Labor energy saving policy EQUALS pension cuts

11-May-2010

Pensioners who installed energy saving systems such as solar panels under the Rudd Government energy savings schemes may have their Centrelink benefits reduced as a result.

Sussan Ley MP, has been made aware of cuts to pensions for people who have installed energy saving systems on their homes which have resulted in credits to their electricity accounts. These credits are treated as income by Centrelink.

“I have been made aware of several examples, one where a pensioner couple spent close to $5 000 installing 21 solar panels. In their latest account they exported 347kwh for a credit of $244.00. However this would cause a loss of 50 cents in the dollar of pension.” Sussan Ley said

“At this rate it would take the couple 11 years and 8 months to recoup their outlay but in the meantime their annual pension is reduced by $425!

“It is disgraceful that pensioners and families are having their benefits reduced because they took up a government scheme for renewable energy by installing solar panels. This is just another example of how out of touch Mr Rudd is with everyday Australians and his inability to recognise the impact his decisions have on their day-to-day lives” Ms Ley said

“Instead of making a grab on pensioners’ pockets, the Government should be congratulating them for their energy saving efforts. This is certainly NOT Opposition policy. I will be arguing against it very strenuously in the hope that the Prime Minister changes the rules.” Ms Ley said.

It is unclear whether people renting houses with solar panels may also have their benefits reduced.
“The government should come clean on whether this latest money grab would affect renters as well.” Ms Ley said

“I am calling on the Rudd Government to ask the Tax Office to issue a public ruling, explaining the effect on renters and landlords of the solar panels rebate scheme”.

Ms Ley is encouraging anyone whose benefits have been cut or have been adversely affected in any way by installing energy saving systems in their homes under this scheme to contact her.

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