Power prices centre of Giddings’ budget

Tasmanian Premier and Treasurer Lara Giddings is keeping the focus on power prices in the lead-up to her second state budget, to be delivered on Thursday.

Ms Giddings has announced a boost to electricity concessions just days after unveiling a scheme to trim household power bill increases by $200 a year.

The announcement also comes a day after plans were revealed for a major overhaul of the state’s electricity sector, including a move to full retail competition.

The premier says concession payments will increase by $11.7 million to $37.3 million, benefiting 78,000 Tasmanians to the tune of $450 a year.

That relief will come on top of the $200 benefit and federal government compensation for the carbon tax.

“My government is deeply concerned about those doing it tough in our community, which is why we are taking power price relief extremely seriously,” Ms Giddings said in a statement.

Premier Giddings said reductions in power prices would be paid for by the state’s proceeds from the carbon tax to be introduced on July 1.

Opposition spokesman Matthew Groom said there was nothing new in Wednesday’s announcement.

“What Ms Giddings has announced today is nothing more than an electricity concessions con,” he said.

“The increase in electricity concessions is simply indexation dressed up as a money hand-back.”

The premier said more “cost-of-living initiatives” would be unveiled in the budget.

“Just today there are reports in the media about the work charity groups are doing to help people in need,” she said.

“We are committed to working closely with the community sector to ensure that appropriate safety nets are in place for the most vulnerable in our community.”

Ms Giddings has foreshadowed a decrease in GST revenues of around $114 million for the next financial year.

A mid-year financial report delivered in February predicted a budget deficit of around $250 million.

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