-living support if their housemate earned a modest income. For example:
- Energy Concession: Renters could lose the energy concession if their housemate earned just $3,000 per year.
- Cost-of-Living Concession: Renters could be excluded if their housemate’s income exceeded $24,000.
These changes are expected to make the system fairer, allowing more low-income renters to access essential financial relief.
Support for Families and Vulnerable Groups
The government is also extending support to other vulnerable groups such as age pensioners and those living in rooming houses.
Previously, households in these situations were at risk of losing access to concessions due to factors like the income of family members or the number of residents in a shared living space.
- Age Pensioners: Those receiving the Age Pension were at risk of losing support if an adult child, even one working part-time, moved back into the household.
- Rooming Houses: Under the old system, only one resident in a rooming house could claim the cost-of-living concession, even though many of these residents had low incomes.
These updates aim to ensure households in various living situations receive the support they need, including families with dependent children or those in shared housing.
Government’s Financial Commitment
The South Australian government has committed significant funds to enhance these support measures.
Since the 2022 election, over a quarter of a billion dollars has been allocated to increase the availability and value of concessions. Key areas of this funding include:
- Cost-of-Living Concession: The government has doubled the cost-of-living concession to match the support provided to homeowners.
- Energy Bill Support: Additional funds have been set aside to assist with rising energy bills, which are a growing concern for many low-income residents.
Minister for Human Services, Nat Cook, emphasized that these efforts aim to simplify the process of accessing concessions, making it more consistent and equitable for those facing financial hardship.
Important Deadlines and Eligibility
South Australians who may be eligible for the $255.60 cost-of-living concession should apply before the December 31, 2024, deadline.
The eligibility criteria include:
- Eligibility: Pensioners, Centrelink recipients, and low-income earners.
- Application Deadline: December 31, 2024.
- Location Requirement: Applicants must be residents of South Australia and meet the income criteria.
Additionally, the concession is available for those living in shared housing or transitional housing.
The government encourages all potential applicants to submit their forms early to ensure they don’t miss out on this vital assistance.
The Bigger Picture: Addressing Cost-of-Living Pressures
The cost-of-living crisis is an ongoing issue throughout Australia, and South Australia’s updated policies reflect a growing recognition of the financial struggles faced by many low-income individuals.
Shared accommodation options, such as rooming houses and transitional housing, play a crucial role in providing affordable housing solutions for people at risk of homelessness.
By removing income restrictions for housemates, the government is acknowledging the changing nature of living arrangements, where many adult children remain in the family home longer, and more people rely on shared housing to reduce costs.
These changes are designed to ensure that those in need receive financial support, regardless of their living situation.
