“While CPSA sees the merit in reviewing the emergency services funding system, there seems to be a misunderstanding in the reasons behind why people may not have home and contents insurance” said Research and Policy Officer, Amelia Christie.
“Pensioners and retirees are over-represented among home owners who have no building insurance as they are less likely to be able to afford the premiums.
“While in theory switching to a tax based on property ownership may be more equitable, pensioners who cannot afford insurance are unlikely to be able to afford an additional tax
“If a property tax is introduced, this will not result in insurance premiums being reduced and the end result will be prohibitive for people on low incomes in two ways – they still cannot afford to insure their properties and they will be unable to afford the new tax.
“People on low, fixed incomes are unable to afford basic goods and services, so will have to forgo essentials if they are to be slapped with an additional tax
“We urge people on low incomes to be part of the consultation process by visiting http://haveyoursay.nsw.gov.au/ESL
“If a property based levy is to be introduced CPSA calls on the government to ensure that pensioners and others on low incomes are exempt from the tax as it could push them into poverty,” said Ms Christie.
CPSA represents pensioners of all ages, superannuants and low-income retirees. CPSA has 137 Branches and Affiliated Organisations, with a combined membership of 30,000 people.
Media Contact: Amelia Christie, Research and Policy Officer
Mobile: 0410 612 182