PL-2026-002 · MG-03 · policy · adopted by the minister
Regional relief supplement: income free area
Regional Relief Act 2025 (fictional) s 14; Concessions policy 2.1. Version 2 of 2.
Rule
900 → 1050
freeArea ($ per fortnight) · MG03_FREE_AREA
Evidence
3
data, research, feedback
Impact
not tested
GL-PM-04
Clearance
not routed
Position, version 2
consultation · by Drafting agent on 25/08/2026 · Indexation and a higher free area after consultation on cost of living.
The income free area rises from $900 to $1,050 a fortnight, indexed each July to the CPI.
Rationale: Indexation restores the free area's real value and removes the cliff for part-time earners.
Options considered
- No change: Real value keeps falling
- $1,050 indexed: Restores 2025 value; annual cost tested on live claims (chosen)
- $1,200: Beyond the fiscal envelope
Privacy: No new personal data. · Human rights: Compatible; improves access to social security. · Equity: Benefits low-income part-time earners. · Cost: Tested on the live caseload; see impact.
Evidence base
Every position cites its sources (GL-PM-03)
- DATA MG-03 claims 2026 Claims refused or reduced on income (MG-03 payments)
Income between $900 and $1,050 is the most common reason for a reduced rate.
- RESEARCH CPI 2025-26 Consumer price index, regional (Statistics agency)
Prices up 12% since the free area was set.
- FEEDBACK Ombudsman 2026 Complaints about concession thresholds (Ombudsman)
Thresholds not indexed cause hardship.
Impact on live cases
Not yet tested (GL-PM-04)
Run the impact test.
Consultation: public, 27/08/2026 to 17/09/2026
Released by J. Achebe (EXECUTIVE) · 5 submissions (GL-PM-02, 05)
Should the income free area rise to $1,050 a fortnight and be indexed each July?
- SUPPORTRegional Welfare Alliance (Regional Welfare Alliance) · cost of living, indexationIndexation should have happened years ago; support the change.
- OPPOSERatepayers' Association (Ratepayers' Association) · cost, targetingWidening eligibility spends public money on people who can work more hours.
- SUPPORTA. Okonjo · cost of livingMy hours were cut and I fell just over the line.
- AMENDSmall Business Chamber (Small Business Chamber) · work incentivesSupport indexation but taper more gently so part-time work is not discouraged.
- SUPPORTCouncil social planner (Council) · indexation, targetingIndex it, and review the taper at the same time.
Version history
Immutable; each with its author and change note
| Version | Status | Author | Created | Change note | Rule |
|---|---|---|---|---|---|
| v2 | CONSULTATION | Drafting agent | 25/08/2026 | Indexation and a higher free area after consultation on cost of living. | freeArea 900 → 1050 |
| v1 | SUPERSEDED | K. Ito | 10/08/2025 | Original. | freeArea 900 → 900 |