Broken promise on CTP premium increases

Shadow Treasurer Rob Lucas said today budget papers revealed Treasurer Koutsantonis had broken his promise CTP premiums would only have “CPI like” increases under his MAC privatisation.

“One of the major concerns when the Weatherill Government broke its promise and privatised the MAC was the impact it would have on CTP premiums for families,” said Mr Lucas.

“Mr Koutsantonis and Mr Weatherill made a number of promises that CTP premiums would be restricted to ‘CPI like’ increases.

“Yet Mr Koutsantonis went ahead and allowed the new private sector insurance companies to increase premiums by 2.9% each year for the next three years.

“However, Treasury has included its estimates of CPI in the budget papers as only 1.75% this year and 2.25% and 2.5% for the next two years.

“In fact these Treasury estimates were the same as those included in the MYBR issued last December.

“Clearly these are significantly less than the 2.9% per year approved by Mr Koutsantonis.

“For an average six cylinder car the increased cost (in excess of CPI) over three years for South Australian families will be about $20.

“Families in 2019 will be paying about $1412 p.a. for CTP or $34 p.a. higher than this year’s cost.

  

 

2015-16

2016-17

2017-18

2018-19

Total

CPI increases

-

1.75%

2.25%

2.50%

-

2.9% increases

 

2.90%

2.90%

2.90%

-

 

 

 

 

 

 

Increase

 

 

 

 

 

@CPI increases

$378.00

$384.62

$393.27

$403.10

$1,180.98

@2.9% increases

$378.00

$389.00

$400.28

$411.89

$1,201.17

 

 

 

 

Difference

$20.19


“This is yet another example where South Australian families struggling with massive increases in state taxes and charges such as ESL and water costs are being slugged yet again by the Weatherill Government.” “Mr Koutsantonis must now explain publicly why he has broken his promise to ensure CTP premiums would be restricted to only ‘CPI like’ increases.